U.S.-China relations are headed for the ‘darkest chapter yet,’ says Eurasia Group


Relations between the U.S. and China — the world’s top two economies — could worsen further as both countries have signaled that they are prepared to fight each other in many more ways, according to a political risk expert.

“There’s a lot of room for escalation here. I think that it’s, by now, quite clear that we’re in for the darkest chapter yet of U.S.-China relations,” Todd Mariano, director for U.S. at Eurasia Group, told CNBC’s “Squawk Box Asia” on Thursday.

“We’re seeing moves now more on the technology and export front. I think the troubling sign is simply the multiplicity of fronts at which the two countries are fighting or preparing to fight,” he said.

In the past few years, disputes between the two countries were focused on areas such as their trade imbalance and contest in technology — which triggered a tariff war threatening to derail the global economy.

In recent months, the U.S. and China have hit out at each other over a wider range of issues which include the origin of the coronavirus and the autonomy of Hong Kong.