What’s going on here?
In 48 hours:

• China announced plans to create an “unreliable entities list” to ban foreign companies or people who violate market rules.
• Huawei Technology (added to a blacklist of the U.S) is reported to have canceled technical meetings with US contacts, and has sent all U.S. employees in the company’s Shenzhen R&D facilities back to the U.S.
• U.S. Acting Defense Secretary Shanahan blasted China for stealing technology from other nations and militarizing atolls in the South China Seas.

What does that mean?
All three investors (Ray Dalio, Mark Mobius, Stephen Jen), said on their interview with Bloomberg to be “bracing for a protracted superpower conflict and adjusting their portfolios accordingly.”

What’s next?
Donald Trump and Xi Jinping will be in Osaka, Japan on June 28 for the Group of 20 summit. Global investors aren’t expecting any breakthroughs.

Content source: Chandler. C. (2019) Bracing for a Protracted US-China Cold War. CEO Daily. [Online] Available from: http://fortune.com/2019/06/01/the-long-winter-bracing-for-a-protracted-us-china-cold-war/ [Accessed 2 June 2019]