While the debt issue is definitely a major obstacle to some projects, it is not detrimental to the Belt and Road Initiative. In order to address this problem, China has strengthened cooperation and policy coordination with the BRI states and made some progress on it.
In September and October 2018, US Secretary of State Mike Pompeo and Pakistani Foreign Minister Shah Mehmood Qureshi held two meetings in Islamabad and Washington to renegotiate the terms of engagement.
Recently a number of stories have appeared in the Western liberal media pushing the narrative that US President Donald Trump despises both China and the Chinese people. These are useful to the Democratic Party going into an election in November 2018.
Thanks to Trump’s trade war on China, the US is about to experience a massive sample of just what a new, very large consumption tax will taste like. The result is sure to be a significant tax-based lifting of sticker prices across a huge range of goods.
The decision of other signatories to proceed with the JCPOA and the likelihood of a successful new trading arrangement sans US dollar could hurt the international position of the US dollar and the currency will be collateral damage to the current impasse.
In July 2018, Indian Defense Minister Nirmala Sitharaman announced that India was going ahead with the purchase of the S-400 Triumf missile shield from Russia. The US had on numerous occasions conveyed its discomfort with India’s decision to make this purchase.
Amidst political turmoil and deadlock, Maldives voted in its third democratic election on September 23, 2018. Opposition leader Ibrahim Solih secured 58.3 percent against President Abdul Yameen, a strongman politician who conceded defeat with 41.7 percent vote share.
The recent US trade retaliation against China is similar to that against Japan in the 1970s and 1980s. Japan’s economy was badly hit after the large appreciation of the Japanese yen as part of the measures to resolve the bilateral trade imbalance
Many analysts are looking at the disaggregated July US imports from China because changes in the July importation figure of the affected items are the first tangible data points of how the Chinese exports to the US have been affected.
The China-Japan Maritime and Airspace Liaison Mechanism, activated on June 8, 2018, is a crisis management mechanism established by the defense departments of both countries to prevent friction or conflict in their frontline forces of the sea and air.