Even if US-China tensions are manageable, a rough ride may be in store for listed equities

THE world heaved a sigh of relief when US President Joe Biden met his Chinese counterpart Xi Jinping for the first time in about a year last November in San Francisco, on the sidelines of the Asia-Pacific Economic Cooperation conference.

Even so, the two powers are locked in a fierce contest for global supremacy. In an area such as technology, for instance, each power is trying to develop its semiconductor industry and stifle the other’s growth in the sector.

Crucially, any substantial warming of ties will be difficult, as the two giants operate in different and incompatible systems.