CNBC’s Jim Cramer is concerned President Donald Trump’s administration will continue to put pressure on China in the election, creating a precondition for the market.
“I think the president is holding the heat. I expect more negatives about China,” Cramer told Squawk on the street.
Cramer’s remarks on Thursday come as U.S.-China relations continue to grow increasingly rigid, following a brief chill in January after the two sides agreed on a one-stage trade deal. However, China is reportedly far from fulfilling its commitments to purchase goods under the agreement, which was reached after a tariff war back and forth between the two largest economies in the world that began in 2018.
At a White House conference Monday, Trump said the trade deal now means “very little in total imports of things,” then again criticized China’s handling of the coronavirus and blamed the country for the pandemic.
“We see China differently than we did eight months ago. Much different,” said Trump, who initially praised China’s coronavirus response but now argues that its government was not transparent in sharing information about the blast. beginners.
As the virus emerged from Wuhan, China, public health experts say the U.S. government’s failure to act quickly to improve the virus, as well as lack of coordination between federal and state entities, are partly responsible for America having more reported cases. of Covid- 19 than any other country.
White House spokesman Judd Deere said in a statement to CNBC that Trump “is constantly reviewing our relationship with China.” But the president has “nothing to announce at this time,” Deere added.
The Trump administration has also ratified its review of Chinese tech companies – namely ByteDance, which owns the video social media app TikTok, and Tencent, which owns the WeChat messaging app.
Last week, Trump signed a pair of executive orders banning U.S. firms from conducting transactions with Tencent’s ByteDance and WeChat. orders enter into force in September, although there is still some confusion about how to implement them.
Business executives from major US companies including Ford Motor Co. and Disney voiced their concerns about a WeChat ban at the White House earlier this week, according to a report by The Wall Street Journal.
Tensions between the US and China have also intensified over Beijing’s extensive national security law imposed on Hong Kong this summer. The Trump administration recently sanctioned 11 people, including Hong Kong Chief Executive Carrie Lam.
The U.S. Treasury Department said Lam was aiming to “implement Beijing’s policies of repression of freedom and democratic processes” in the former British colony.
China responded with a series of sanctions against U.S. officials, including U.S. Republican Ted Cruz of Texas and Marco Rubio of Florida.
– CNBC’s Berkeley Lovelace Jr. contributed to this report.