The World In A Week – Interim Update9th July 2020
Rather than the symbolic red briefcase, our Chancellor, Rishi Sunak, appeared to don a red outfit and played the part of Santa Claus in his summer statement yesterday. His £30 billion giveaway was firmly aimed at sustaining youth employment and helping low-income workers. We will give more details on his economic stimulus package in Monday’s ‘The World In A Week’.
The Great Firewall of China, which has extended its boundaries to encompass Hong Kong, is continuing to put pressure on the already stretched relationship between the US and China. The new law means China has control over Hong Kong’s internet, including censorship and potential arrests for managers of tech companies who refuse to hand over data on their users. This poses a dilemma for some of the largest US tech firms who may have to abandon their operations in Hong Kong.
Trump’s reprisal was confirmation that a ban on the video app ‘TikTok’ is being considered, which would be devastating to the youth in the US, but also gives rise to the fact that specific companies are now being targeted in this increasingly tense political environment. Media reports that the US is considering undermining the Hong Kong dollar’s peg to the US dollar, makes the US-Sino cold war that little bit chillier and adds more credence to the theory that Trump will be using his tough stance on China in his election campaign.