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The US-China economic standoff, which has already escalated into a full-blown trade war, is further reinforced by various geopolitical tensions. The most recent flashpoint came last week, after the US approved a $1.8 billion arms sales to Taiwan, which Beijing considers to be an integral part of China. China demanded Washington abandon its arms sales plan and immediately “stop military contact” with Taiwan, threatening sanctions against the American arms manufacturing giants if the deal goes through.
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