Former Clinton Trade Rep Warns of Temporary US-China Fix Amid Global Trade Fragmentation

Charlene Barshefsky, former U.S. Trade Representative under Bill Clinton, delivered a stark assessment at the Bund Summit in Shanghai, stating that any US-China trade agreement WOULD only serve as a temporary tactical solution. "A US-China deal, whatever it is, will be at best setting a tactical floor for the moment," she said. Barshefsky, who spearheaded China's WTO entry, warned that the global trading system is fracturing into three blocs: the U.S. and allies, China with the Global South and Russia, and non-aligned economies like India.

Meanwhile, U.S. and Chinese officials resumed talks in Kuala Lumpur, with the U.S. Treasury describing discussions as "very constructive." Yet underlying tensions remain, as both sides seek to avoid a repeat of past tariff wars that saw duties exceed 100% on some goods. The geopolitical uncertainty could Ripple through markets, including cryptocurrencies, as investors weigh the implications of a fragmented global trade landscape.