Risks pile up amid shift from US to China | Cash Call | Andrew Wong

Global interactions seem to be on the rise now that there has been a sea change in fears over pandemic risks, but there are many undercurrents in ties between countries.

Of course, the biggest concern is Sino-US relations, with no progress on this front.

Even all that US talk last year about lifting some tariffs on Chinese goods has amounted to nothing.

With no sign of improvement in ties, coupled with Russia's invasion of Ukraine, countries in regions such as the Middle East and Europe are rolling out new moves on the international relations front.

Some analysts have been wondering why the Middle East and Europe have been reviewing relations with China and the United States in recent days?

For example, the foreign ministers of Saudi Arabia, Faisal bin Farhan Al Saud, and Iran, Hossein Amir-Abdollahian, had their first meeting in more than seven years.

That reflects Mideast attempts to solve problems through China.

The French president, in a trip to China, also expressed hope that Beijing could help resolve the Ukraine issue, although that setiment has raised US and European hackles.

If we take it that the Middle East and the European Union want to seek help from other countries to solve some disputes, it is like saying some countries have lost trust in and patience with the United States, and that the latter's status as the "world's policeman" has begun to become tainted.

The main reason for believing in the US ability to keep world order is not only its military power but also trust in US clout.

But as the size of the US national debt continues to grow, along with the failure of Silicon Valley Bank and other problems, countries are beginning to question the value of its sovereign debt and the possibility of systemic banking problems there.

As well, the Iranian issue has been a thorn in the region's side, and the Middle East has been relying on the United States to solve problems, and the solutions have obviously not been forthcoming.

And ever since Russia invaded Ukraine over a year ago, Washington seems to have played no mediating role and its sanctions against Moscow have not stopped the war.

And neither had its support for Ukraine beaten Russia back.

All this has left the countries wondering whether the United States is a country that can be relied on.

Of course, that countries are beginning to harbor doubts about the United States doesn't mean they are turning to China in a comprehensive manner.

After all,the United States still leads in military power, and it is impossible to completely solve all of the world's problems by relying on China, so the Middle East and Europe seem to just want to exert pressure on the United States with a shift to China.

They also fear that US fiscal problems will worsen and want to diversify their exposure and edge closer to China.

However, because so many countries want to bet on both the United States and China at the same time, it will make their relationship more difficult to repair, and it will also increase geopolitical risks.

Why? I will talk about that next week.

Andrew Wong is chairman and chief executive of Anli Securities