MeridStreet Open terminal →
WAR & ESCALATION

What trap? US-China relations show conflict is far from inevitable

·South China Morning Post·Impact 2/5 · Moderate

The US-China relations have shown signs of improvement, contradicting the widely-held notion of the "Thucydides Trap". This theory suggests that a rising power and an established one are destined to clash, much like two large vehicles merging into a single lane. However, recent developments indicate that conflict is not as inevitable as previously thought, and that diplomacy can still play a significant role in managing tensions between the two nations.

Read the source report: South China Morning Post →

Why it matters

Experts are reevaluating the inevitability of war between the US and China. This shift in perspective could lead to increased diplomatic efforts and cooperation, reducing tensions between the two nations.

Market impact

Impact score
2 / 5
Market signal
Negative / risk-off
Category
War & escalation
Model confidence
60%

Markets & countries in focus

United StatesChina

Transmission channels

Reevaluated threat→Increased diplomacy→Reduced tensions→Improved relations→Global risk appetite rises

Likely winners & losers

Winners

  • Diplomacy stocks
  • Risk assets

Under pressure

  • Defense stocks
  • Safe-haven assets

Explore the intelligence

Open the live MeridStreet terminal →

MeridStreet does not reproduce source articles. The summary and analysis above are generated by MeridStreet from public headlines and its own market model; the original reporting belongs to South China Morning Post. For information only — not financial advice.