Relations Between China & U.S. Worsen Heading into 2025

Relations between China and the U.S. have worsened ahead of the New Year as the world’s first and second-largest economies continue to duke it out. A sign of that comes from a cyberattack on The Department of the Treasury earlier this month. This was only recently revealed and it appears China is behind the attack. However, the country has denied any connection to the incident.

This attack affected BeyondTrust, a third-party software service provider, and resulted in the hacker gaining access to Treasury user workstations. The affected system has been stopped and the government believes the hacker no longer has access to its computers.

China Wants Full EV Independence

Another major move from China is the shift to creating processors for electric vehicles (EVs). The country already hugely focuses on local EV production and now wants the chips in those EVs to be made locally too.

However, U.S. investigators claim China didn’t get there on its own. Instead, they argue the country used “extensive anticompetitive and non-market means” to create its chips. This could have a global impact if the country floods chip markets with its copies.

What 2025 Holds for China & U.S. Relations

The trade war between China and the U.S. doesn’t appear to be ending anytime soon. President-elect Donald Trump has already proposed heavy tariffs on Chinese goods when he takes office next month. This additional pressure on the country could keep relations between the U.S. and China strained for the foreseeable future.

Investors who want to take advantage of this trade war might consider taking stakes in U.S. companies. The tech sector is at the heart of this economic conflict, making it a prime candidate to benefit from Trump’s policies. Apple (AAPL), Microsoft (MSFT), and Nvidia (NVDA) are among those worth a potential investment.

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