This week, China again took the leading role in the global economy and political stage. A Chinese balloon, allegedly equipped with spy instruments, went off course and ended up somewhere above the US; tensions between China and the US were high as ever. US secretary of state Blinken even postponed his visit to China, which was due on 5 and 6 February.
Speaking about China, the country is set to catch up with the global economy at record speed after its reopening since the zero covid restrictions were let go. It is expected that the country will make a welcome contribution to global economic growth. According to the American Federal Reserve, an increase of 1% in China’s GDP leads to a 0,25% in the GDP of all other countries after two years.
As Europe cut off Russia as its leading energy supplier, LNG from the US is considered increasingly important for the continent. However, European climate goals are getting in the way of closing long-term contracts with US companies. According to these companies, buyers are afraid to conflict with these climate goals when closing deals that may leave them with more costs than benefits in the long term. It might lead to another hitch in the already increasingly complex energy markets.