The diplomatic relationship between the U.S. and China continues to falter as the two countries disagree on human rights issues, the Russian-Ukraine war, and military strategy.
One analyst believes that the "new model" relationship established between China's president Xi Jinping and former U.S. President Barack Obama is a thing of the past.
"That more or less cooperative relationship between the United States and China that had been there for a good 30-plus years is over and not coming back anytime soon. I would say it is a generational shift, actually," Dane Chamorro, head of Global Risk Analysis at Control Risks, told Yahoo Finance Live (video above.)
In 2014, Beijing suspended cooperation in a joint U.S.- China cybersecurity team in response to a U.S. court indicting five Chinese hackers on charges of stealing trade technology from U.S. companies for the benefit of Chinese competitors, including state-owned enterprises.
Chamorro says that the national relationship began rifting around that time, with no return in sight. "It is not going to go back to the way it was, kind of pre-2014, pre-Xi Jinping. That's over," he said.
The global pandemic has also strained the relationship, according to Chamorro. "[The] Covid pandemic was a great example of a situation where normally pre-2014, the U.S. and China would have found, despite disagreements, a way to work through that for the betterment of both and the rest of the world, and that didn't happen," he said.
Beijing and Washington are also growing further apart given the recent conflicts, including Xi's alignment with Russia, Taiwan's political status, and Chinese military aggression. Chamorro agreed that "the future is a relationship that is defined by conflict. I don't mean kinetic conflicts, but is defined by friction and mistrust."
Potential tariff rollback
As part of the policies to combat high inflation, the Biden administration is expected to announce actions to lift tariffs imposed on certain Chinese imports.
However, Chamorro doesn't believe the rollback will happen until later this year due to elections in both countries. "I suspect we might see some rollback of the tariffs probably after the midterm elections. Remember, this is an election year in the U.S. and it's a selection year in China. So it's not a great time for either side to be kind of exposed to their opposition." he added.
Rebecca is a reporter for Yahoo Finance.