Vehicles are waiting for shipment at the port of Lianyungang in Lianyungang, China.
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International trade, as we know, is unlikely to exist in a future and will instead be replaced by a regional trading system, one strategist told CNBC.
Speaking at "Squawk Box Europe" from CNBC Tuesday, Eoin Murray, head of investments at Hermes Investment Management, predicted that border trade would undergo dramatic change as well as trading tension.
"One of our views has been many months that this is not just a trade show, this is just a technical war that looks like globalization. We will probably end up with trading region & # 39; s instead of world trade, as we say. think today, "he said.
Although the Sino-American trade fair has probably had a major impact, Murray notes that the intensifying trade conflict between Japan and South Korea was also a signal that there could be an important shift in global trade practices.
"During the trade conflict – the trade is used here as a weapon – much deeper influences have been there since the Second World War, so that can also take some more resolution," he said. "For me, it simply refers to the fact that we will have a long-term trade tensions."
Technology is a key element of both trading spaces. The FS has driven its affiliates to shut down Huawei from its 5G networks, claiming the presence of a telecom giant in & # 39; enable a Chinese espionage infrastructure. Huawei, including Chinese companies, has also been placed on a trading list that will be banned from trading with US companies without special licenses from the US Department of Commerce.
Meanwhile, Tokyo has limited the export of three chemicals that are used in a semiconductor fabrication to South Korea. According to the Agency for Promotion of Trade in South Korea, the country is the second largest sector for semiconductors in the world.
Murray told CNBC that these tensions would "be more forward-looking as we move into an easier easy-to-use central bank."
& # 39; Doing things differently & # 39;
Last month, Michael told 39, Sullivan, "The Leveling" writer, to CNBC's "Squawk Box Europe" that it came to an end with FSA-led global empire and will be replaced by three distinct regional add.
"Where we go is a multi-polar world where you'll be at least three regions – Europe, the FS, China-oriented Asia," said he. "The difference is not that they are all big or that they are different emperors, but they are always doing things differently."
Hans Redeker, global head of FX strategy at Morgan Stanley, also told CNBC that US rates on China and Mexico were examples of globalization not being significantly reduced.