The U.S.-China relationship is quickly deteriorating again, posing a major risk for markets

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The U.S. and China flags stand behind a microphone awaiting the arrival of then-U.S. Senator John McCain for a press conference at the U.S. Embassy in Beijing on April 9, 2009.

Frederic J. Brown | AFP | Getty Images

Just as fears of inflation and slowing growth are starting to hold back markets, another risk is lurking in the background: rising tensions between the U.S. and China.

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