Earlier this week, in a major global development, the Trump administration asked China to shut down its Consulate General in Houston. The US gave short notice of just 72 hours. The announcement came all of a sudden, surprising geopolitical analysts.

Since then, several analysts have started commenting that the signs of an "all-out new cold war" are already visible. The drastic move has come in for intense analysis.

CNBC has tried to make an analysis of the implications of the move for markets. "Wall Street firms have been examining the potential consequences of the fraying relationship and expect there will be an increasingly polarized global economy," the report says. It quotes Ed Yardeni as warning that "in addition to the coronavirus, the deteriorating relationship (between the US and China) is one reason why he sees the potential for a market pullback of more than 20%."

It's too early days to talk about the repercussions of the developing US-China cold war comprehensively. But if the early signs are anything to go by, countries like India will have to "choose sides".