I wouldn't call it conflict, that's a bit much. It's sort of more like...they don't like each other a whole lot, but don't do much about it. At least from what I've seen. We still trade with them but they don't let anyone from here enter their city.

It's pretty easy to forget they're rivals.

[ Especially if you happen to be a resource-oriented person like Rhys who cares more for profits than the political relationship between two nations he fully intends to earn profits from. He's not going to go the route of Hyperion but he's still not the most moral or even decent person out there. ]