As the trade conflict between the US and China continues to rumble on, there appear to be more losers than winners. Worse, we could all be losers, according to the key panellists of Future of Finance Summit Day 1 closing session: Fallout of US-China Trade War
September 27, 2019 | Isabelle Francis- The escalating US-China trade war affects the entire global economy
- Decoupling of the two biggest economies means ripping the global economy apart
- The importers and consumers are the one's shouldering the weight of added tarrifs
The Asian Banker Financial Summit session on the fallout of a US-China trade war saw a heated debate between members of the panel, who are economists, trade-experts, political appointees and professionals from the finance industry.
Although divergent in their views, the panellists, who have in-depth experience dealing with issues relating to China and the US, agree there are incentives for both countries to come to a truce. If they fail, both countries will fall at the expense of not only their local economies but the global economy.
Panellists were divided on which of the two countries has the upper hand in the conflict but in consensus that a zero-sum game is an unrealistic expectation.
The panellists noted the reality on the ground: the battle between the two powerhouses has heightened, raising concerns of a point of no return or a “Thucydides Trap”, a term coined by Havard professor Graham Allison to capture the idea that the rivalry between an established power and a rising nation often ends up in war.
Jiong Gong, professor of economics at the University of International Business and Economics in Beijing said, “The US-China relationship has gone beyond the trade war to be adversaries in the future”. He further pointed out that successful negotiations between US and China are heavily dependent on the countries’ respective leaders.Tod Burwell, CEO of BAFT-IFSA and moderator of the session commented, “Politics got us into this, it will get us out”, adding that tensions should reduce as the US draws closer to its 2020 Presid...
Categories:
Keywords:
As the trade conflict between the US and China continues to rumble on, there appear to be more losers than winners. Worse, we could all be losers, according to the key panellists of Future of Finance Summit Day 1 closing session: Fallout of US-China Trade War
September 27, 2019 | Isabelle Francis- The escalating US-China trade war affects the entire global economy
- Decoupling of the two biggest economies means ripping the global economy apart
- The importers and consumers are the one's shouldering the weight of added tarrifs
The Asian Banker Financial Summit session on the fallout of a US-China trade war saw a heated debate between members of the panel, who are economists, trade-experts, political appointees and professionals from the finance industry.
Although divergent in their views, the panellists, who have in-depth experience dealing with issues relating to China and the US, agree there are incentives for both countries to come to a truce. If they fail, both countries will fall at the expense of not only their local economies but the global economy.
Panellists were divided on which of the two countries has the upper hand in the conflict but in consensus that a zero-sum game is an unrealistic expectation.
The panellists noted the reality on the ground: the battle between the two powerhouses has heightened, raising concerns of a point of no return or a “Thucydides Trap”, a term coined by Havard professor Graham Allison to capture the idea that the rivalry between an established power and a rising nation often ends up in war.
Jiong Gong, professor of economics at the University of International Business and Economics in Beijing said, “The US-China relationship has gone beyond the trade war to be adversaries in the future”. He further pointed out that successful negotiations between US and China are heavily dependent on the countries’ respective leaders.Tod Burwell, CEO of BAFT-IFSA and moderator of the session commented, “Politics got us into this, it will get us out”, adding that tensions should reduce as the US draws closer to its 2020 Presid...
Categories:
Keywords:
