As Bali Talks End, Global Finance Experts Seeks Solution for China-US Trade War
The trade talks in Bali which aim to curb the effects of the trade war between China and the United States have recently closed. Many global financial experts used the closing sessions of the summit to get their message through. Based on their sentiments, the message is very clear: trade tensions between two of the world's largest economies have affected global growth and that measures should be imposed in order to resolve the growing trade tensions.
During his closing speech, Bank of Japan Governor Haruhiko Kuroda said that a trade dialogue will play an important part in resolving the trade war.
In his speech, Brazil Central Bank President Ilan Goldfajn described the trade tensions between China and the United States as one of the biggest threats to smaller and emerging economies in the world.
Agustin Carstens, General Manager of Bank for International Settlements, said that if the effects of the trade war are not mitigated, there is a risk that the global economy will be severely hurt as part of the repercussions. He added that the philosophy and idea of protectionism are also adding tension to the already bitter trade war.
On the other hand, People's Bank of China Governor Yi Gang is calling for a positive and constructive solution in order to resolve the dispute. He added, with a tinge of pessimism, that China is preparing for the worst outcome of the trade war.
Mr. Yi said that China is already making preparations for a trade war, which many in the country believe will last for quite a while. He added that the negative risks of the trade tension will have a substantial effect on the country's economy.
On her speech, International Monetary Fund Managing Director Christine Lagarde supported the views of the majority. She said that the most important part of saving the world economy from collapsing is to de-escalate the tensions between China and the United States.
Perhaps the most chilling of forecast regarding how the trade tensions will affect global economy came from Indonesian President Jokowi. Taking a quote from the popular T.V. series "Game of Thrones," President Jokowi warned that "winter is coming" for the world economy should stakeholders fail to mitigate or de-escalate the growing trade tensions between China and the United States.
According to the main policy-advisory panel of the International Monetary Fund, it will be very hard for the global economy to recovery if trade tensions continue to rise and no solutions are adopted within the near future.