Monday, 18 October 2021

US-China tensions are ‘threat’ to world economy: IMF chief

LONDON: The world’s two biggest economies, the US and China, have been at odds with each other since US President Donald Trump imposed tariffs on $250 billion worth of Chinese goods, citing concerns that Chinese trade practices were hurting American companies while demanding an adjustment to the terms of trade between the two countries.

International Monetary Fund Head, Christine Lagarde, has warned that the US-China spat over trade represents a threat to the global economy. Speaking following the Paris Forum on the indebtedness of developing nations, the IMF Head said the recent “rumours and tweets” are not conducive to any agreement.

Lagarde added that it was imperative that the tensions between the two superpowers be resolved in order to avoid a slowdown in global growth.

“We in the IMF believe that it is imperative that trade tensions are resolved satisfactorily for everyone because today it is obvious that the tensions between the United States and China are the threat to the world economy”, said Christine Lagarde to the press on the sidelines of an international conference in Bercy.

According to the IMF chief, it is crucial to move towards the “adoption of a clear legal and regulatory framework” that will allow companies to continue pursuing their activities.

Lagarde underlined that it was important to get rid of uncertainty in this issue.

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