Prolonged trade war could lead to another financial crisis: China’s US ambassador Cui Tiankai
- Cui Tiankai warns of risks to global markets
- Defends Beijing against charges of forced technology transfer and intellectual property theft
China’s Washington ambassador has warned that a prolonged trade war between the world’s two largest economies risks fragmenting the global market and questioned if the US could weather another financial crisis.
Cui Tiankai raised the spectre of a repeat of the 2008 global financial crisis in an interview with The Wall Street Journal on Monday, ahead of the high-stakes meeting between US President Donald Trump and Chinese leader Xi Jinping, scheduled for the G20 summit in Buenos Aires later this week.
“Although the current economic situation in the US is good, people cannot rule out the possibility of another – I don’t want to use the word ‘crisis’ – a similar situation to what happened 10 years ago,” Cui said.
“But, under the current circumstances, do you think people will still be as ready and open as they were in 2008 to have effective international policy coordination and coordinated stimulus actions? I’m not sure about that.”
Will Donald Trump and Xi Jinping rekindle their ‘great chemistry’ at the G20 summit?
While markets are seeking a ceasefire from the G20 meeting, analysts say it will be unlikely for the tête-à-tête between the two leaders to yield a substantive deal, with both sides deadlocked on key issues such as reciprocal market access and intellectual property protection.