IMF Deputy Managing Director Gita Gopinath in December said that if the world economy and trade fragmented into two blocs – implying predominantly the U.S. and Europe in the West and China and Russia in the East – global gross domestic product could be cut by 2.5% to 7%.
“A trade war, a science and technology war, exercises in decoupling or de-risking are, in essence, the politicisation of economic and trade issues,” said Wang Wenbin, a Chinese foreign ministry spokesperson.
“This is immoral and unsustainable and ultimately affects the overall interests of the international community.”
The world’s two biggest economies used to be each other’s largest trading partners. While both governments publicly oppose decoupling, China is now trading more with Southeast Asia, and the U.S. with neighbouring Canada and Mexico.
China has imposed exports curbs on a number of critical minerals, such as graphite – of which it provides 67% of global supply – citing national security concerns.
The United States opposes export controls announced by China on gallium and germanium, metals used to produce semiconductors and other electronics.
Meanwhile, the U.S. has placed restrictions on the export of semiconductors and the equipment to make them to China, also citing security concerns.
“China is willing to work with all parties to advocate inclusive economic globalisation, resolutely oppose anti-globalisation and oppose all forms of unilateralism and protectionism,” Wang said.
Source: Economy - investing.com
