US trade spat needs ‘constructive solutions’: China central bank

Author: 
AFP
ID: 
1539490214018352100
Sun, 2018-10-14 03:55

NUSA DUA, Indonesia: China’s central bank governor Sunday
sought to cool the temperature on a brewing trade-and-currency war
with the United States, calling for “constructive solutions” as
the spat threatens to knock the world economy.
Speaking on the last day of the IMF-World Bank annual meetings in
Bali, Yi Gang warned that the stakes could hardly be higher and
cautioned that a clash between the world’s two biggest economies
was a “lose-lose” situation.
“Trade tensions…cause negative expectations, negative
uncertainties,” he told a seminar with other top central bankers
on the Indonesian holiday island.
“There are tremendous uncertainties ahead of us.
“The whole world should work together to seek constructive
solutions,” he added.
Yi said he had spoken to central bank governors and other top
officials from a string of nations amid a tit-for-tat US-China
tariff battle and Washington’s accusations that China was
unfairly pushing down the value of its yuan currency to boost
exports.
His comments come a day after the IMF warned that the “window of
opportunity” to keep global growth on track was narrowing as the
US-China spat threatens to boil over and emerging markets feel the
pinch from higher US interest rates.
Tensions have soared recently with President Donald Trump’s
administration rolling out billions of dollars in tariffs against
China in a bid to tackle its trade deficit and rein in what
Washington considers unacceptable Chinese trade practices.
Treasury Secretary Steven Mnuchin earlier downplayed the global
concerns expressed at the meetings, saying the world would benefit
if Beijing is forced to changes its trade policies.
But he said he had told Yi this week about his concerns over the
weakness of its currency.
Mnuchin, speaking earlier on the Bali meeting’s sidelines,
declined to comment on whether Washington would declare Beijing a
“currency manipulator” in a Treasury report due out next
week.
That would be a first for China, triggering a process that could
lead to punitive steps.
Attention has begun to turn toward hopes that Trump and Chinese
President Xi Jinping could meet on the sidelines of the G-20 summit
next month in Argentina and reach some sort of agreement that would
reduce trade tensions.

Main category: 

China manufacturing weakens amid US tariff battleUS-China trade
talks must cover currency, US Treasury chief says
Source: FS – All-News-Economy
US trade spat needs ‘constructive solutions’: China central bank