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Japan, China agree trade war will harm global economy

Reuters  |  TOKYO 

(Reuters) - and agree that a trade war will have serious consequences for the world economy, Japanese Taro said on Monday after a high-level economic dialogue between the world's third- and second-largest economies.

Concern is growing about a trade row between and the in which the two nations have threatened each other with tariffs. has been criticised by U.S. on trade and been hit with tariffs on and aluminium, but it has not yet threatened counter-tariffs.

"We have shared understanding that a trade war, no matter which country has brought it about, would have a very large impact on the prosperity of the international economy," told reporters after the first such dialogue in more than seven years.

and the Chinese government's top diplomat, Wang Yi, co-chaired the meeting. Wang is also

Financial markets have been roiled recently over fears that a full-blown U.S.-trade war could shatter global trade and economic growth.

Trade issues will likely be at the forefront of a summit between Japan's and Trump later this week. is eager to avoid being pushed into talks on a two-way free trade agreement aimed not only at market access but at monetary and currency policies.

also said it was possible that works with on Beijing's Belt and Road projects.

"It is quite possible that cooperates with on various (Belt and Road) projects on a case by case basis where international standards are met," said.

Chinese Xi Jinping's Belt and Road Initiative, unveiled in 2013, aims at building a modern-day Silk Road connecting by land and sea to Southeast Asia, Central Asia, the Middle East, and

Abe and Xi pledged last year to reset the sometimes touchy relationship between Asia's two largest economic powers.

Wang, who spent eight years in as a including three as ambassador, said the changing economic climate presented fresh opportunities.

"After reopening these talks, we're both standing at new starting points to discuss future cooperation that will, I hope, lead to fresh economic growth for both nations," Wang said at the start of the economic dialogue.

Wang is the first Chinese to visit in a bilateral context in nine years. He and discussed a broad range of issues, including North Korea, on Sunday night.

(Reporting by and Kiyoshi Takenaka, Writing by Elaine Lies; Editing by and Jacqueline Wong)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Mon, April 16 2018. 13:18 IST
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