Decoupling of China, US disastrous for world economy: Chinese Ambassador

Chinese Ambassador to the US Cui Tiankai has warned that the so-called "decoupling" of Beijing and Washington, who are locked in a damaging trade row, would be disastrous for both economies and the world economy at large.

Speaking at the reception for the 40th anniversary of China-US diplomatic relations and the Chinese New Year at the Chinese Embassy here on Wednesday, Cui said history proved that cooperation serves the interest of both countries.

"China will open its door wider to the US and look forward to more cooperation at various levels," he was quoted as saying by Xinhua news agency, adding that both countries to remain open to each other and become more connected.

The trade war has seen both sides levy tariffs of billions of dollars worth of one another's goods. In December, both countries agreed to hold off on new tariffs for 90 days to allow for talks.

They have a deadline of March 1 to strike a deal, or the US has said it will increase tariff rates on $200 billion worth of Chinese goods from 10 per cent to 25 per cent.

The trade war will have a number of negative effects on global trade, especially within certain markets, according to a UN study.

"New global challenges keep coming up. More than ever before, the world needs China and the US to work together.

"The two countries have interacted on such an extensive scale and influenced each other in so many ways that each is stronger and better than it would be otherwise," the Ambassador said.

Cui said daily trade between the two countries was over $1.5 billion and added that more than 14,000 people fly between the two countries every day for work, study and leisure.

"We are the two largest economies in the world... Both will be much more prosperous if we cooperate with each other."

Cui also extended an invitation to Washington to participate in the Second Belt and Road Forum for International Cooperation, which will be held in China in April.

US Secretary of Commerce Wilbur Ross, National Security Council Senior Director for Asian Affairs Matt Pottinger, a number of members of Congress and about 750 guests attended the reception.

China and the US formally established diplomatic ties on January 1, 1979.

--IANS

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