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US-China trade row not a threat to world economy: Mnuchin

AFP  |  Nusa Dua 

pushed back Saturday against warnings that the Washington's trade fight with imperils the world economy, saying that pushing to open up will be good for all.

The IMF has warned this week at annual meetings in that the escalating US-trade confrontation would hobble global economic growth, as the fund lowered its forecasts for this year and next.

But told reporters on the Indonesian resort island that Donald Trump's drive to punish with tariffs to encourage it to adopt fairer trade practices would have the opposite affect.

"Our objective with China is very clear: it's to have a more balanced trading relationship," said.

"I think that if we are successful, this is very good for US companies, US workers, Europeans, Japan, all of our other allies, and good for China."

Mnuchin said, however that the IMF's warnings were "all the more reason for China to be incented to address these issues with us".

The IMF Tuesday cut its outlook for global GDP growth by 0.2 percentage points to 3.7 per cent for 2018 and 2019, saying that "everyone is going to suffer" from a clash between the world's two biggest economies.

Tensions have soared in recent months with rolling out billions of dollars in tariffs against China in a bid to tackle its trade deficit and rein in what views as unacceptable trade practices by the Asian giant.

"Our objective is to increase exports and have a more balanced, fair relationship where our companies can do business there on terms that are similar to how they can do business (in the US)," Mnuchin said.

"(A) free fair and reciprocal relationship."

Attention has begun to turn toward hopes that Trump and Chinese could meet on the sidelines of the summit next month in and bury the hatchet with some sort of agreement.

"I don't think any decision has been made in regards to a meeting," Mnuchin said.

"To the extent that we can make progress toward a meeting, I would encourage that and that's something we are having discussions about.

"But for the moment, there's no preconditions. The will decide on that.

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

First Published: Sat, October 13 2018. 13:45 IST