A leading advisor to the Chinese banking regulator says that the outbreak of a trade frictions between China and the United States marks the emergence of a “new order” for the global economy.
Trade tensions between China and the US have reached fever pitch following the launch of the 301 investigation by the Trump administration, and the mooting of a 25% tariff on up to $100 billion in Chinese imports.
The move has prompted China to respond with tariff proposals of their own, as well as file dispute proceedings with the World Trade Organization.
Andrew Sheng, chief advisor to the Chinese banking regulator, says that escalating trade tensions between China and the US are the sign of a “new order” for the global economy.
“The signal must be there is a new order emerging, and how that new order emerges will depend upon the wisdom, the patient and the understanding of the top leaders,” said Sheng to CNBC at the sidelines of the European House Ambrosetti Forum in Italy.
According to Sheng the world economy is still reeling from the “massive labour shock” created by globalisation.
“We are now seeing a much more complex, much more subtle (and) much more nuanced search for the new order,” he said.
While the trade dispute is a “very confusing situation,” Sheng said that he is optimistic about the ability of China and the US to resolve the impasse via “a sensible and measured way of negotiations.”