Japan-China Ease U.S. Trade War Fears
Japan and China both concur that a potential trade war with the US will undoubtedly create chaos in the global economy, according to Reuters.
US President Donald Trump ran his election campaign on promises of protectionism and securing value for the US.
This has led to President Trump raising tariffs on steel and aluminium.
Despite the move from the US, there has yet to be any counterstrike, and with China and Japan striking a calm tone, fears of a trade war have become somewhat abated.
Japanese Foreign Minister Taro Kono said: “We [Japan and China] have [a] 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.”
While the US is the world’s largest economy, China and Japan make up the second and third biggest respectively.
Any trade war between the countries would have far-reaching, global ramifications, with financial markets having been spooked already by the threat of turbulence.
US President Donald Trump and Japanese Prime Minister Shinzo Abe are due to have a meeting shortly, after which further details on the state of play will be revealed.
While the US is fostering an approach of protectionism, China is building its One Belt One Road (OBOR) vision, which Japan has stated it is willing to cooperate with.
OBOR aims to revive the historic ‘maritime silk road’ that stretches from Eastern China to Europe, via the Middle East and Africa.
The initiative is central to Chinese President Xi Jinping’s premiership.