“And clearly, I would say that the competition between these two giants will continue, and, to some extent, this will be natural. But I think we have interest in this competition to be more nuanced and at the same time, not undermine what is already an international system very low. ”
The conversation, covering geopolitics, the global economy and the fight against the coronavirus took place in the context of the ongoing tensions between the two largest economies in the world. The administration of president Donald Trump has accused China of the spread of the coronavirus, that Beijing firmly rejected.
While the United States is approaching its presidential election in November, and the rhetoric of anti-chinese in some parts of Washington intensifies, the trade agreement is carefully negotiated between the two powers is at stake.
Not later than Monday, futures americans have fallen on the back of a report from Fox News, which cited the business advisor of the White House, Peter Navarro, saying that the trade agreement with China was ” finished “. Navarro has subsequently denied having made this statement and said that his remarks had been taken out of context, adding that the trade agreement of the first phase remained intact. The markets have recouped their losses on this new.
“I simply spoke of the lack of confidence that we now have towards the chinese communist Party after having lied about the origins of the virus, chinese and imposed a pandemic in the world,” said Navarro in a press release that day, noting that while the trade case may not be broken, trust was.
Later on Monday, Trump tweeted: “The trade agreement with China is fully intact. I hope that they continue to comply with the terms of the agreement! ”
The precarious state of relations between the usa and china remains a concern for the united arab Emirates, which have close ties with the two countries: a military alliance and diplomatic long-standing with the United States, as well as an economic relationship increasingly with China, which in 2016 became the first investor in the world in the Middle East.
The trade between the United States and China is of great importance for the world economy, since the international supply chains and the economic growth up to the cost of basic commodities.
“I would say that the concern of the united arab Emirates about this confrontation hostile is a global concern. And we are not alone here, ” said Gargash.
“Almost everyone has huge financial relations, investment and trade with China. Like many, many countries in the world, we all recognize that America has the largest network of allies in the world and we consider ourselves as an important ally of the United States. So we clearly see the confrontation, and it worries us. We would like to see a more co-op between Washington and Beijing. ”
But the minister was sober about the challenges ahead.
“We have to balance and manage, and it is very difficult. I would say at this moment in time, it may be that we manage – like many other countries, but more and more, we look at this and see that this will be a major problem, major . ”
Economists do not see the United States and China reach phase two of the trade agreement so early, and have warned that the tensions and threats tariff persistent could slow the economic recovery if necessary after the closure of the coronavirus.
The first phase of the agreement has been signed in January, stopping the commercial war which raged for over a year. But even that could collapse if relations were deteriorating in the coming months, warned the experts.
Gargash is well aware of it and its potential impact on the WATER, which have strong trade relations with the two countries, and whose currency is linked to the u.s. dollar.
“It is a balance between which the majority of (the) countries of the world have to deal with it,” he said. “And we hope that there will be some stability in this relationship is very important between Washington and Beijing. “