China, Japan presume trade war harm to global economy

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China and Japan both presume that a trade war will significantly ail global economy, Japanese Foreign Minister Taro Kono said on Monday following a high-profile economic discussion between the countries third and second on the world’s largest economies list.

Suspected US-China trade war is developing concerns in the financial sector, observing increasing tariff threats between the two. US President Donald Trump has been criticizing Japan on trade and has hit the country with steel and aluminum tariffs, but no counter-tariff has been sent back.

“We have 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,” said Kono after the dialogue.

Agitation spread among financial markets on the fear that a full-blown US-China trade war will destroy international trade and economic development.

Trump and Japanese Prime Minister Shinzo Abe are expected to discuss trade issues on an upcoming summit later this week. Tokyo is eagerly avoiding a dialogue on a two-way free trade agreement which aims to increase market access and change policies in finances and currency.

Japan could also possibly work with China on its Belt and Road projects according to Kono.

“It is quite possible that Japan cooperates with China on various (Belt and Road) projects on a case by case basis where international standards are met,” Kono added.

Chinese top diplomat and foreign minister State Councillor Wang Yi, who stayed in Japan as a diplomat and ambassador for eight years, said changing economic atmosphere signals fresh opportunities.

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