Fair trade and opening-up are tools to avoid 'Japan traps'
CGTN Global Business
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World leaders at the G20 summit expressed hope of defending the global trade rules in Osaka, Japan on Friday. 

Tomo Nakamaru, president of Macro Investment Research Inc. and former World Bank economist, said fair trade and opening-up would benefit the global economy, warning that trade disputes would only harm the prosperity of the global economy and world peace.

Japan and the U.S. experienced a series of trade frictions in the 1980s. In the early 1990s, the Japanese asset price bubble collapsed. "After that, we have been struggling to recover for more than 30 years," Nakamaru said, adding that Japan can be a bridge between China and the United States. 

Nakamaru noted the importance of adopting an open and free system, which would help countries to avoid the so-called "Japan traps" – the old disastrous road Japan once walked through.

VCG Photo

VCG Photo

"I hope China can avoid the Japan traps," he told CGTN, noting that China would be welcomed by everyone to become a stronger and greater world leader if it continues to insist on fair trade and opening-up.

Meanwhile, Chinese President Xi Jinping spelled out China's position on the global economy and trade at the Leaders' Special Event of the G20 Osaka summit. Nakamaru described the speech as sensible and hoped that China and the U.S would settle their trade frictions, which act in opposition to the prosperity of the global economy as well as world peace.

"President Xi's speech is acceptable to almost everybody. Prime Minister Abe has also mentioned that this is based on a free and open system. That should be recommended by every nation," he said.

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President Xi also said that it was important to maintain the integrity and vitality of the global industrial chains, adding that all member countries need to encourage the movement of information, technology and human resources, and no country can develop by shutting its doors.

Nakamaru said he was impressed by Xi's remarks, as he called for building trust in the technology sector as well as setting up transparent and consistent rules to promote the development of the digital industry. 

In terms of reforming the World Trade Organization, while everyone agreed that it needs to happen, nothing has been done to break the logjam because the U.S. is holding up the process. Nakamaru said that he expects the U.S. to change in the future and stressed that "a fair, transparent and consistent rule of game" should be created and agreed upon by all parties.