Business
22:17, 08-Apr-2018
Economist: Barriers against one country amounts to anti-globalization
["china"]
Share
Copied
In today’s globalized economy, friction with one country may create a knock-on effect, shaking up ties with other countries across the world.
Triggered spill-over tensions will deeply threaten globalization, according to Fan Gang, an economist who is a member of the monetary policy committee at China's Central Bank.
We share the same supply-chain. If one link on the chain gets hit, the impact will be felt up and down stream. That’s why barriers against any one country amounts to anti-globalization, Fan explained.
The US stock market plunged after US President Donald Trump imposed tariffs on Chinese goods. Fan said stock markets always “panic” when big news breaks, because “the calculation of stock prices is not only what the US takes, but also prices in China's countermeasure”.
According to Fan, there is no need for concern over the stock market, since market confidence is often an immediate reaction to news or expectations for the future. “They will recover,” Fan added.
Fan suggested that China should continue to push globalization forward, seeking alternatives with emerging Asian partners to minimize the effects of trade disputes. Even though we have trade friction with the US, we can do business with other countries, Fan told CGTN.