Beijing is criticizing President Donald Trump\u2019s threats to levy tariffs on Chinese goods<\/b>
\nTrade tensions between the U. S. and China risk eroding business and investor confidence, even as global growth enjoys its best upswing in years.
That\u2019s the message being conveyed to finance ministers and central bankers from around the world gathered in Washington for spring meetings of the International Monetary Fund. Trade is expected to dominate discussions as the world\u2019s two-biggest economies exchange threats of tariffs and other protectionist measures.
\u201cWhat is extraordinarily meaningful is the questioning of the overall system under which operators have been operating in for decades,\u201d IMF Managing Director Christine Lagarde said Thursday at a press conference. \u201cIt\u2019s the confidence that risks being eroded.\u201d
The fund on Tuesday left its forecasts for global growth this year and next at the 3.9 percent it estimated in January \u2014 the world economy\u2019s deepest and broadest upswing since 2011. The U. S. argues China needs to lower its barriers to imports and foreign investments, while Beijing is criticizing President Donald Trump\u2019s threats to levy tariffs on Chinese goods.
In a sign that the tensions won\u2019t be easing anytime soon, White House Council of Economic Advisers Chairman Kevin Hassett said the world should put pressure on Beijing and called on other countries to hold the Asian nation to task on trade.
\u201cThe entire world community needs to urge them to change\u201d their behavior, he said at an event hosted by the Institute of International Finance.
The hawkish stance was backed up by U. S. Vice President Mike Pence\u2019s chief economist, Mark Calabria, who urged China to move toward a market-based economy that plays by international rules.
\u201cWe certainly want to avoid a trade war, but you have to credibly signal that you are going to be willing to put some pain both on the other side as well as yourself,\u201d Calabria said.
Chinese officials, including People\u2019s Bank of China Governor Yi Gang, have so far kept a low profile during the meetings, though the government in Beijing has already made clear it will retaliate to any U. S. protectionism. Commerce Ministry spokesman Gao Feng said Thursday at a briefing in Beijing that the government is \u201cready to take necessary steps\u201d to protect domestic companies.
Ilan Goldfajn, Brazil\u2019s central bank chief, said he\u2019s worried that trade disputes could upset financial markets and derail the steady global expansion.
\u201cI\u2019m concerned these types of conflicts will lead to risk-off in markets, high premiums, less capital flows and at the end of the day the benign environment that we\u2019ve been enjoying for the last few years will not continue,\u201d Goldfajn said in an interview.
While such a backdrop poses headwinds for confidence, there remains optimism among some officials that a deal will be reached to avoid tensions snowballing into a full blown trade war.
Australian Finance Minister Mathias Cormann said he expects an agreement to be reached. Sri Lanka\u2019s junior Finance Minister Eran Wickramaratne described the dispute as a \u201cglitch\u201d that will pass.
Chilean Economy Minister Jose Ramon Valente was among those to play down concerns.
\u201cThere is a trend toward free trade, opening, and integration of countries, and these are potholes we find along the way,\u201d Valente told Bloomberg TV.<\/p>\n

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