Published 05:31 IST, October 22nd 2020
IMF warns of negative impact of deteriorating US-China trade relations on COVID recovery
On Wednesday, October 21, IMF said that the growing tensions between the US and China trade relations could hamper the recovery of the global economy post COVID
On Wednesday, October 21, the International Monetary Fund (IMF) said that the growing tensions between the US and China trade relations could hamper the recovery of the global economy in the post COVID-19 era. As per reports, the IMF also stated that there were multiple other risks that could possibly hamper states as they try to recover from the impact of COVID-19 such as a second wave of the virus which Europe is currently experiencing, as well as social inequality.
Deteriorating trade relations hampering post-COVID-19 Economic Recovery
In a Regional Economic Outlook for Asia and the Pacific, the IMF said, "Escalating US-China tensions spanning trade, financial flows, technology, and geopolitics could pose major economic risks, given Asia's major role, among other things, in global value chains ... A rise in social unrest triggered by the pandemic's disproportionate impact on the poorest and most vulnerable could compromise recent hard-won gains."
Under the Trump administration, US-China relations have swiftly deteriorated. The US and Donald Trump have accused Beijing of taking part in unfair trade practices and on multiple occasions blamed China for the COVID-19 pandemic, claiming that the Asian country did not do enough to stop the initial spread of the virus. In addition, China’s increased activity in the South China Sea, as well as the US military operations in the South China Sea, have contributed to deteriorating relations.
Recently, China has also threatened to detain US nationals in response to the Justice Department's prosecution of Chinese military-affiliated scholars. These warnings from Beijing come after the US began detaining Chinese scholars in the United States. US Justice Department has claimed that the arrested scholars had tried to hide their active duty statuses with the People's Liberation Army (PLA) from US authorities to justify the detention.
(With ANI inputs, Image ANI)
Updated 05:31 IST, October 22nd 2020