Both China and Japan believe trade war will only serve to harm the world’s economy

Taro Kono, Japan’s foreign Minister while speaking at the aftermath of an economic dialog held between China and Japan revealed that both countries were in agreement that a trade war between the United States of America and China would only serve to harm the world economy. 

There are serious concerns about a rising trade war between the United States of America and China which involves both countries threatening to impose high trade tariffs on one another. The American President, Donald Trump has criticized Japan’s trade policies and even imposed high tariffs on aluminum and steel, although Japan has yet to respond to his actions.

Taro Kono went further to explained to reporters after the meeting that both China and Japan have a collective understanding that irrespective of where a trade war originates from it would have a significant effect on the success and livelihood of the international economy. This meeting between both countries was the first of its kind in 7 years and the meeting was co-chaired by Kono and the Chinese foreign Minister Wang Yi.

The effect of a full scale trade war between the China and the United States of America has allowed fear creep into the world financial markets as there is a growing concern that such a trade war could adversely affect economic growth and world trade at the same time.

The Japanese Prime Minster Shinzo Abe and the American president are scheduled to have talks during a summit between both countries later this month, it is assumed issues relating to trade will be at the burner of the talks. The Japanese government is anxious to prevent being drawn into discussions over a dual way agreement on free trade which aimed at both currency and monetary policies.

In addition to discussions on trade wars, Kono also revealed that there is a possibility that both China and Japan will be working together on Beijing’s Road and Belt projects. In his words, there is a high probability of collaboration between both countries on several projects which would be executed on a project by project basis inline with international practices and standards.

The Road and Belt Initiative that was introduced in 2013 by the President of China Xi Jinping hopes to build an ultra modern road network that would connect China via sea and land to other parts of the world like Central Asia, Southeast Asian, Africa, Europe and the Middle East.

A promise was made sometime last year by both Ji and Abe make concerted efforts in mending the rather frosty relationship between the two super economic powers in Asia.

Wang is of the opinion that the current change in economic relationship between both countries only goes to signify that new opportunities are abound for both countries. This so happens to be the fist time in 9 years that a Chinese foreign minister would be visiting Japan for bilateral discussions.  Notable amongst other issues discussed was the issue of North Korea.