World Economic Forum gets China’s perspective on trade tensions

While Chinese Vice-President Wang Qishan may have been trying to persuade the global business elites gathered last week at the World Economic Forum in Davos that his nation’s economy remains resiliant, U.S. shippers may not be buying his outlook. 

“One thing that is certain is that China’s growth will continue and be sustainable,” he said, adding that many countries – including the U.S. – “are increasingly looking inward” when making [trade] policies.

Nariman Behravesh, Chief Economist, IHS Markit, is among those taking issue with other assertions made by the Chinese vice president.

Here is an insight he shared with LM today:

“Wang Qishan said that China’s  current success should be viewed in the context of the country’s long history. He said that the Chinese Communist Party succeeded in transforming a weak agrarian economy into the world’s second largest economy. He made frequent references to China being on a “socialist path with distinctive Chinese features.” He also made references to imbalances in China’s economy and the need for structural reforms. This is an area where China’s success has been limited. 

Wang said that western economies put too much importance on efficiency and not enough on equality.  This is a little ironic since China has had one of the most rapid increases in inequality in the past couple of decades.”

As noted in our annual Rate Outlook, logistics managers remain concerned about the ongoing trade tensions with China, and how to mitigate risk if the situation worsens.