Australia warns of collateral damage from TrumpXi trade war

first_img Australian Prime Minister Scott Morrison on Wednesday warned that “collateral damage” from trade spats between China and the United States were hurting smaller countries and threatening the global economy. In an usually public warning to allies in Washington, Morrison said the “world’s most important bilateral relationship — the US-China relationship” had become “strained”. “Trade tensions have escalated. The collateral damage is spreading. The global trading system is under real pressure. Global growth projections are being wound back,” he said, speaking in Sydney. “The impact of any further deterioration of the relationship will not be limited to these two major powers,” he added. His comments come on the eve of a G20 summit in Osaka, Japan, that will be overshadowed by talks between Chinese President Xi Jinping and US counterpart Donald Trump aimed at easing tensions between the world’s two largest economic powers. Decades of cautious engagement between China and the United States have been cast aside in the Trump-Xi era, replaced by two geopolitical behemoths openly tussling for economic, diplomatic and military influence. In Australia, that has caused a dramatic erosion in confidence about both Washington’s and Beijing’s willingness to act responsibly in the world. Morrison’s conservative government was re-elected in May, largely on promises of continuing the Australian economy’s almost 28 years of near-continuous growth. But that growth is starting to falter, and with a downturn looming, his government has played up the negative impact of an external shock from US-China tensions. Economists say that is more of a risk for the future, blaming current woes on structural weaknesses at home. RELATED Australian Prime Minister Scott Morrison (file photo). Published on US-China trade spat, Iran tensions to dominate weighty G20 G20 Summit: PM Modi to hold bilaterals with Trump, Macron COMMENTScenter_img June 26, 2019 G-20 SUMMIT SHARE COMMENT SHARE SHARE EMAILlast_img