G-20 to Discuss Global Impacts of U.S.-China Trade Tensions

July 15, 2018

Tokyo- Finance ministers and central bank chiefs from the Group of 20 advanced and emerging economies are expected to discuss impacts of U.S.-China trade friction on the global economy at their two-day meeting in Buenos Aires from Saturday, informed sources have said.

Participants will also examine risks related to an exodus of capital from emerging economies and falls of their currencies reflecting interest rate hikes in the United States, according to the sources.

From Japan, Finance Minister Taro Aso and Bank of Japan Governor Haruhiko Kuroda will attend the meeting.

The administration of U.S. President Donald Trump has announced a plan to impose an additional tariffs of 10 pct on 200 billion dollars worth of Chinese products. China is set to retaliate.

The G-20 officials are expected to express concerns over the escalating trade tensions between the world's two biggest economies as the situation overshadows the global economy, the sources said.

The outflow of funds from emerging economies resulting from the U.S. rate hikes is another source of concern for the world economy.

Argentina and Turkey have seen their currencies fall sharply. China's yuan is also losing ground.

Against the background, impacts of advanced economies' monetary policies on other economies are also likely to be on the agenda at the Buenos Aires meeting, the sources said.

The G-20 members are the Group of Seven advanced countries--Britain, Canada, France, Germany, Italy, Japan and the United States--and Argentina, Australia, Brazil, China, India, Indonesia, Mexico, Russia, Saudi Arabia, South Africa, South Korea, Turkey and the European Union. Jiji Press