The World Economic Forum (WEF) annual meeting kicked off on Monday in Davos, Switzerland, setting the stage for a week-long series of discussions on global economic challenges, geopolitical tensions, energy transitions, and other international affairs.
A central topic among participants has been the rising trend of protectionism and its impact on global trade patterns. Observers at the WEF expressed concerns that increased trade barriers and tensions, particularly between major economies such as the United States and China, could hinder global economic recovery and growth.
“The rest of the world hopes there won’t be a decoupling between the U.S. and China,” Mina Al-Oraibi, the editor-in-chief of The National, said in an exclusive interview. “It is clear that China is not only a rising power but a significant one. As has historically happened, the current superpower wants to limit that rise, so we see with the U.S., there has been a concerted effort to try to limit China’s rise, especially its technological advancement.”
Trade tensions, including tariff measures and technological restrictions, have been a point of discussion. Participants believe that such actions are counterproductive and could harm both economies.
“A tariff is really not helpful at all for China, and that makes things even worse,” Patrick Foulis, foreign editor at The Economist, told reporters, noting that China has the ability to restart its economy. “In large majorities, Americans recognize that tariffs will increase the prices of goods,” Sam Jacobs, the editor-in-chief of TIME, added.
Washington’s inclination towards protectionism is also affecting globalization. “That cannot work at a time where the U.S. is also the main supporter of capitalism. Capitalism and markets need open borders. There is not only a decoupling problem but there is also a global problem in terms of where the world economy can go if you’re going to have protectionism on the rise,” Al-Oraibi said.
Observers at Davos emphasized the importance of cooperation and open trade to address global challenges effectively. The consensus is that protectionist policies could lead to long-term negative impacts on the global economy.
Reference(s):
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