Growing US-China rivalry will trigger a financial war, warns former Chinese Finance Minister

Beijing: Former Chinese Finance Minister Lou Jiwei issued a clear warning that ‘The growing rivalry between the United States and China will culminate into a financial war.’ In the last few days, signs were visible of an agreement being reached to end the raging US-China trade war. On the sidelines of the developments, a warning coming from the Chinese Finance Minister, currently a part of an influential committee of the ruling Communist Party, gains much significance.

Finance Minister Jiwei highlighted a new conflict between the two states saying, ‘The next step in the frictions between China and the United States is a financial war. It is characterized by the use of long-arm jurisdiction, by various excuses to block specific enterprises, such as the bans on ZTE and Huawei.’

Jiwei went on to claim that ‘The US has been hijacked by nationalism and populism, so will do everything in its power to use bullying measures’. The containment and anti-containment between rivals are inevitable and will be a long-term issue, Jiwei asserted. The former Chinese Minister tried to target President Donald Trump, saying that the tendencies to accuse other countries of sabotage and treason with insufficient evidence, would increase in the United States.

The former Finance Minister suggested that if China wanted to put an end to the US actions against the state, they would have to create alternative systems by establishing cooperation with other countries in the world. At the same time, China should not be in haste to globalise its currency Yuan and continue to maintain limited control over it, Jiwei added. The Chinese Finance Minister’s statements only corroborate the claims indicating the US-China clashes, which began over the trade war were not going to end anytime soon.

The US economists and leaders have begun to signal nothing would be achieved with a possible agreement between the two countries. Although President Trump has taken the initiative for a preliminary agreement, his statements testify that the United States was not ready to compromise in any way. Therefore, it is unlikely that the US-China conflict on trade and other economic levels would end. Furthermore, the decisions of the US agencies against the Chinese companies, only confirm it.

Given the developments, a warning being issued by a senior Chinese leader indicates a long-drawn conflict between the United States and China would ensue.

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