U.S. and China trade divisions threaten a ‘reversal' for global economy, IMF official warns

Tensions Between Economic Blocs Threaten Global Trade Cooperation, Says IMF Official #

Differences between U.S.-led Western and China-aligned economic blocs are jeopardizing global trade cooperation and economic growth, warns a top official with the International Monetary Fund (IMF). In a speech at Stanford University, IMF Deputy Managing Director Gita Gopinath stated that events such as the global pandemic and Russia’s invasion of Ukraine have disrupted global trade relations similar to the Cold War era. Gopinath underscored the trend of countries picking sides between China and the U.S., potentially leading to a significant reversal of the gains from economic integration.