IMF urges China and U.S. to resolve tensions through trade deal
Topics: CHINA U.S. IMF TRADE
It was noted in the IMF report that China and its trading partners should work constructively to better address shortcomings in the trading system.
"Trade tensions between China and the U.S. should be quickly resolved through a comprehensive agreement that avoids undermining the international system and not through a managed trade deal that targets a compression in the U.S.-China trade deficit," the IMF stressed.
At the same time, the fund noted that China can also play an important role and benefit from modernizing the international trade system and further opening up.
The report also says that "It is important that an agreement between two large and systemically important trading partners serves to reinforce WTO rules, is non-discriminatory, and is based on market mechanisms and macroeconomic fundamentals," the IMF added. ■