The global head of sovereign ratings at Fitch has said he is “fearful” that the trade standoff between China and the United States will not be resolved soon.
Speaking on a panel at the St. Petersburg International Economic Forum (SPIEF) in Russia on Thursday, James McCormack told CNBC’s Geoff Cutmore that the trade debate has morphed into a situation that may harden positions.
“I am fearful that we are in for a long standoff between China and the United States,” said McCormack.
“There is a risk that we end up with the two biggest economies operating in parallel tracks in many regards and not in a cooperative way and the world economy will suffer from that.”
Fitch’s top analyst on country risk added that the United States had gone a long way from simple concerns about trade imbalance figures which bothered few in Congress or the business community.
McCormack said White House officials who wanted to take China on, finally felt momentum when the U.S. corporate sector started to complain about losses of intellectual property via forced tech transfers.
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