Translation. Region: Russian Federal
Source: People’s Republic of China in Russian – People’s Republic of China in Russian –
Source: People’s Republic of China – State Council News
Moscow, June 17 /Xinhua/ — The growth of protectionism and the current escalation of tariff restrictions are a consequence of the West’s attempts to counteract the growing influence of the Global South countries on the world economy, Deputy Prime Minister of the Russian Federation Alexander Novak said in an interview with the Vedomosti newspaper.
According to him, since the early 2000s, the economic center of the world has been shifting from the West to the East. Developing countries are gaining a much greater role in the global economy. “Of course, such a situation does not suit those who are used to dictating their terms. And we increasingly see how, in order to counteract the growing influence of developing countries on the world economy, Western countries are making active attempts to maintain the status quo on the world stage and preserve their leadership,” A. Novak noted.
As a consequence of this, the strengthening of protectionism in the national economy and the revision of the existing results of globalization are coming to the fore, the Deputy Prime Minister of the Russian government noted. The main steps in this direction, he believes, were the actual destruction of the multilateral mechanisms of the World Trade Organization, unilateral tariff and non-tariff restrictions on developing countries under the pretext of “threats to national interests,” and the introduction of various sanctions against competitors.
At the same time, according to A. Novak, it is important to understand that “tariffs are just a tool, and the goal is not at all to redirect trade flows. The goal, apparently, is to return key production chains to the native territory of the United States, to return production, competencies, infrastructure. Localization of value chains is what the Trump administration wants to achieve.”
However, the “destabilizing US tariffs,” according to the deputy prime minister, will probably not have catastrophic consequences for the global economy.
“Most likely, the situation with trade wars will not be universal. Some commodity flows will be redirected, as usually happens during trade wars. At the same time, a repeat of the pandemic situation, when world trade stopped and trade flows collapsed, will not happen. Therefore, the baseline forecast scenario approved by the Russian government assumes that the growth rate of world trade will slow down, but will not go into recession,” A. Novak emphasized. -0-