Asian countries denounce ‘real threat’ of global trade war

Asian countries have voiced concern about the potentially devastating impact of a US-China trade war, with ministers calling for the acceleration of talks for a gigantic Beijing-backed free-trade deal that excludes the United States.

Fear that a simmering trade spat between the world’s top two economies could spiral into a full-blown trade war — with painful consequences for China’s neighbours — was among topics dominating discussion at a regional summit in Singapore on Saturday.

Tit-for-tat tariffs have fuelled months of tensions that were notched up  yesterday as Beijing threatened to impose levies on $60 billion of American goods, from beef to condoms.

The measures, which the White House ridiculed as “weak” but China said were “fully justified”, came after Washington said it would increase the rate of additional tariffs on Chinese goods worth $200 billion.

The prospect of a trade war is a “real threat” to Asian countries, Malaysian Foreign Minister Saifuddin Abdullah told reporters today on the sidelines of the summit.

“The threat is making many countries very concerned and... Is becoming more complex,”he said.

Other top Asian diplomats at today’s forum, hosted by the Association of Southeast Asian Nations (ASEAN), spoke out against protectionism, warning that it places the region’s development in jeopardy.

“Rising anti-globalisation and trade protectionism among major countries is fuelling tensions and threatening our aspirations for sustained economic growth,”said South Korean Foreign Minister Kang Kyung-wha.