Rising US-China trade tensions may derail post-Coronavirus Economic Recovery, says IMF

The growing US-China tensions in trade, tech and geopolitical spheres may hamper post-coronavirus economic recovery alongside other risks such as the second wave of the pandemic and social inequality, the International Monetary Fund (IMF) said on Wednesday.

"Escalating US-China tensions spanning trade, financial flows, technology, and geopolitics could pose major economic risks, given Asia's major role, among other things, in global value chains ... A rise in social unrest triggered by the pandemic's disproportionate impact on the poorest and most vulnerable could compromise recent hard-won gains," the IMF said in a Regional Economic Outlook for Asia and the Pacific.

The relations between the United States and China have significantly deteriorated under the administration of US President Donald Trump after Washington accused Beijing of being engaged in unfair trade practices and of making timid efforts to contain the COVID-19 outbreak.

Tensions between the two countries have also soared over China's activity in the South China Sea. China has accused the US of trying to increase its presence in the South China Sea by sending navy ships to conduct freedom of navigation operations in the area.

The US is also undermining peace and stability across the Taiwan Strait after a US warship crossed the waterway, China said. But despite Beijing's accusation of violation to its sovereignty, the US insists the strait is part of international waters and its "freedom of navigation" operations are in line with international law.

Recently, the US blacklisted 24 Chinese compes, saying that they are helping the ruling Chinese Communist Party construct artificial islands in the South China Sea, which the US sees as a military provocation. (/Sputnik)

( With inputs from ANI )