The UAE minister said the US-China conflict would make markets 'weaker'




"I would say that the UAE's concern over this hostile conflict is a global concern. We are not alone here," UAE Foreign Minister Anwar Gargash told CNBC.



US futures fell on Monday behind a Fox News report, quoting White House trade adviser Peter Navarro as saying that the Chinese trade deal was "out." Navarro later declined to give a statement.
The UAE has strong trade ties with both countries and has long-standing military ties with the US.

The UAE is not alone in its "hostile conflict" between the US and China, the Gulf Foreign Minister told CNBC on Wednesday.

"Whenever we see a clash between Washington and Beijing, markets really shake," Anwar Gargash told CNBC's Hadley Gamble in Abu Dhabi.

"And I think it's clear that the competition between these two legends continues, to some extent, but it's natural. But, I think it's our interest that the competition is more granular. At the same time, there is a very weak international system.

In the wake of the ongoing tensions between the two largest economies in the world, there has been a debate between the global economy and the fight against coronaviruses. President Donald Trump's administration has blamed China for the spread of coronavirus, which Beijing has forcibly rejected.

In November, the U.S. As its presidential election draws to a close, and anti-China rhetoric is gaining momentum in parts of Washington, labor-intensive negotiations between the two powers are in a trade balance.

US futures fell Monday on the back of a Fox News report, quoting White House trade adviser Peter Navarro that China's trade deal has ended. Navarro later declined to make a statement, saying his words were taken out of context, and that the first step was to make the trade deal intact. The news was causing a market loss.

"I speak for lack of confidence. Now we have the Chinese Communist Party, where they lied about the origin of the Chinese virus and spread the epidemic to the world," Navarro said in a statement that day. . The deal was not broken, belief.

Later on Monday, Trump said, "China's trade deal is intact. Let's hope they live up to the terms of the agreement!"

The stagnant state of US-China relations is of concern to the United Arab Emirates, which has strong ties with two countries: the long-standing military and diplomatic ties with the US, as well as the growing economic ties with China, who have become global. Top Investor in the Middle East in 2016.

Trade between the US and China has become very important to the global economy due to economic growth in the global supply chain and basic commodity costs.

"I would say that the UAE's concern over this hostile conflict is a global concern. And we're not alone here," Gargash said.

"Almost everyone has huge economic, investment, and trade ties with China. Like most countries in the world, we all believe that America has the largest network of allies in the world, and we think of it as an important ally of the United States. We would like to see a more cooperative relationship between them. ”

But the minister remains silent about the challenges ahead.

"We have to balance and manage, and this is very difficult. I would say right now, maybe we are managing - like many other countries, but more and more, we look at it and see that it is a big, major problem."

Economists will never see the US and China reach the second stage of the trade agreement, and warn that continued tensions and tariff threats could prevent much-needed economic recovery from coronavirus shutdowns.

The first phase of the deal was signed in January, ending a year-long trade war. If relations deteriorate in the coming months, it may even fall, experts warn.

Gargash is well aware of this and its potential impact on the United Arab Emirates, which has strong trade ties with both countries and pegs its currency with the US dollar.

"This is a balancing act with the majority () of the world," he said. "And we hope that there is a certain consistency in this important relationship between Washington and Beijing."

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