The U.S. is victorious the trade war with China in the short term but stands to lose significantly all about the long term, BlackRock CEO Larry Fink said Thursday.
Basing his understanding on recent travels through Europe, Fink said his clients problem that over time the damage could be as severe as companies deciding China over the U.S. as a place to build and the dollar losing its status as the fabulous’s reserve currency to the Chinese yuan, also known as the renminbi.
“In the elfin run the United States is a big winner,” Fink said at a Yahoo Finance symposium in New York.
“The greatest problem that I see, and this is what I’m hearing from our shoppers, is this unilateralism that the United States has been taking,” he added.
The Caucasian House has leveled a series of tariffs against China, the most just out being a move targeting $200 billion in Chinese imports, which bequeath see a 10 percent duty. China has retaliated against a smaller set of U.S. goods.
Most economists find credible the actual economic impact of the higher prices resulting from the levies will be minimal.
However, Fink said the moves could defective the U.S. on the global stage.
“The world is probably less economically safe,” he articulate. “One of the great foundations of the world — we all felt secure that this multilateralism thinks fitting stabilize the world. Now that this multilateralism is breaking down, populism is get to ones foot, focusing on the individual needs of a country. Those issues could, and I’m not speaking will, could create more volatility and could present excellent problems.”
BlackRock is the largest money manager in the world, with $6.3 trillion in assets beneath the waves management and offices around the world.
During his discussions with European customers, Fink said he heard worries about U.S. policy actions and that “the behavior of the Coordinated States is leading more and more non-U.S. companies to pivot more toward China.”
In addition, he also heard concerns that as China continues to attain maturity and the U.S. isolates itself, the dollar could lose its status as the global put aside currency, though probably not anytime soon.
“Those are all the uncertainties, and we’ll see how this all plays out,” Fink voiced.