President Moon Jae-in suggested that we should find a way out of the "prisoner’s dilemma," in which the global economy is being pushed toward a contractionary equilibrium due to trade disputes,” at the first Group of 20 (G20) summit session Friday. His remarks, in an apparent reference to intensifying trade conflicts between the United States and China, came as Chinese President Xi Jinping warned against protectionism at the session.
“We should move toward an expansionary equilibrium, in which free trade can benefit all,” President Moon said in the session on the global economy and trade held in Osaka, Japan.
“The International Monetary Fund (IMF) and the Organization for Economic Cooperation and Development (OECD) have recently lowered their outlooks for global economic growth, citing trade disputes and the spread of protectionist moves as the main reasons,” Moon said. “These challenges cannot be addressed by individual countries.”
Meanwhile, heads of state called for a swift resolution of the U.S.-China trade war during the session, including Japanese Prime Minister Shinzo who said that “a free and open economy is the basis for peace and prosperity.”