Economy

US-China trade resolution expected soon, says GE CEO

China port shipping trade - Credit Bloomberg

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The International Monetary Fund (IMF) cited trade tensions as a risk in the past week as it cut its outlook for global growth to the lowest since the financial crisis a decade ago.

Monday 15, April 2019

(Bloomberg) – The Chief Executive Officer of General Electric (GE) said that US-China relations will continue to evolve as negotiations between the two countries stretch over decades, but a resolution to the current trade dispute will likely happen in the not too distant future.

“there is a politically expedient resolution relative to trade numbers, a big order here, a big order there, substantively, our sense is that both governments should like to advance the conversation, maybe not once and for all, but in a meaningful way with respect to access and intellectual property,” said Larry Culp, the Chief Executive Officer of GE.

Culp’s comments follow Treasury Secretary Steven Mnuchin’s announcement that the US is open to facing repercussions if it does not live up to its commitments in a potential trade deal with China, a sign that the two sides are edging closer to an accord to end their nine-month trade and tariff war.

He’s also concerned that pulling back from China, where GE started doing business as early as 1906, would open up a void that its competitors in Japan and Europe would be very quick to fill.

China is GE’s biggest market by revenue after the US, Culp said.

“If you look at our supply chains, the way our design footprints, operate today they are very much integrated global networks, to pull a piece of the puzzle like China out would impair those supply chains and those design networks,” added Culp.

The US and China are discussing whether to hold more in-person meetings.

 

TAGS : US-China Trade resolution, Steven Mnuchin, General Electric, Larry Culp

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