NUSA DUA, Indonesia (AP) — The Latest on the IMF-World Bank annual meeting in Bali, Indonesia (all times local):
International Monetary Fund Managing Director Christine Lagarde says the U.S. and China should de-escalate their trade dispute and work to fix trade rules instead of breaking them.
Lagarde told reporters Thursday at the annual meeting of the IMF and World Bank in Bali, Indonesia, that so far there had been no "contagion" of major damage from penalty tariffs imposed by the two countries on each other's exports, but that they do risk hurting "innocent bystanders."
Lagarde said her advice was in three parts: "De-escalate. Fix the system. Don't break it."
She said the rules-making World Trade Organization had ways of addressing U.S. complaints that China's policies unfairly extract advanced technologies and put foreign companies at a disadvantage.
But she said the WTO does need to work on addressing issues like subsidies.
World Bank President Jim Yong Kim says the trade tensions escalating between the U.S. and China could undo global progress in helping end extreme poverty.
Speaking at the outset Thursday of the annual meeting of the World Bank and International Monetary Fund on the island of Bali in Indonesia, joined the IMF's chief in warning of the risks to world growth and economic development from threats to world trade.
The U.S. has imposed tariffs on tens of millions of dollars of Chinese exports and Beijing has responded with similar retaliatory taxes on imports of U.S. goods.
Kim said the most extreme measures, if imposed would cause a "clear slowdown."
He said that without free trade, there would be no hope of helping millions of people escape dire poverty.