Ex-China Finance Minister: «Only Winning Player is the One Who Loses Less»
The former finance minister of China, Lou Jiwei, stressed that the world could face a crisis worse than 2008 that could lead to a «negative-sum game» where «the only winning player is the one who loses less».
Lou, current chairman of the foreign affairs committee of the Chinese People’s Political Consultative Conference (CPPCC) National Committee, underlined that China’s potential «V-shaped» recovery will depend on the global economy’s performance.
«It is not unlikely that a global crisis more serious than the one in 2008 could break out if the withdrawal pace is not fast enough,» said Lou at a recent economic forum hosted in Shanghai, according to an «SCMP» report.
Anti-Globalization
According to Lou, the recovery faces serious headwinds from the wave of anti-globalization sentiments which he said dates back nearly a decade during the «Occupy Wall Street» moment and southern European structural reforms. This has led to what he called a «negative-sum game» led by the U.S. against Beijing where losing less will be a victory.
«The only winning player is the one who loses less. It is even worse than a zero-sum game that aims for a win-lose outcome,» Lou said.
Tech Decoupling
Lou also highlighted concerns about Washington’s drive for technological decoupling and its impact to developments in areas such as vaccines and artificial intelligence.
Although he believed that popular opinion could change the current course being taken by some politicians, Lou did not see this happening in 2020.
«It is not certain yet which country will be the winner in the end […] but it is certain that the people and companies are the losers,» he said.
Global Coop
In response, Lou said that global economies should cooperate rather than compete to resolve the current challenges stemming from the pandemic.
«The world will keep suffering from circumstances where everyone will be the loser for several years,» Lou said, highlighting increasing bubble risk caused by fiscal and monetary stimulus.
«China’s attitude is very clear, to support and improve globalization. The question is whether other major countries in the world are willing to sit down together and discuss this.»
