Oxford University professor of globalisation and development Ian Goldin has warned the Australian mining sector that tensions with China could escalate into a ‘cold war’ with further impacts on supply chains.
Goldin, the European Bank principal economist and former World Bank vice president, said the ramifications would be detrimental if tensions with China continue to grow.
In a presentation at Diggers & Dealers 2021, Goldin said a global cold war with China could have greater ramifications than the COVID-19 pandemic or climate change.
“The threat of a cold war is real, and it’s my greatest fear at the moment,” he said. “It would be hugely destabilising for the global economy, slow global growth, take away opportunities and lead to excuses for protectionism and nationalism that would damage global trade, and make it more difficult to deal with the systemic risks.”
Goldin said further implications from trade tensions between Australia and China could significantly slow Australia’s economic growth.
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