US, China trade disputes cost $500 mln, may harm global economy

SOCHI, Oct 18 (PRIME) -- Both the U.S. and China have already suffered U.S. $500 million losses from their trade disputes, and escalation may harm the global economy, President Vladimir Putin told reporters on Thursday.

“Now mutual retaliation between the U.S. and China costs around $500 million. If it continues, there will be a trillion or 1.5 trillion which is a considerable size, around 0.4% of the global economy. This may become a reason for a further decline of the economy which will hit everyone, no one is interested in it,” he said.

Each state has the right to react to unfriendly policy despite some negative consequences, Putin also said.

“I think that an instant reply may worsen the situation but, of course, it is necessary to react and to protect own interests. We, Russia and China, act this way.”

Those who initiate trade wars and sanctions suffer from them themselves, he added.

“Such actions may cause a positive effect in the medium term, but negative consequences are inevitable in the long term.”

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