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Free AccessScholz Warns Against De-Globalisation; 'Must Not Fear Multipolar World'
Speaking at theSuddeutchse Zeitung Economic Summit, German Chancellor Olaf Scholz lamenting efforts to shift away from a globalised economy. Scholz states that de-globalisation is a "dangerous path", and that the German economy, "must not fear developing towards a multipolar world".
- These comments will be viewed with interest in both Washington, D.C., and Beijing. Scholz's recent trip to China for talks with President Xi Jinping was criticised in some western circles given the US-led efforts to reduce the reliance of western supply chains on China.
- Germany has the closest economic relations with China of any major Western nation, and therefore is seen as the least likely to comprehensively side with the US in any burgeoning trade dispute.
- Says that "We should take a very close look at the idea of an industrial tariffs agreement with the United States," with this form of deal being more preferable, "than a bidding war on subsidies and protective tariffs, such as some [we] see coming as a result of the American Inflation Reduction Act."
- States that the German energy, "dependence on Russia was a mistake that should never be repeated", and that "we must expect the situation in Ukraine to escalate further".
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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.