Globalization remains vital in different forms, foreign bankers say

As global trade protectionism rises, and with Donald Trump's election as US President, there are threats of significant increases in tariffs on foreign goods exported to the US. Amid market skepticism about whether "globalization is dead," Jane Fraser, CEO of Citi; Colm Kelleher, Chairman of UBS; and Bill Winters, CEO of Standard Chartered, all expressed at the Global Financial Leaders' Investment Summit that globalization is not dead and its progress will not reverse, though its form may change.

Dynamic changes remain

Fraser stated that globalization cannot be said to be dead, emphasizing that trade will not stop, although its form is changing and resilience needs to be built. She noted that global supply chains, food, energy, technology, and financial flows have significantly changed over the past three years. Potential changes in tariffs will undoubtedly accelerate these transformations, but various flows have not diminished.

Kelleher also believes that globalization will not reverse, but regional connections will strengthen. He noted that Asian economies can cope with the impact of tariffs. Even though US tariffs on China might significantly impact China's economic growth, he trusts that the Chinese government can implement various measures to mitigate the economic effects of these tariffs.

High tariffs do not diminish trade volume

Regarding statements like "globalization is dead" or "globalization is in retreat," Winters said, "It's just simply rubbish." He asserted that globalization remains as resilient as ever, just manifested in different ways. Trade volumes continue to rise, and the imposition of 60% tariffs from certain countries does not harm overall trade; it merely creates friction costs.

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