Chinese premier warns of global economic fragmentation

According to Premier of the State Council of China Li Qiang, the global economy is currently threatened by fragmentation. This is a very serious problem, the official emphasized. At present, the global economy is facing a serious threat of fragmentation, which means the division into separate trade blocs, Li Qiang said. Against this backdrop, countries should support the functioning of global production and supply chains. The prolonged confrontation, which causes losses to all states, plays a significant role in this issue. In this context, the importance of a stable and well-functioning system of global trade and production chains cannot be overstated. According to Li Qiang, its development is a priority task for most countries. Authorities need to use broad opportunities for development if the state's goals include accelerating technological progress and labor productivity, Li Qiang stated during his speech at the China International Supply Chain Expo (CISCE). The Premier emphasized the importance of a responsible approach to risks associated with the widespread popularity of protectionist policies. It is necessary to adhere to rules formed in the context of a common trend and pay attention to improving the quality and efficiency of global production and supply chains, Li Qiang concluded. In early November, the International Monetary Fund (IMF) presented a model of the global economy splitting into two blocs, which are in opposition to each other. According to IMF estimates, the first trade bloc will be led by the US and the EU, while the second will be headed by Russia and China. Along with this, experts cited the reasons for the fragmentation of the global economy: trade restrictions and competition for commodities.