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Schwarzman Sees U.S.-China Trade Dispute Thawing as Growth Slows

Schwarzman Sees U.S.-China Trade Dispute Thawing as Growth Slows

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Steve Schwarzman said the U.S.-China trade conflict is likely to ease because both countries understand that a decoupling of their economies carries too much risk.

“A potential decoupling of these two giant countries actually results in lower growth for everyone,” Schwarzman, the co-founder of Blackstone Group Inc., said in a Bloomberg Television interview on Tuesday. “Getting something to lower the temperature and helping growth globally is in everybody’s interest.”

China’s economic slowdown is deepening, indicating that current stimulus policies may not be enough to shield it from the worsening effects of the trade war. Negotiations between the two countries are likely to take place in the coming weeks and U.S. officials are considering an interim trade deal, Bloomberg reported earlier this month.

“China recognizes that the circumstances of the world have changed but, like all people who have a good deal, why would you change it?” said Schwarzman. “Ultimately, I believe that people will act in their self-interest and there will be an adjustment.”

China’s rise as an economic powerhouse has taken a toll on the U.S. by shifting jobs and wealth to the Asian nation. That has spurred income disparities and political discord in the U.S.

“Now we have roughly half of the people in the U.S. who have income insufficiency,” the billionaire financier said. “They are in a bad way and that creates populism.”

Schwarzman, 72, is promoting his new book, “What It Takes: Lessons in the Pursuit of Excellence.”

--With assistance from Jason Kelly and Carol Massar.

To contact the reporter on this story: Vincent Bielski in New York at vbielski@bloomberg.net

To contact the editors responsible for this story: Alan Mirabella at amirabella@bloomberg.net, Melissa Karsh

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