West has “a good hand on China’s economic battlefield, but it doesn’t have to be war” | Business News

The head of the world’s largest bank told Sky News that Western economies have a “good hand” on the “economic battlefield” with China, but declared that there does not have to be war.

In a wide-ranging interview with Sky’s Wilfred Frost, JPMorgan Chase chief executive and chairman Jamie Dimon said the West would go through “difficult times” while China had close ties with Russia.

But he said it was well placed due to the resilience of its collective economies and long-standing partnerships such as NATO.

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However, he has warned of the dangers of fragmentation since Donald Trump, when US president, withdrew from the Trans-Pacific Partnership in 2017.

He also said Joe Biden’s administration should have worked with allies on the effects of his Inflation Reduction Act.

The huge incentive program to reinforce the green economy had the effect of withdrawing investment from Europe at a time when Russia war in Ukraine was dominating the agenda.

The bank chief also warned of a reaction from China over US tariffs against its electric cars and solar panels announced this week, arguing that a joint approach by Western powers on China in general would carry more weight.

Dimon, who has run JPMorgan since 2005 and is widely seen as the most influential head of a financial services company in the United States, said: “We have competition with China.

“I think the American government is doing the right thing by getting fully involved. It doesn’t mean the Chinese are going to like everything we do, just like we don’t like everything they do, but it doesn’t have to be war, it can be It’s a tough competition and we must be prepared for it.”

“The most important thing,” he added, “is that we do it together.”

“They’re not enemies, you know, but they’re competing. They want a different world than we want. And I think they want a different world than we want in the Western world… that’s worth fighting for.”

“We all made a little mistake in thinking that we expected that after the WTO (World Trade Organization) they would become more Western and things like that. It’s okay. Don’t cry over spilled milk,” he concluded.

Dimon was speaking 24 hours after the US-based bank, which has 22,000 employees and a 200-year history in the UK market, announced £40 million in new investment to help connect young people and underserved communities to economic opportunities .

They followed the opening of a new technology hub in Glasgow.

JPMorgan Chase – perhaps best known in this country for its Chase retail division – is the world’s largest bank by market value, with a capitalization of almost $600 billion (£475 billion).

Dimon, who initially criticized Brexit following the UK’s separation from the EU, spoke of the bank’s continued commitment to the country, having called into question the future of its UK operations in 2021.

Asked about the impending election, he said negotiations with Rishi Sunak and Sir Keir Starmer left him in no doubt that both the Conservatives and Labor were “pro-business”.

He described how growing economies benefit everyone by enabling investment.

“Everyone I’ve heard… Conservatives and Labor, (are) talking about growing the economy, technology, research and development, simplifying regulations, making it easier for people to start and grow businesses, making sure schools educate… These policies work,” he said.