Japan's senior financial official, Masatsugu Asakawa, highlighted persistent global economic risks stemming from the U.S.-China trade conflict and China's economic deceleration, urging comprehensive solutions to structural challenges.
Asakawa, Japan's vice finance minister for international affairs, stated that China's economic slowdown is inevitable as its growth potential declines, but cautioned against significant instability due to available policy tools. This follows China's 2019 target of 6.0-6.5% GDP growth, below its 6.6% 2018 performance.
The official emphasized that resolving the trade war requires addressing not only trade imbalances but also China's structural issues, including intellectual property rights, technology transfer, and state-owned enterprises. He noted that global trade has slowed amid escalating tariffs between Washington and Beijing.
Asakawa also addressed currency dynamics, stating Japan could act within G7/G20 guidelines to manage market volatility. His remarks come as Tokyo prepares to host G20 finance ministers in Fukuoka and leaders in Osaka, focusing on global imbalances and aging population challenges.
Japan's current account surplus, reaching 20 trillion yen in 2018, was defended as reflecting overseas investment returns and demographic savings trends. Asakawa noted that Japanese foreign direct investment supports employment in the U.S. and Europe.
The official, who assumed his role in 2015, holds the record for longest tenure in his position, surpassing former BOJ Governor Haruhiko Kuroda's 3.5-year term ending in 2003.
