CGTN Europe discussed this with Keyu Jin associate professor of Economics at the London school of Economics
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00:00Well, let's bring in Kay Youjin who's a Chinese economist and also a professor at the London School of Economics
00:05It's great to see you here in Davos. Lots to unpick here
00:09But you know, what's your take the United States pulling out of those Paris Accords? What does it mean for climate diplomacy?
00:16First of all, I think what Trump personifies is a gradual normalization of unacceptable behavior and abnormal behavior
00:24That the world has worked so carefully on building collaborating around this central goal
00:30And the abdication of abdication of this leadership role gives some countries like China more of an opportunity
00:36Again, the opposite reaction to coalesce these forces to do the necessary good
00:42There's lots of talk about the cost of inaction being greater than the cost of action
00:48So what does it all mean for the global economy?
00:51Well, first of all, there's a lot of economic growth drivers coming from the new energy type renewables green tech, etc
00:59That many countries should be embracing rather than going backward to the traditional
01:04energy consuming industries and this means that you know, these the implication is of course
01:11Tariffs and higher prices and of course than higher interest rate and it's all a vicious circle
01:16JPMorgan's boss Jamie Dimon has said that the United States markets are really inflated. He's got a much more cautious approach
01:25What's your outlook with Trump back in office?
01:29Well, first of all the interest rates being as high and as long as it has been without causing a recession the u.s
01:35While causing recessions and financial problems in other countries
01:39That's not a sustainable pattern and the dollar many believe is
01:43Overvalued and there's some belief that it will return to a more depreciated level
01:48But of course the tariff implications on the word are are tremendous not least for us, but for all countries involved
01:55So let's look ahead. Let's look ahead to 2025. What do you think? The mega trends are going to be?
02:01Well, I have to say
02:03Across with chaos is still a marker of what's happening. If you look around the world
02:09Unpredictability gradually becoming more predictable and of course
02:15Multi-polarity fragmentation but diversification so many countries doing everything to diversify trading partners investment partners
02:21Currencies payment channels that is the major theme here trade war. Yes or no? No one interested except for Trump himself
02:29Okay, Eugene. It's a pleasure talking to you. Thank you very much. Indeed
02:33That's okay Eugene Chinese economist and professor at the London School of Economics