Live on Bloomberg TV

00:00Do you worry about Chinese growth going down do you have worry about Chinese debt or not. Chinese growth has been going down regularly for the last 10 years or so. Remember the days when it was a double digit. So it's gradually come down. And every time it was moving from a 10 to a nine to an 8 to a 7 there was always trepidation and I've heard so many times that China was going to collapse. It hasn't collapsed. It has certainly helped a great deal. The global world economy at the time of the financial crisis because it was certainly one of the first if not the first country to come out with a huge package of stimulus in order to kick start the economy. So yes it is a heavily indebted. Yes . They're trying to rein that Henry. But at the same time it's a country that has a huge population which has massive transition issues to deal with. And where the necessary reduction of growth that we're seeing by virtue of the size of this economy now has to be monitored has to be under control in order to tame any any risk of conflict. That's how I see it. And what about the tariffs. President Trump has been talking about imposing terrorism has imposed tariffs against China and some other parts of the world. Do you think that's a plus for the global economy or you think it's not. I think that tariffs are not a good idea in general. If they impact trade to the point that trade no longer plays the key role as an engine for growth what do we see in the last 30 years. We see trade growing faster than growth. So it's been a driving engine for growth. We see lots of people taken out of poverty. We see the cost of living in advanced economies including in the United States lower by virtue of cheaper refrigerator cheaper television set. It's cheaper telephones and so on and so forth because they are made in countries where costs are much lower . So there has been huge benefits not only benefits but there have been huge benefits. And I don't think we can dispense of those benefits going forward. So my take on that is fix it. Don't break it because trade needs fixing. There's no question about it. And I think that President Trump has put the finger right where it hurts. There are issues about the trade rules and organizations that need to be addressed and dealt with .

No schedule data available.

Lagarde on China's Slowing Growth and What Trump Got Right on Trade

Christine Lagarde, managing director of the International Monetary Fund, tells David Rubenstein that China's slowing growth "has to be under control" to "tame any risk of conflict." She also says that, while she disapproves of tariffs, she believes President Donald Trump is correct that some trade rules and issues "need to be addressed." She speaks in the latest episode of "The David Rubenstein Show: Peer-to-Peer Conversations" in an interview taped Sept. 19 in Washington. (Source: Bloomberg)

PxPixel