China: Military strike against Syria would hurt global economy

Zhu said estimates from the International Monetary Fund indicate that a military strike would lead to a $10 jump in the price of a barrel of oil, which in turn would cut global economic growth by 0.25%.

A senior Chinese official, backing Russia in opposing a U.S.-led military strike in Syria, warned that such action would hurt the global economy.

It “will definitely have a negative impact on the world economy,” said Vice Finance Minister Zhu Guangyao, speaking ahead of the Group of 20 summit here.

He said the Chinese government believes that the only proper way to address the Syrian conflict is through “political and diplomatic” means.

President Obama arrived in St. Petersburg on Thursday afternoon after a visit to Sweden, where he said that the “international community’s credibility is on the line” in responding resolutely to an alleged chemical attack on civilians by Syrian regime forces.

Although the summit agenda is focused on the global economy, Obama is expected to use the gathering to seek support from world leaders for his position on Syria. Shortly after his arrival, Obama met with Japanese Prime Minister Shinzo Abe, and the president is expected to meet separately with Chinese President Xi Jinping and French President Francois Hollande.

France is the only European Union country to give clear support for a military response to Syria. On Thursday, EU leaders at the summit condemned the alleged attack but declined to endorse Obama’s call for military action.

In a briefing, Herman Van Rompuy, the president of the European Council, the EU’s strategic body, pressed for a political solution to the conflict and for the international community to act under the auspices of the United Nations.

“We urge the U.N. Security Council to unite to prevent any further chemical attack,” Van Rompuy said.

Such unified action would require support from China and Russia, permanent members of the U.N. Security Council. Although Russian President Vladimir Putin, a chief Syria ally, appeared to have somewhat softened his position on the matter ahead of the summit, he has dismissed as unconvincing U.S. statements that the government of Syrian President Bashar Assad carried out a sarin gas attack.

Van Rompuy did not question the credibility of American evidence, saying that a number of countries, including some in Europe, have pointed to the Assad regime as the responsible party in the alleged Aug. 21 attack that killed hundreds, including many children.

He called on the U.N. to release a report of its findings of what happened as soon as possible.

 

LA Times