Morrison proposed the change in the G7 in France earlier this week
Morrison proposed the change in the G7 in France earlier this week

Morrison wants US-China trade resolution

PRIME Minister Scott Morrison has thrown support behind addressing global trade rules as the United States and China duke it out in an ongoing dispute.

Washington and Beijing's trade war is causing ructions in the global economy, with the tit-for-tat tariff tussle spooking financial markets, particularly in the US.

Mr Morrison said the international system had reached a point where China and others have enjoyed growth and expansion to become sophisticated economies.

"The rules that worked for that period won't work so well for the next period if it is going to be an even playing field," he told Sky News in an interview aired on Wednesday.

"It is important this gets addressed."

The prime minister said China's growth had been achieved on the basis of a series of rules and engagements.

"Now that China has reached effectively that goal, well, we now need the rules to be enforced that will guide the next phase. That's fundamentally what this is all about," he told the Australian Financial Review.

Mr Morrison has been at the G7 summit in France where US President Donald Trump said China was ready to return to the negotiating table, a claim which Beijing disputed.

Australia has a role to play in the dispute by giving its perspective and that of the Indo-Pacific region in global forums, the prime minister said.

"When you're a principal in a lot of these discussions, it's hard to look past and see what's actually going on," he said.

Mr Morrison said the US-China trade tension was having an impact on the global economy, but the answer was to resolve the issues underpinning the dispute rather than ignore them.


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