Gary Cohn with Donald Trump. Photo: Getty Images
US President Donald Trump’s trade war with China is failing to hit the Chinese economy, according to his former chief economic adviser.
The tit-for-tat tariff battle was “a very convenient excuse” for China to slow down its overheated economy, Gary Cohn told the BBC.
But at the same time, the spat was having “a dramatic effect” on US manufacturing and capital investment.
This was leading to a “bifurcation” of the economy as services were unharmed.
“I think the Chinese economy is driven by credit and credit availability,” Mr Cohn told the BBC’s Today programme.
“Credit and credit availability is determined by the central government. And they can turn it on and they can turn credit off.”
Mr Cohn, a US economist and investment banker, served as director of the National Economic Council in the Trump administration from January 2017 to April 2018.
He announced he was resigning after Mr Trump decided to impose import tariffs on steel and aluminium.