US tariffs might not derail global growth: Insurance chief

The level of tariffs that the United States plans to impose on Chinese imports may not derail global growth, but if trade tension escalates it could be problematic, said Nic Nicandrou, chief executive of Prudential Corporation Asia on Saturday.

The head of the British insurer's Asia Pacific operation said that trade tension between the US and China is likely to be a "blip" rather than something that will derail the growth momentum of the global economy.

"We are at a stage where global GDP will grow at a faster pace than any point in the past 11 years since the financial crisis. There are many positive forces that will underpin that," Nicandrou told China Daily on the sidelines of the China Development Forum.

"Let's hope it (trade tension) does not escalate into something severe. Because if it does, it will be problematic," Nicandrou said.

Nicandrou expressed optimism on the growth potential of the Chinese insurance market and said Prudential would like to increase its stake holding in its joint ventures in China once the regulators loosen the restrictions on foreign ownership in the insurance sector.