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Sat, 17 Oct 2026

Sat, 17 Oct 2026 Faisal Islam: Why China and AI are worrying global finance bosses

At the IMF meeting in Bangkok this week finance and business leaders grappled with uncertainty.

* Interest rates are rising sharply in advanced economies due to these crises.
* Smaller economies have shown remarkable resilience, establishing new trade routes for oil and gas out of necessity.
* The IMF meetings in Bangkok highlighted the uncertainty surrounding the global economy's future direction.
* Bond markets are currently focused on the US and France, but the French finance minister has reported no problem selling debt, albeit at a higher cost.
* Despite crises, it's a miracle there hasn't been a global recession or major emerging market debt crisis.
* The UK's economy is being reassessed by bond financiers after years of crisis, with Chancellor John Healey highlighting strong growth data as evidence that AI investment is increasing the country's economic performance.
* The China Shock Two is dominating world trade discussions, with China's rapid dominance in advanced manufacturing posing a challenge to global trade management.
* The EU is drawing up new "Made in Europe" protections, which will impact the UK and could lead to China diverting excess car production there or the EU inviting the UK to join its new rules.
* There are reports of a possible UK-EU reconciliation, with some calling it "Breturn".
* Despite concerns about AI's transformative economic effect and cybersecurity risks, finance ministers rely on it to boost global growth.