US-Chinese tensions provoke the split of the world

As tensions between the United States and China increase, it is increasingly likely that the world will divide in two, warned Friday the president of a large British bank.

Such an event, if it materializes, will be "detrimental to the world," said Jose Vinals, chairman of the Standard Chartered Bank Group. His comments came as the rivalry between the two largest global economies extends to areas other than trade, such as technology and global influence.

"I think that what will be detrimental to the world, is to move from the current state to a kind of bifurcation of globalization," Vinals told CNBC's Nancy Hungerford at the meeting. spring of the Institute of International Finance in Japan.

He explained that some countries and companies could start to "do more business and operate in half of the globalized world along the western line", while the other half could work "in the party globalized along the eastern line ".

"I hope this will not happen, but it is a more likely prospect today than it was a few years ago. And I think the reality will be very unfavorable if it materializes, "he added.

Vinals is not the only business executive to have warned about a possible division of the world because of the rivalry between Washington and Beijing. Last year, Eric Schmidt, former CEO of Google, predicted the creation of two separate internets over the next decade: one led by the United States and the other by China.

The United States and China have engaged in a one-year tariff fight that many badysts and investors hoped to resolve this year. But developments and growing rhetoric on both sides in recent weeks have dampened these hopes.

Last month, US President Donald Trump increased customs duties on Chinese imports to a value of $ 200 billion. Which led Beijing to avenge itself with its own taxes. The high-level negotiations for a trade agreement between the two countries have since stopped.

Adding to the conflict, Washington has placed Huawei on a blacklist that prevents US companies from doing business with China's tech giant.

These recent developments indicate that it has become more difficult for Washington and Beijing to reach an agreement – a "marked" change from the optimism observed a few months ago, noted Vinals.

"It's very difficult to know what will happen," he said. "I think what we have seen is a marked change in mood over the last two months, two months ago everybody was saying, 'There will be an agreement. "Now the expectations are:" It will be very difficult to find an agreement there. "

– Sam Meredith of CNBC contributed to this report.