The escalating commerce conflict between the U.S. and China has buyers on edge, fearing it may mark the start of the tip for world cooperation as we all know it. On Friday, President Donald Trump known as China’s new export controls “terribly aggressive” and “hostile”; he threatened a retaliatory 100% tariff. (He later sought to deescalate the state of affairs, calming U.S. markets.)
For Kristalina Georgieva, head of the Worldwide Financial Fund, it’s simply one other day within the workplace. Talking at Fortune’s Most Highly effective Girls 2025 summit in Washington, D.C., she downplayed any fears of a commerce warfare.
“Frankly, this factor that commerce is useless is totally overstated,” Georgieva informed Fortune’s Diane Brady. “Commerce is like water. You set [up an] impediment, it goes round it.”
And whereas Georgieva acknowledges the world is turning into “foggier” and filled with uncertainty, one of many largest challenges comes from getting buy-in that cooperation is healthier than division: “We’re on this one massive boat. It’s a tough sea. We higher row collectively.”
Fortunately, many nations already subscribe to this philosophy. She identified that following the onset of U.S. tariffs earlier this 12 months, 188 out of the IMF’s 191 member states didn’t select to retaliate. As an alternative, they’ve turned to regional companions for commerce. Southeast Asia and the Gulf area are two examples she cited.
Even China has benefited from diversifying its commerce portfolio: general exports rose 8.3% in September—the very best complete this 12 months—due to robust commerce development with the European Union. Chinese language shipments to the U.S. fell 27% in September, marking half a 12 months of double-digit commerce declines, in keeping with knowledge launched by the Normal Administration of Customs.
However for enterprise leaders, there’s a rising alternative to be a grounding voice so long as they’re prepared to “buckle up,” Georgieva added.
“Excellent news for the world. The non-public sector is extra agile, extra adaptable,” she stated. “Over the past years, we now have seen in lots of nations the place there was [a] massive state presence within the economic system—together with due to IMF urging them to tug again—extra non-public sector initiative. And on this time of robust winds, [business leaders] are an anchor of stability since you adapt, you simply preserve doing it.”
For feminine enterprise leaders, specifically, she reiterated the necessity to at all times be fascinated by worst case eventualities—and be able to adapt to them.
“Consider the unthinkable so that you’re prepared when the unthinkable comes,” Georgieva stated. “As a result of we all know from COVID, we all know from the warfare in Europe, it is going to come, and we girls are so robust and resilient, and we are able to face it.”
