Saturday, 20 July, 2019


Xi has few good options after Trump’s ultimatum on G-20 meeting

Donald Trump Enlarge Image Donald Trump AFP Getty Images
Bennie Garza | 13 June, 2019, 17:13

If applied, the additional tariffs would see virtually all of China's exports to the U.S. hit with duties.

"I have a feeling that we're going to make a deal with China, because I really don't believe that China wants to continue the problem that they really caused themselves because we had a deal done", he explained.

"If the United States only wants to escalate trade frictions, we will resolutely respond and fight to the end".

President Donald Trump said he had no deadline for China to return to trade talks, other than the one in his head.

Trump praised his relationship with President Xi and said he expects to meet with the Chinese leader at the G-20 summit.

Sources familiar with the matter, including officials and diplomats in Washington and Beijing, say there has been a lack of preparatory work for the meeting, due largely to the increasing acrimony. If he declines the meeting, he must accept the economic costs that come with Trump possibly extending the trade conflict through the 2020 presidential elections.

U.S. Commerce Secretary Wilbur Ross on Tuesday downplayed the summit meeting in Japan, saying it would not be "a place where anyone makes a definitive deal". I had great respect for the president of China, President Xi, but he's representing China and I'm representing the United States of America.

The brinkmanship with China puts Xi - the country's strongest leader in decades - in perhaps the toughest spot of his six-year presidency.

China is open to more trade talks but has nothing to announce about a possible meeting between the two leaders, Foreign Ministry spokesman Geng Shuang said on Monday. Eventually, after several days of uncertainty, Donald Trump accepted the arrangement.

Later on Monday after the CNBC interview, Trump told reporters that he wouldn't be insulted if Xi refused to meet with him.

He said China was "getting absolutely decimated" by companies relocating to avoid the tariffs.

On the USA side in recent years, the lack of preparation for a big meeting is not that unusual.

Trump is buoyed by his self-declared victory following a days-long battle with Mexico after he threatened to impose tariffs unless Mexican authorities did more to stem the migrant flow across the U.S. -Mexico border.

Trump wants China to commit to curbing its longstanding, huge trade surplus with the U.S. The conflict also reflects deeper concerns over China's ambitions to help its own industries gain a lead in key technologies such as robotics and artificial intelligence. "Because China ate the United States alive economically, and it's a shame", he said. We need to get tough with China.

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