China, U.S showdown looms on trade
The two economic giants, the U.S. and China will meet at the G20 Summit on Saturday. The ongoing trade war between the two will be discussed in order to find a middle ground.
At a dinner meeting in Buenos Aires by the US President Donald Trump, a trade deal will have to be made. Trump says this will be the last chance for China to listen to his requisitions or face severe consequences.
Leaders from 20 other powerful economies will attend the summit, such as France, Russia, and Saudi Arabia.
They are worried the situation might go worse, therefore, they desperately want the two countries to reach an agreement. Whereas, the Ukraine dispute is a burning matter which could threaten any progress.
Trump has already imposed $250 billion in tariffs on Chinese products. Thus, he seemed quite hopeful that Xi Jinping, the Chinese President, will fulfill his demands. On the first day of the summit, Trump met Japanese Prime Minister, Shinzo Abe. He then talked to the reporters on Friday and said, “We’re working very hard. If we could make a deal, that would be good.” Trump pledged to safeguard the rights of workers and place “America First.”
It came as a surprise when Xi announced that he favored global capitalism as China is a communist country. During a speech at the summit, Xi said that the principal economies must carry out a free and fair trade.
Trump asked China to cancel its requirements where overseas firms are supposed to work with domestic ones. He also blamed that China stole U.S. technology. However, the tenseness has alleviated after Mike Pompeo, Secretary of State, guaranteed that the U.S. doesn’t want to start a Cold War. The traders from both the countries are exchanging the list of products to be traded.
Firms and investors around the world fear that the tension between China and U.S. could harm the global markets.
China Daily mentioned that no negotiations could be done if the U.S. pressurizes China on the technology. It further said that the U.S. must stop with their autocratic approach. A good deal means mutual benefit.