Leaders are preparing for the annual gathering of the world’s top 20 economies in Buenos Aires Argentina this weekend.And two will be in the spotlight as the ongoing trade war between their two countries continues.
US president Donald Trump will meet with Chinese President Xi Jinping on the sidelines of the G20 summit.White House economic advisor Larry Kudlow says President Trump is open to a deal with China with some caveats.Issues of intellectual property theft must be solved.Forced technology transfers must be solved.Significant tariffs and non-tariff barriers must be solved.Issues of ownership have to be solved.
If no deal is met, the White House will consider hiking tariffs on 200 billion dollars of Chinese imports and adding tariffs on another 267 billion dollars-worth of imports.Former US ambassador to China, Winston Lord:President Trump is correct to try to correct the economic inequities although I think the tariffs is a long way to go about,
and it’s better to have his more recent emphasis on forced technology transfer intellectual property that subsidies to Chinese companies, etc. Meanwhile Beijing has warned that a trade war could lead to a fragmentation of the global economy.Under the circumstances when global trade and investment are in great difficulties, G20 has the responsibility to discuss trade and investment protectionism and need to send that a clear signal against unilateralism and trade protectionism. A cooling down of trade tensions will help ease financial market concerns worldwide.Investors will be looking for signals that the two sides are willing to resolve trade differences.The Asia-pacific Economic Cooperation summit in mid-November failed to produce a joint statement largely due to differences between Washington and Beijing.
The world will be watching whether the G20 will be a breakthrough or another stalemate.
Patsy Widakuswara VOA News at Whitehouse