The distance between Washington and Beijing is more than 11,000 kilometers or nearly 7,000 miles. But it could be light years when it comes to the deteriorating trade dispute between the United States and China.
During the past 24 hours, the chasm has deepened after President Donald Trump appeared to take relations between the US and the European Union out of the deep freeze following crucial White House talks.
As discussions were about to start with European Commission President Jean-Claude Juncker to resolve the EU trade spat, China’s President Xi Jinping was making his keynote speech at the BRICS Summit in Johannesburg with the leaders of Brazil, Russia, India and South Africa in attendance.
Calling for an end to “unilateralism and protectionism,” Xi hammered home his point but stressed that “a trade war should be rejected because there will be no winners.”
Hours later, Trump was bragging about the outcome of his meeting with Juncker and the proposed plan to move towards “zero” tariffs after the EU agreed to buy more American exports worth billions of dollars, including soybeans and natural gas, as well as working to reform international trade rules.
Obviously the European Union, as represented by @JunckerEU and the United States, as represented by yours truly, love each other! pic.twitter.com/42ImacgCN0
— Donald J. Trump (@realDonaldTrump) July 25, 2018
“So, we had a big day, very big,” he told the media in the White House rose garden, standing alongside Juncker. “We agreed today, first of all, to work together toward zero tariffs, zero non-tariff barriers and zero subsidies on non-auto industrial goods.”
Juncker was slightly more restrained and pragmatic.
He made it clear that the EU was willing to import “soybeans from the US” but warned that negotiations would only continue if further tariffs were put on hold and “existing” ones were reassessed.
“The avoidance of a disaster is not a success,” Bart Oosterveld, the director of the global business and economics program at the Atlantic Council, a think tank in Washington, told The Guardian in London.
“What I think we saw is the resumption of some basic dialogue. Individual items like soybeans and LNG [liquefied natural gas] are not massively significant. I don’t think the EU would agree to a major revision of trade terms without steel and aluminum being taken off the table first,” he added.
Still, the news will be a wake-up call for Xi’s government, which was desperate to persuade the EU to become an ally in the US-Sino conflict.
In meetings in Brussels, Berlin and Beijing, senior Chinese officials, including Vice-Premier Liu He and the country’s top diplomat, State Councillor Wang Yi, had proposed an alliance between the two economic powers earlier this month by offering to further open up the domestic market to European companies.
“China wants the European Union to stand with Beijing against Washington, to take sides,” one European diplomat told Reuters. “We won’t do it and we have told them that.”
For Xi, that leaves the world’s second-largest economy standing alone as the trade war continues to escalate.
Great to be back on track with the European Union. This was a big day for free and fair trade!
— Donald J. Trump (@realDonaldTrump) July 26, 2018
At the BRICS Summit, rising tensions have dominated the gathering, which represents at least 40% of the global population, with China’s president spelling out the challenges ahead.
“Unilateralism and protectionism are mounting, dealing a severe blow to multilateralism and the multilateral trading regime,” he said, without mentioning the US by name.
“We are facing a choice between cooperation and confrontation, between opening up and closed-door policy and between mutual benefit and a beggar-thy-neighbor approach. The international community has again reached a new crossroads.”
Earlier, Trump had added another layer to the dispute when he went into Twitter overdrive, accusing the country of “vicious” trade tactics by targeting US farmers who “I love [and] respect” in tit-for-tat tariffs.
Until the rhetoric cools, the chasm between two of the world’s largest economic powers will turn into a black hole.
"Still, the news will be a wake-up call for Xi’s government, which was desperate to persuade the EU to become an ally in the US-Sino conflict."
To be sure, Beijing wants the world to be against trade wars, but is hardly "desperate" to persuade anyone to become an ally, least of all EU, which shows again and again that it’s willing to be against China in order to please the Trump administration.
LoL. eu is nothing but a loser since it has much less number of trade partners compared to China. The author of this article has no understanding whatsoever of reality. The author makes himself a laughing stock by comparing loser eu to Winner China.
EU – US trade war was just a drama, even India would be exempted from sanction imposed on Iran; it’s all about China and its BRI.
There is no deal !!!!The boss of the European Union can not make a deal.
The 28 countries must agree !!!
We Europeans are not Americans where a clown can be elected and can decide the most incredible stupidity alone at night .
The heads of the 28 countries in the European Union must agree with every proposal of the European commission.
Its so obvious that the west will always stand together, but we in the east can never do that ,that’s the reason for our defeat from ancient times
Carlos De Souza Vietnam stand with China to get it’s independence. Ryukyu people begged China to rescue itself before being colonized by Japanese militant, same with Korea, their leaders escape to Shanghai to form resistance force so they can get back their country. Malacca sultanate were colonized by European, Philippines by Spanish and later by American, all when China was weak in the 18 the 18th century.
AH mankind . never been any different and never will until the day nature disposes of the plague “ humans “
It’s not pleasing the Trump administration, it’s looking at reality. PRC has too long been benefitting and applying rules that were not fair at all for aneriAme and European companies
Let’s talk again in some weeks
When you have a showman in charge, the appearance to the public is the most important thing.
No way we will stand with you chinese..coz u r the problem not the solution. . .
Seems USA is winning now but China will be winning in the future. Asian rocks
The world has been decieved and robbed by the wicked red dragon for so long with the peddling of fake , copied,single use , plastic based goods produced with stolen intellectual properties. Now China is peddling soft loans that has quickly caught poor countries with weak governance like Tonga and Bankladesh in the soft loan "debt trap". This unfair trade practices must be stopped and China must be made to submit to WTo rules.
With the help of the God of Israel , Trump and America will prevail.
God bless America
My friend. You have to understand that EU is like US market for China. That’s why China is trying to persuade EU to take sides with them. China is nothing but a shit country if US and EU will boycot all their export products. China i think must to look for trading partners somewhere in the outer space in mars maybe. Because even the aliens their would not like the trade practice of china.
Zaher Sufi why u r so jealous at India’s progress?Does it hurt u in any way!
Zaher Sufi why u r so jealous at India’s progress?Does it hurt u in any way!
why are you hiding your true identity, readers on your comments could not buy your arguments, or opinion because your fake….
why are you hiding your true identity, readers on your comments could not buy your arguments, or opinion because your fake….
Why should it side with China,which keeps on stealing intellectuals properties and keep copying
Why should it side with China,which keeps on stealing intellectuals properties and keep copying
Hehe
Hehe
Yes,China has to be contained
Yes,China has to be contained
WuKong Sun true
WuKong Sun true
They will.they all know how China steals left and right
They will.they all know how China steals left and right
Hey,China never consider any country as east.that is the problem
Hey,China never consider any country as east.that is the problem
Hehe
Hehe
I agree totally sir
I agree totally sir
Carlos De Souza correct
Carlos De Souza correct
WuKong Sun very true
If i were you i will change my nationality to chinese, you are an abid follower of Xi.
If i were you i will change my nationality to chinese, you are an abid follower of Xi.
China is such a country who is invader to all its neighbours and continue to be so and thinks that their neighbours will ally with it .
China is such a country who is invader to all its neighbours and continue to be so and thinks that their neighbours will ally with it .