A 90-day trade war truce was hammered out by United States President Donald Trump and China’s head of state Xi Jinping after a mini-summit dinner at the Group of 20 meeting in Buenos Aires.
Over steaks and Argentine wine, the two leaders brokered a ceasefire to ease global tensions and ensure that, for now, there will be no further escalation in tit-for-tat duties on hundreds of billions of goods and products.
“This was an amazing and productive meeting with unlimited possibilities for both the United States and China,” the US president said a statement. “It is my great honor to be working with President Xi.”
Existing tariffs on nearly US$250 billion of Chinese goods at 10% will stay in place but a planned hike to 25% on January 1 will be put on hold. In exchange, the US wants to start immediate talks on Washington’s biggest areas of concerns, such as Chinese trade practices, intellectual property violations, non-tariff barriers and cyber theft.
Discussions will run for roughly the next three months after the threat of further duties on Chinese imports were frozen, and Beijing agreed to buy more US goods and products, which had been on the table since last summer.
“The principal agreement has effectively prevented further expansion of economic friction between the two countries and has opened up new space for win-win cooperation,” said Chinese Foreign Minister Wang Yi.
“It is conducive not only to the development of the two countries and the well-being of the Chinese and American people but also to stable growth of the world economy,” Wang added.
Maintaining this air optimism in the next three months is open to debate as tough negotiations will certainly lie ahead. Xi gave very little away in an early statement when he said: “Only with cooperation between us can we serve the interest of both peace and prosperity.”
Still, G20 nations had been eager for signs of progress in Buenos Aires as the ongoing trade war threatened to spiral into a new economic Cold War. For global markets, this could be just the boost they are looking for.
Yet the outcome of Trump’s dinner date has sparked mixed reviews when it comes to resolving fundamental differences between the world’s two leading economies.
“I view this as a Chinese victory per my October 23 report from Beijing,” said David P Goldman, an Asia Times columnist and partner. “Trump is asking for the wrong thing, so China will give it to him. He gets to declare victory and China gets to become the dominant world economy in 15 years.”
‘Maximum demands’
Michael Pillsbury, a senior fellow at the Hudson Institute and a defense official under US presidents including Ronald Reagan and George W Bush, tended to hedge his bets.
“Neither side got their maximum demands and it’s not the first time in US-China relations that both sides claim victory,” he told Bloomberg. “Both sides avoided the worst-case scenario.”
Apart from the Xi-Trump meeting, the annual summit concluded in Argentina’s capital with a watered-down statement.
The G20 communique was finally adopted after all-night haggling by negotiators ensured that the summit at least finished with a joint platform, unlike recent G7 and Asia-Pacific gatherings where Trump’s objections caused unprecedented breakdowns.
The group’s members, apart from the US, agreed to implement the “irreversible” Paris Agreement on climate change, ahead of a UN summit on the planetary threat starting next week in Poland, it said.
But it added that the “United States reiterates its decision to withdraw from the Paris Agreement,” mirroring the divergence seen last year when the US president shocked the global community by bucking the consensus at his first G20.
Credibility in question
The statement also omitted pledges by the G20 to fight protectionism and uphold multilateral trading rules, which used to be a mainstay of the world’s leading economies pre-Trump.
Instead, it merely recognized the “contribution” of the “multilateral trading system,” and added that it was “falling short” in goals of growth and job creation.
“The United States, which is the most open economy in the world, does not accept being shackled,” the summit’s host, Argentina’s President Mauricio Macri, told a news conference.
The G20 also agreed to reform the World Trade Organization, which is accused by Trump of limiting US commercial freedoms to the advantage of China and other rivals.
But the conclusions were dismissed as “the lowest common denominator” by Thomas Bernes, a senior fellow at the Center for International Governance Innovation in Canada who used to be a G20 negotiator for the Canadian government.
“It was the weakest communique we’ve ever seen from the G20,” he told AFP, contrasting the group’s posture now in the Trump era to its sense of common purpose when the leaders first met 10 years ago in the midst of a financial crisis.
Black Sea, black gold
Trump’s determination to plow on with his “America First” agenda stands in contrast to the alliance-building presidency of George HW Bush, whose death Friday triggered warm tributes from European leaders including German Chancellor Angela Merkel and French President Emmanuel Macron.
Trump said his predecessor’s passing would prevent him from holding a post-summit news conference, “out of respect” for the Bush family.
It was Trump’s second cancellation after he pulled out of a meeting with Russian President Vladimir Putin, citing Russia’s recent seizure of three Ukrainian vessels off Crimea, although the two did cross paths.
The White House characterized that encounter as an informal chat, but Putin gave it more significance.
“We spoke standing up. I replied to his questions about the incident in the Black Sea,” Putin told reporters, after coming under pressure over the issue from Merkel and Macron at the meeting.
Putin said it was “a pity” that he had not been able to have a proper meeting with Trump. “I think that one is really necessary. I hope that we can meet when the US side is ready for it.”
The Russian leader had a more productive dialogue in Buenos Aires with Saudi Crown Prince Mohammed bin Salman.
He greeted the crown prince as a long-lost friend, ignoring Western opprobrium over the prince’s alleged role in the murder of a dissident Saudi journalist in October.
Trump also met briefly with the crown prince, with the two men reportedly exchanging pleasantries during a leaders’ session, a White House official said. Trump later said: “We had no discussion.”
US Secretary of State Mike Pompeo and Saudi Foreign Minister Adel al-Jubeir discussed the need for progress in the investigation into slain journalist’s brutal killing and dismemberment during talks on Friday, the US State Department said in a statement.
The Trump administration has come under fire for its perceived willingness to look the other way on the gruesome murder in order to maintain ties with a crucial Middle Eastern ally and a major buyer of US armaments.
Reports also said British Prime Minister Theresa May told the prince in a meeting on the G20 sidelines that the killers of Khashoggi should be held to account and that Saudi Arabia should move to build confidence that such an incident would never happen again.
Macron said he told the prince in a separate meeting that Europeans will insist on international experts being part of the investigation into Khashoggi’s killing, Reuters reported. Putin reportedly pulled out a pen and paper to sketch the skirmish in the meeting, Bloomberg reported.
Saudi Arabia has insisted the prince had no prior knowledge of the killing.
– This report draws on wire agency reporting, including AFP
Richard Truong while we comrade are socialists with capitalist traits… or did I get that wrong, 0.5 RMB for you anyway
Richard Truong while we comrade are socialists with capitalist traits… or did I get that wrong, 0.5 RMB for you anyway
Enb Libra
Thanks for your reply, but I’m not sure your cited reference supports your position.
The World Economic Forum article is simply saying that GDP growth is primarily a function of demographics (Worker’s Age as % of Total Pop.) and India’s demographics will give it greater growth potential over China. No where does it even hint that China will not surpass the US in the near to mid-term future.
" Former World Bank Chief James Wolfensohn declared in one of his speeches that soon GDP India and GDP China will witness an overwhelming growth that will transcend the G7 countries, that includes United States of America, Canada, France, Germany, Italy, Japan, and United Kingdom. It is assumed that by the year 2050, both India GDP and China GDP will witness a gargantuan growth. The current GDP of China is USD two trillion which is predicted to reach USD 48.6 trillion by 2050. On the other hand, India’s current GDP is USD one trillion, which will become USD 27 trillion by that time."
See: https://business.mapsofindia.com/india-gdp/sectorwise/india-vs-china.html
So yes, both China and India will surpass the US and the West in economic terms by mid-century. Economically, Eurasia is where it’s all happening this century and where it has been for most of the world’s history.
Not to argue your point on who has cutting edge technologies but the truth of the matter is that the need for cutting edge technologies is not that important to a country’s GDP growth.
Enb Libra
Thanks for your reply, but I’m not sure your cited reference supports your position.
The World Economic Forum article is simply saying that GDP growth is primarily a function of demographics (Worker’s Age as % of Total Pop.) and India’s demographics will give it greater growth potential over China. No where does it even hint that China will not surpass the US in the near to mid-term future.
" Former World Bank Chief James Wolfensohn declared in one of his speeches that soon GDP India and GDP China will witness an overwhelming growth that will transcend the G7 countries, that includes United States of America, Canada, France, Germany, Italy, Japan, and United Kingdom. It is assumed that by the year 2050, both India GDP and China GDP will witness a gargantuan growth. The current GDP of China is USD two trillion which is predicted to reach USD 48.6 trillion by 2050. On the other hand, India’s current GDP is USD one trillion, which will become USD 27 trillion by that time."
See: https://business.mapsofindia.com/india-gdp/sectorwise/india-vs-china.html
So yes, both China and India will surpass the US and the West in economic terms by mid-century. Economically, Eurasia is where it’s all happening this century and where it has been for most of the world’s history.
Not to argue your point on who has cutting edge technologies but the truth of the matter is that the need for cutting edge technologies is not that important to a country’s GDP growth.
“DREAM ON” is also a nice. WAKE LITTLE SUZY is another. Your choice.
Made in China 2025" blueprint which is based on the twin pillars of Chinese "self-sufficiency" and Chinese domination of global exports in these sectors. To get there, America has accused China of blatant intellectual property theft and policies which offer the latter’s national champions and preferred domestic firms all manner of unfair disadvantages such as subsidies, tax breaks and protection from foreign competition in Chinese markets.
If China is indeed guilty of these accusations, then it must delay its political and economic objective to become a "moderately prosperous society" by 2021 and a fully developed economy by 2049. If China is not, Trump has nevertheless placed the burden of proof on China to demonstrate that it plays according to the rules.
Meanwhile, inside China, Xi is being accused of triumphalism and unnecessarily picking fights with America. The Shanghai Composite Index has fallen almost 30% since the beginning of the year and the trade troubles come at a time when China is trying to de-leverage its economy while maintaining growth at the 6.5% target at the same time.
“DREAM ON” is also a nice. WAKE LITTLE SUZY is another. Your choice.
Made in China 2025" blueprint which is based on the twin pillars of Chinese "self-sufficiency" and Chinese domination of global exports in these sectors. To get there, America has accused China of blatant intellectual property theft and policies which offer the latter’s national champions and preferred domestic firms all manner of unfair disadvantages such as subsidies, tax breaks and protection from foreign competition in Chinese markets.
If China is indeed guilty of these accusations, then it must delay its political and economic objective to become a "moderately prosperous society" by 2021 and a fully developed economy by 2049. If China is not, Trump has nevertheless placed the burden of proof on China to demonstrate that it plays according to the rules.
Meanwhile, inside China, Xi is being accused of triumphalism and unnecessarily picking fights with America. The Shanghai Composite Index has fallen almost 30% since the beginning of the year and the trade troubles come at a time when China is trying to de-leverage its economy while maintaining growth at the 6.5% target at the same time.
The reality is far more unsettling, especially for China. Dreaming is easy facing reality is not.
What’s crystal clear is that Xi will be desperate to avoid the tariff increase on its imports to America from 10% to 25% in 90 days’ time. But offering to help increase American goods into China has only temporarily staved off the threatened 25% tariff at the beginning of 2019 — and then only for 90 days. The pain for China is far from over and Xi might have to walk back his grand economic plans for the country.
https://edition-m.cnn.com/2018/12/03/opinions/china-us-trade-intl/index.html?r=https%3A%2F%2Fedition.cnn.com%2F
The reality is far more unsettling, especially for China. Dreaming is easy facing reality is not.
What’s crystal clear is that Xi will be desperate to avoid the tariff increase on its imports to America from 10% to 25% in 90 days’ time. But offering to help increase American goods into China has only temporarily staved off the threatened 25% tariff at the beginning of 2019 — and then only for 90 days. The pain for China is far from over and Xi might have to walk back his grand economic plans for the country.
https://edition-m.cnn.com/2018/12/03/opinions/china-us-trade-intl/index.html?r=https%3A%2F%2Fedition.cnn.com%2F
Hmmm, the american public are very sensitive to the economic situation in the country especially with some of the news in US lately which is probably what Trump is reacting to. I am not sure if XJP is playing his cards right but the CCP probably understood that if chance presents itself you really cannot ignore 5% of worlds population notwithstanding the bellicose attitude of the US, borne out of desperation or some imagined existential threat propagated by those Breitbart hicks. Trump might just be playing for a breather here. I am all for a peaceful east Asia without the US ,or very minimal US presence, whose track record in the ME consist of Israel, refugees for the Europeans and a lot of dead people.
Hmmm, the american public are very sensitive to the economic situation in the country especially with some of the news in US lately which is probably what Trump is reacting to. I am not sure if XJP is playing his cards right but the CCP probably understood that if chance presents itself you really cannot ignore 5% of worlds population notwithstanding the bellicose attitude of the US, borne out of desperation or some imagined existential threat propagated by those Breitbart hicks. Trump might just be playing for a breather here. I am all for a peaceful east Asia without the US ,or very minimal US presence, whose track record in the ME consist of Israel, refugees for the Europeans and a lot of dead people.
Jane Du Another Wumoa, this time transgender, what was your previous name ?
As a (supposed) lady can you tell us why the #1 cosmetic operation in China is to have round-eyes ?
As for your ‘the peasants can move’, that’s just what Mao said in the cultural revolution.70m died of starvation.
Jane Du Another Wumoa, this time transgender, what was your previous name ?
As a (supposed) lady can you tell us why the #1 cosmetic operation in China is to have round-eyes ?
As for your ‘the peasants can move’, that’s just what Mao said in the cultural revolution.70m died of starvation.
Yue Fei Until he is negative about China then you and the other Wumao insult him.
Yue Fei Until he is negative about China then you and the other Wumao insult him.
Flora de los Sinensis Another lady that likes something bigger, does that offend you ?
Flora de los Sinensis Another lady that likes something bigger, does that offend you ?
.
***Great to be living in fantasy land***
OK, OK guys, the guy (Trump) is looking for some badly needed political capital and, the most valued of political capitals, regardless if you are DEM or GOP, is the China card….
Trump is not the first President to deploy the China card. Practically every el Presidente in the US since FDR had deployed the China card in one form or another for some badly needed political capitals and Trump of course is of no exception to this fact.
All the while, as he raises his fist and fires off salvo upon salvos of tarriffs on China and China returnes the favor, Ivanka Inc. strangely just go crazy in the Chinese market, so how seriously, do you guys think he will continue with his China card once he have his second held snuggedly in his hand?
Some food for thought fellas.
.
.
***Great to be living in fantasy land***
OK, OK guys, the guy (Trump) is looking for some badly needed political capital and, the most valued of political capitals, regardless if you are DEM or GOP, is the China card….
Trump is not the first President to deploy the China card. Practically every el Presidente in the US since FDR had deployed the China card in one form or another for some badly needed political capitals and Trump of course is of no exception to this fact.
All the while, as he raises his fist and fires off salvo upon salvos of tarriffs on China and China returnes the favor, Ivanka Inc. strangely just go crazy in the Chinese market, so how seriously, do you guys think he will continue with his China card once he have his second held snuggedly in his hand?
Some food for thought fellas.
.
Simon Stevanovic
***rice patty***
And we thought freedom of speech was supposed to be (a Stevanovician ethic thingy). Not true I suppose.
Look, if you don’t want any responses from me, or from us, regardless if favorabke or unfavourable, then why didn’t you just say so? I mean if we would have known that you dosen’t appreciated being contradicted, we would have understand and simply let you talk to yourself.
BTW, on the subject of a retaliatory response: I had mentioned umpteenth of times that all involved would take on heavy loses, loses that’ll make for the next wildest of artificial habitats for marine lifes of the region and yet, no Hiroshima upon anyone cos Hiroshimas are simply too risky these days in case that’s what you are insinuating.
Mankind are still of the primordial hunter and prey stages of its development and as such hunting and being preyed upon will be a way of life for the human species until it evolves out of it’s aggressive hunter and prey natures and not believe that having bigger fangs and canines allows it to hunt at will and at its pleasure…
.
Simon Stevanovic
***rice patty***
And we thought freedom of speech was supposed to be (a Stevanovician ethic thingy). Not true I suppose.
Look, if you don’t want any responses from me, or from us, regardless if favorabke or unfavourable, then why didn’t you just say so? I mean if we would have known that you dosen’t appreciated being contradicted, we would have understand and simply let you talk to yourself.
BTW, on the subject of a retaliatory response: I had mentioned umpteenth of times that all involved would take on heavy loses, loses that’ll make for the next wildest of artificial habitats for marine lifes of the region and yet, no Hiroshima upon anyone cos Hiroshimas are simply too risky these days in case that’s what you are insinuating.
Mankind are still of the primordial hunter and prey stages of its development and as such hunting and being preyed upon will be a way of life for the human species until it evolves out of it’s aggressive hunter and prey natures and not believe that having bigger fangs and canines allows it to hunt at will and at its pleasure…
.