A meeting between Donald Trump and Chinese President Xi Jinping, is due to take place this week at the G20 summit in Argentina. However, the business leaders and analysts have already started to express disappointment due to China-US tensions.
The Trump administration is set to increase tariff rate on $200 bn worth of Chinese exports to the US to 25 percent from 10 percent from January 1. Also, there is an imposed tariff on $250 bn of Chinese imports, so as to obtain some concessions from Beijing.
On Thursday, Trump spoke to media in Florida and said, “China wants to make a deal very badly – because of the tariffs.”
The upcoming meeting is the last opportunity for Beijing and Washington to resolve their trade differences and prevent additional US tariffs on Chinese exports in 2019.
President of the Beijing-based think-tank Center for China and Globalization, Henry Wang, was shocked to hear US Trade Representative Robert Lighthizer’s statement last week that said China had failed to alter “unfair, unreasonable, and market-distorting practices”.
In an interview, Wang said, “It’s not appropriate to publish this negative report prior to the summit. It’s not conducive to constructive dialogue, and it just doesn’t look good.”
On Friday, China’s Commerce Ministry spokesman, Gao Feng howled at the Trump administration for making “totally unacceptable” and “groundless” new accusations against China.
President of the American Chamber of Commerce in China, William Zarit, doesn’t believe in the ideology of imposing tariffs to address trade concerns. “Applying pressure without also engaging in negotiations is unlikely to yield the optimal outcome,”Zarit said.
During a World Trade Organization (WTO) meeting in Geneva on Wednesday, mutual mistrust between the two countries could be seen clearly. The China-US tensions escalated, when the envoys from both the countries accused each other of hypocrisy and mocking the rules of WTO.
The rising China-US tensions have brought in a new round of speculations that claim the end result of the upcoming G20 meeting would only be a confrontation, instead of collaboration.