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What Underlies US-China Tensions Ahead of Crucial G-20 Meeting?

30 Novembre 2018

President Trump on Tuesday threatened to cancel an upcoming meeting with Russian President Vladimir Putin after the nation fired at Ukrainian naval vessels and seized multiple ships and their crews over the weekend. But given the dysfunction at those other summits, the G20 leaders are expected to stop short of repeating their vows to fight protectionism, which were a founding principle in 2008.

Gurria said the impact of existing US trade tariffs of 10 percent on Chinese goods amounted to a loss of 0.2 percent of global gross domestic product by 2020.

This year's G20 summit is also grappling with how to handle the presence of Crown Prince Mohammed bin Salman.

Trump's trade war on China is already well underway, and he is threatening to impose deeper tariffs in January unless Chinese leader Xi Jinping yields when they meet on the G20 sidelines. Such an outcome would address some longstanding non-tariff practices and help deliver free but fairer trade for the global economy as a whole.

He also voiced hope for greater relations with Argentina, seeing pharmaceuticals, energy and information, and aerospace technology as areas of cooperation.

Trump has also harshly criticized GM for building cars in China. "I think [that] has made it harder ... to get progress in these forums". Similar proposals were blasted by conservatives as proposals to "turn the United States into a agricultural colony of China". The administration this summer removed hundreds of items from the list of imported goods subject to tariffs after lobbying from USA companies.

Trump - and especially officials in his administration - have tried traditional diplomatic strategies.

"The Hundred-Year Marathon" author Michael Pillsbury on the Trump administration's trade negotiations with China.

"Any trade debate should convey a clear understanding of the effect of the U.S.' and its trading partners' actions on consumers, businesses and supply chains", said Philip Ellender, Koch Industries president of government and public affairs, told CNBC.

"We're in very good shape", Kudlow said. Although he now has 3,000 manufacturing workers in China, he plans to open a factory with 500 in Vietnam so his business remains financially attractive to US buyers. "So I think you're seeing both the interpersonal one-on-one dynamic, but then there is that multilateral framework".

"If they did make the smartphones in the USA, it would add somewhere between 20% to 35% more to the final consumer prices of the phones sold to the public", Creative Solutions president Tim Bajarin said. In securities filings, Apple has said that "international trade disputes could result in tariffs and other protectionist measures that could adversely affect" its business.

"I think unfortunately, the United States and China remain quite far apart in the issues behind the trade conflict, so we are not too optimistic", says Valerie Mercer-Blackman, senior economist at the Asia Development Bank.

In the lead-up to Saturday's dinner Trump has oscillated between trying to appear tough and committed to his tariffs-driven strategy and opening the door to a deal with Xi.

Automakers, dealers, and suppliers have come out against any new tariffs, arguing that they would hurt even US-based companies and the US's worldwide competitiveness.

"President Trump is right to have zeroed in on China's unfair trade practices, but a trade war with China isn't good for the world's economy over the long term, and it's not good for the US economy either", said Delaware Sen.

"The only deal that would really be acceptable to me, other than obviously we have to do something on the theft of intellectual property rights, the only deal would be China has to open up their country to competition from the United States", he said.

What Underlies US-China Tensions Ahead of Crucial G-20 Meeting?