Trump-Xi consensus reached on trade but statements differ — Global Geopolitical Series

Eileen GuzmanDec 06, 2018

U.S. indexes rose about 1% on Monday, following gains in Europe and Asia.

Wang added that China is willing to expand imports from the U.S. according to "the needs of the domestic market and the Chinese people" and that both parties are working to remove all tariffs, according to China Daily.

It remains uncertain how the two sides will resolve underlying USA concerns over trade barriers, subsidies and alleged technology theft.

The two countries are also at odds militarily over China's extensive claims in the South China Sea and US warship movements through the highly sensitive Taiwan Strait. Meanwhile, the Xinhua news agency also reported, citing the Chinese Foreign Ministry, that the two countries had agreed to expedite talks toward eliminating all additional tariffs. However, the losers of the 10% trade tariff imposed on Chinese goods are American farmers who have been hurt by reduced Chinese imports of soybeans and other products.

G20 nations were still struggling to agree on the wording for the summit's communique on major issues including trade, migration and climate change, which in past years have been worked out well in advance. Kudlow initially said that the Chinese had 90 days from January 1 to come up with "structural changes" regarding intellectual property protections, forced technology transfer and other issues.

While the Trump administration emphasized trade issues such as a 90-day moratorium on raising tariffs and Xi's concession to buy "very substantial" amounts of USA goods, China focused on diplomacy, regional issues and an agreement to try to quickly resolve their differences.

The tweets come as the president said China would commit to removing heavy auto tariffs on US made cars.

What's missing in China's official statement?

Several bike industry leaders have said closing that loophole would help the industry and create more fair trade than tariffs.

The United States has slapped steep tariffs on Chinese goods valued at $250 billion since the beginning of July, while China has retaliated with reciprocal tariffs on $110 billion worth of USA goods.

The first day of the G20 summit offered glimmers of hope for progress between Washington and Beijing despite Trump's earlier threat of new tariffs, which would increase tensions already weighing on global financial markets. The agreement keeps those tariffs at 10 percent for at least the next 90 days while the countries negotiate further.

What pushed the two sides to the table?

Unrelated directly to trade, China has agreed to crack down on the production and distribution of Fentanyl. These tariffs also will not be implemented before March 1, 2019. Trump wrote on Twitter. But the highly anticipated talks in Buenos Aires have produced a welcome consensus that the two sides will work on ways to resolve their differences.

"There should be no wishful thinking that the truce would end the trade war between the world's two largest economies", DBS strategist Philip Wee wrote in a research note.

However, Andrew Hunter, US economist for Capital Economics, said he is optimistic that the apparent "ceasefire" will hold, even though the two sides have been in similar positions before.

On the USA side at the dinner, Trump was accompanied by advisers such as Larry Kudlow and Treasury Secretary Steven Mnuchin, who are widely seen as wanting a deal.

Other news in the US took some of the spotlight off of Trump's trip.

The U.S. delegation included Secretary of State Mike Pompeo, Treasury Secretary Steven Mnuchin, Chief of Staff John Kelly, U.S. Trade Representative Robert Lighthizer, national security adviser John Bolton, assistant to the president and senior adviser Jared Kushner, assistant to the president for trade and manufacturing policy Peter Navarro, and assistant to the president for economic policy Larry Kudlow.

Related Articles:



Next article »


Popular Pages

Israel military moves to 'expose and thwart' Hezbollah tunnels from Lebanon
In 2012, Israel became aware of Hezbollah's "plan to conquer the Galilee", as it was termed by Hezbollah leader Hassan Nasrallah. Hezbollah, meanwhile, has also been heavily engaged in Syria, where it is battling alongside government forces.

Graham wants Senate resolution on Saudi prince
Senators overwhelmingly voted last week to move forward on a resolution curtailing US backing for the Saudi-led war in Yemen. Khashoggi , a U.S. resident who wrote for the Washington Post, was killed inside the Saudi consulate in Istanbul in October.

Saudi crown prince arrives in Algeria
Opposition newspaper Liberte further published a cartoon showing a ghost telling the Saudi crown prince, "This is Bouteflika ". Speaking to CNN , Abdulaziz said that Jamal believed bin Salman, commonly referred to as MBS , was the problem.

US Secretary of Defense: Vladimir Putin is "slow learner"
However, Mattis said that he didn't think the threat from Russian Federation to American elections had increased. On Saturday, Putin said he hopes a meeting with Trump will take place "when the USA is ready". "Mr.

Ballon d'Or victor Hegerberg plays down sexism row over 'twerk' request
He tweeted , "I didn't know that this could be seen as such an offense", and added: "This was a joke, probably a bad one". Afterwards Hegerberg said it felt "incredible" to be the first female victor of the Ballon D'Or .

Ex-Seahawks player Brandon Browner sentenced to 8 years for attempted murder
He allegedly broke a locked window and stole a $20,000 Rolex watch before fleeing the scene. Brandon Browner's mug shot from the La Verne (Calif.) Police Department.

Knowledge-sharing site Quora says 100 million users hit by security breach
It found that that some user data was compromised by a third party who gained unauthorised access to one of its systems. The hackers also obtained details about users' activity on Quora, such as questions, answers, upvotes and downvotes.

Ukraine bans Russian men from entering the country
Kiev last week imposed martial law for 30 days in 10 regions that border Russian Federation , the Black Sea and the Azov Sea. Poroshenko said on Monday that some reservists will be summoned for training as part of martial law.

Hardcastle: New NAFTA deal is an 'epic, epic fail'
In October the Port of Los Angeles - the nation's largest port - had the busiest month in its 111-year history. It's not going to be easy, but I do think it is different from when the first NAFTA was passed.

Relax! You'll still be able to stream Friends in SA
According to Decider , Friends will be gone as of January 1st, 2019 and fans have taken to Twitter with all kinds of sentiments. Similarly, Netflix chief content officer Ted Sarandos told The Hollywood Reporter that the "departure is a rumor".