The leaders of the world’s top economies are gathered in Argentina today for two days of talks at the G-20 summit, which is being overshadowed by the U.S.-China trade dispute, the world’s two largest economies, which have imposed tariffs on hundreds of billions of dollars on each other imports, according to a report from Reuters.
A dinner is planned between President Trump and Chinese President Xi Jinping on Saturday to see whether they can make any progress toward resolving differences threatening the global economy. Before heading to Buenos Aires yesterday, President Trump said he was open to a trade deal with China. However, global financial markets, which have seesawed in recent days on concerns about trade tensions, could escalate on Monday depending on the outcome of the meeting between President Trump and President Xi Jinping.
China hopes to persuade President Trump to abandon plans to hike tariffs on $200 billion of Chinese goods to 25 percent in January, from 10 percent currently. “We hope the U.S. can show sincerity and meet China half way, to promote a proposal that both countries can accept,” Foreign Ministry spokesman Geng Shuang told a briefing in Beijing.
U.S. Trade Representative Robert Lighthizer said in Buenos Aires that he would be surprised if the dinner was not a success, but that it would depend entirely on the two leaders.
G-20 member nations will also try to reach agreement on major issues including trade, migration, and climate change, but it is unknown at this point whether the countries will be able to reach consensus, particularly on climate change. Earlier this month, officials from countries attending a major Asia-Pacific summit failed to issue a joint statement for the first time after the U.S. delegation clashed with China over trade and security.
However, delegates in Buenos Aires have indicated that progress has been made on economic sanctions and Argentina’s president voiced optimism. “As this is a difficult moment for international cooperation, I would like to appeal to the leaders to use this summit to seriously discuss issues such as trade wars, the tragic situation in Syria and Yemen and the Russian aggression in Ukraine,” European Council President Donald Tusk said at a news conference in Buenos Aires.
Highlighting the deep rifts within the G-20, Donald Tusk said the European Union would extend economic sanctions on Moscow next month, after Russian ships fired on Ukrainian ships in the Sea of Azov last week, seizing the boats and sailors.
The presence of Crown Prince Mohammed bin Salman at the summit also raised an awkward dilemma for leaders. Saudi Arabia’s de facto ruler arrived under controversy over the murder of Saudi journalist Jamal Khashoggi in the Saudi consulate in Istanbul in October.
