President Trump reaches truce with Chinese officials
Dec 05 2018
But as trade lawyer and Cato Institute scholar Scott Lincicome points out, "with no joint statement and list of actual/concrete deliverables, how will both sides (and the public) measure success or failure in 90 days?"
It remains uncertain how the two sides will resolve underlying U.S. concerns over trade barriers, subsidies and alleged technology theft.
Earlier this year, the Trump administration imposed new tariffs on almost $250 billion worth of Chinese goods, to force Beijing to end its unfair practices.
Trump agreed to hold off on his threat to slap 25 per cent tariffs on US$200 billion worth of Chinese goods from Jan 1, leaving them at the current 10 per cent rate.
One of China's major concerns is USA interference in areas it considers "internal" matters.
What was agreed at the G20?
"President Trump and President Xi have agreed to immediately begin negotiations on structural changes with respect to forced technology transfer, intellectual property protection, non-tariff barriers, cyber intrusions and cyber theft, services and agriculture".
In addition, the U.S. said China agreed to "purchase a not yet agreed upon, but very substantial, amount of agricultural, energy, industrial, and other products from the United States".
What's missing in China's official statement?
Despite the positive talks so far, these policies will likely cause the most issues nearing the 90-day deadline. Most critically, the Chinese government statement did not explicitly mention the 90-day time window, though it says the two sides will "speed up" talks.
On the United States side, these included advisers such as Kudlow and Treasury Secretary Steven Mnuchin, who are widely seen as wanting to cut a deal, but also hawkish advisers like Peter Navarro and USA trade representative Robert Lighthizer.
But he tweeted that at "at some time in the future", Xi, Russian President Vladimir Putin of Russia, and he "will start talking about a meaningful halt to what has become a major and uncontrollable Arms Race".
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China's state-run media cautiously welcomed the Buenos Aires agreement.
Beyond the trade deficit that occupies much of Trump's attention, the US has a long list of grievances it wants to address with Beijing in any upcoming negotiations.
"President Xi and I have a very strong and personal relationship".
What pushed the two sides to the table?
"Xi avoids further immediate pressure on China's slowing economy, while Trump â€" hit by the US Democrats' congressional win in last month's mid-term elections â€" can ease damage to agricultural US states that export to China. But, taken at face value, the president's comments should allow companies who build cars in America and sell them in China to breathe a sigh of relief.
China has its own grievances.
Will this resolve the dispute?
The two are trying to negotiate the end to a trade conflict that is rattling financial markets and threatening the world economy.
"We all realize that we are indirectly influenced by the fact that Sino-American economic relations are not running as smoothly as a world order needs", she said.
"It's an incredible deal", Trump told reporters aboard Air Force One after the summit.
Mr Trump has been willing to declare victory with only modest concessions in the past, pointing to new trade deals with South Korea, Canada and Mexico, he added.
Trump cancelled his much anticipated meeting with Putin at the last minute, tweeting the cancellation a little more than an hour after saying that the conversation was still on, and adding that the cancelation was related to the fact that Russian Federation hasn't returned the Ukrainian ships and sailors detained following the Kerch Strait incident.