United States asks China to break impasse in trade talks

The G20 has tasked the Organisation for Economic Cooperation and Development to fix an international tax system. — AFP

The G-20 officials said they would work with other members of the global organization that regulates trades between governments to undertake WTO reforms "with a sense of urgency".

Mnuchin had earlier played down expectations for the meeting with Yi, which took place on the sidelines of a gathering of Group of 20 finance ministers and central bankers in Fukuoka, Japan.

In separate comments this week, Fed Chair Jerome Powell and his No. 2, Richard Clarida, reassured nervous investors they're watching closely for signs that disputes between the US and its trading partners are denting the outlook for the world's largest economy.

"However. risks remain tilted to the downside".

Global trade tensions threaten an expected pick-up in economic growth this year and in 2020, a draft communique by the world's financial leaders showed on Saturday, but the policymakers were divided on whether the need to resolve them was "pressing". "We will continue to address these risks, and stand ready to take further action".

He noted that the meeting would have two parts - one focused on general macroeconomic issues, such as currencies, and a separate discussion about trade. The PBOC said in a statement that the two finance officials "exchanged views on global economic and financial situation, G20 issues, as well as topics of mutual interest".

On Sunday, U.S. Treasury Secretary Steven Mnuchin met with China's central bank Gov. Yi Gang.

Last week, China's Commerce Ministry said it will soon release a list of "unreliable" foreign companies in a move seen as a response to the US decision to penalize Huawei for alleged theft of intellectual property and evasion of Iran sanctions. At the same time he admitted that he would be willing to yield some of it to get a better deal in the ongoing "trade war" with China.

Nevertheless, Mnuchin also pointed to the positive boost to the world economy that could result from a breakthrough in trade talks, likely to be the main focus of a meeting between the U.S. and Chinese leaders at a G20 summit later this month.

Mnuchin heads into his meeting with Yi after a week of globe-trotting with Trump.

"They didn't even respect us", Trump said. The country has hinted at cutting off the USA supply of rare earth elements and is also hitting America's education and tourist sector by announcing visa restrictions.

If Xi doesn't meet with him, Trump said that he will move forward with tariffs on $300 billion in Chinese imports, which includes numerous consumer products.

The G20 ministers heaved a sigh of relief just hours before the meeting when the United States and Mexico signed an immigration deal that prevented Washington from imposing a 5% tariff on Mexican goods. He said the only reason Mexican officials agreed to changes was because he threatened their goods with tariffs. "We recognize the contribution that the multilateral trading system has made to that end".

Trump has said the Fed should not have raised interest rates last year and has pushed them to cut interest rates this year, among other things.