Business Lobby: Xi G20 Meeting to Help Prevent Trade War Escalation

Business Lobby: Xi G20 Meeting to Help Prevent Trade War Escalation

China will finally add fentanyl and its analogs to its list of controlled substances, following a Saturday meeting between Chinese president Xi Jinping and President Donald Trump.

So anyone out there looking to go long on the idea that American and China will quell this simmering trade war should be a little concerned with what Kuddles told Fox Business today.

The Trump-Xi meeting was the marquee event of Trump's whirlwind two-day trip to Argentina for the G-20 summit after the president canceled a sit-down with Russian President Vladimir Putin over mounting tensions between Russia and Ukraine.

"The history here with China promises is not very good".

White House economic advisor Larry Kudlow said he expected the 25 percent punitive tariffs on USA farm goods to be rolled back and urged China to take immediate steps to implement some of its commitments in order to give them "more credibility".

U.S. President Donald Trump and Chinese President Xi Jinping agreed to hold off on new tariffs for 90 days during talks in Argentina on Saturday, declaring a truce following months of escalating tensions on trade and other issues.

The United States and China are locked in a dispute over their trade imbalance and Beijing's tech policies. The delay will start January 1 and last 90 days, pending further trade negotiations. Experts say that is not a lot of time.

The U.S. and China also made progress on the regulation of fentanyl, which is 50 times more powerful than heroin. He added that the Chinese put more on the table than the US side had seen before.

Raymond Yeung is an economist at the Australia and New Zealand Banking Group.

"It's great the two sides took advantage of this opportunity to call a truce", said Andy Rothman, investment strategist at Matthews Asia. But the across-the-board scheduling of all analogs, if actually implemented, could substantially change the shape of Chinese drug production and thereby the USA drug crisis. China is willing to absorb economic losses in exchange for standing firm on issues vital to the national interest. He said it was clear that both governments want to talk and work out their differences, but the agreement is only a "ceasefire". That would still take effect if the sides can not agree to a larger trade deal within the three-month window.

The two nations agreed to wait to implement any major new tariffs or trade restrictions, but that doesn't mean that they didn't make any other deals in the meantime.

The Senate has yet to make its version of the legislation, though Senator Orrin Hatch, the Utah Republican who chairs the Finance Committee, said earlier this month it's possible an extension will be included in the bill.

Washington also regards Beijing's ambitious long-term development plan, "Made in China 2025", as a scheme to dominate such fields as robotics and electric vehicles by unfairly subsidising Chinese companies and discriminating against foreign competitors. Many other countries worry the plan will only worsen trade problems.

Parag Khanna, founder of the FutureMap consultancy and author of the forthcoming book The Future is Asian, noted that in speeches to domestic Chinese audiences, Xi is still promoting the economic self-reliance that Made in China 2025 symbolises. They include information technology; robotics; medicine and medical equipment; and ocean engineering equipment.

That's precisely why China's statement highlighted Trump's apparent commitment to continue respecting the so-called one China policy - something not mentioned by the Americans. The article suggested that his presence shows the deal with China has wide support in Washington. Susan Shand adapted it for Learning English.

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