China and the United States are destined to meet during the G20 summit that will start on November 30. Larry Kudlow, White House economic adviser, said on Tuesday that he is expecting a direct confrontation over trade between the two big economies during the meeting as plans of talks scheduled in the White House failed.
A high-level Chinese delegation was scheduled for a trip to Washington amid an on-going exchange of criticisms between U.S. President Donald Trump and Chinese President Xi Jinping. According to Kudlow, the key point of the G20 meeting is the trade conflict between the U.S. and China. His comment came after the delegation's trip to the U.S. capital was canceled.
On Tuesday, China's Foreign Minister spokesperson, Geng Shuang released a statement that Vice Premier Lui He is scheduled to travel to Germany to respond to the invitation of vice-chancellor and finance minister Olaf Scholz.
Trump, on Friday, said that he is hopeful that he could reach a deal with China before January 1 following a new set of tariffs to be implemented that will raise obligations to around 25 percent on consumer goods. During his statement, the president labeled a list of 142 concessions provided by China as "not acceptable"
American businesses are now complaining because of the additional obligations caused by the new round of tariffs. Economists also fear that it may renew inflation since the Federal Reserve is scheduled to increase interest rates in December.
Recently, Vice President Mike Pence delivered a speech to the Asia-Pacific Economic Cooperation summit pressuring China to "change its ways". According to him, Trump wasn't in a rush to end the trade war. In fact, he is willing to "more than double" the tariffs imposed on Chinese goods. He said that the United States "will not change course until China changes its ways".
President Xi responded to Pence's speech by criticizing its "winner-takes-all strategy. Xi suggested that the differences between the two country's policies must be settled "through consultation". He said that confrontations, whether in the form of a cold war, or a hot war, or a trade war, will produce no winners.
The conflict between the two nations broke the 25-year tradition of the APEC summit after they failed to agree on a joint statement over a paragraph on trade. It is believed that the proposed flight of the Chinese delegate to Washington ahead of the Argentina meeting could reach a good deal beforehand.
