It's not even certain if Xi will attend the summit despite Trump's blackmail threat to levy 25 percent tariff duties on $300 billion worth of Chinese exports to the us unless Xi attends. Trump is supposed to meet Xi during 28-29 June G-20 Summit which is going to held in Osaka, Japan.
Trump told reporters that he would impose tariffs of 25% or "much higher than 25%" on $300bn-worth of Chinese goods. "If the United States only wants to escalate trade frictions, we will resolutely respond and fight to the end".
Washington has put Huawei on a blacklist that effectively bars USA firms from selling to the company without government approval. Besides tit-for-tat tariff increases, the US has blacklisted Huawei Technologies Co. and threatened other major Chinese tech companies, while Beijing is drawing up a list of "unreliable entities" that could face restrictions. "If we have this information we will release it in due time", spokesman Geng Shuang said.
Dan Geltrude, the managing partner of Geltrude & Co., told Cheddar that China's strategy is to target key states where Trump has support, particularly from farmers. Contrary to the positive outcome which is being propagated, critics argue that the brunt is faced by the agriculture industry of the United States which has been the victim of retaliatory tariffs from countries like China. "Right now China is getting absolutely decimated by companies that are leaving China, going to other countries, including our own, because they don't want to pay the tariffs".
President Trump on trade negotiations with China. For China, 25 per cent tariffs could result in a drag of almost 1 per cent on growth by 2021 if they remain in place, according to Bloomberg Economics. It also wants curbs on subsidies for Chinese state-owned enterprises and better access for USA firms to Chinese markets.More news: Chris Froome to miss Tour de France, Team INEOS confirm
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"They certainly didn't listen to me because they made a big mistake", Trump said.
Political analysts said Trump wants another "win" to follow-up his tariff deal with Mexico on June 7, which is being ridiculed as nothing more than a rehash of commitments previously made by Mexico over the past five months. If Xi caves to Trump's threats, he risks looking weak at home.
On Tuesday, Chinese Foreign Ministry Spokesman Geng Shuang said that Beijing had noted recent U.S. remarks on its expectations of a meeting between the two leaders. We got everything we wanted.
Fitch Ratings said on Monday any such move would be disruptive to the United States technology sector and could hurt some Chinese sectors as well, though it added that it was too early to assess potential credit implications.
Xi and Trump met previous year in Buenos Aires and broke a prior impasse in trade talks.