Feisty Trump sets tone as stormy G20 looms

China and the US have slugged heavy tariffs on each others' imports

China and the US have slugged heavy tariffs on each others' imports

Trump made it clear the complete opposite outcome is on the table as new tariffs on $300 billion of new goods would be levied on China if he doesn't like what Xi has to say.

The report says that China president Xi Jinping will use the meeting with United States president Donald Trump to set out terms that the U.S. should meet before Beijing would be ready to achieve a trade truce between the two countries.

Pence postponed a speech about China's human rights record and national security concerns that had been scheduled for June 24 in order to avoid antagonizing the Chinese in advance of the Trump-Xi meeting. However, on Thursday, Trump's top economic advisor Larry Kudlow said in an interview with Fox News that no official agreements have been made, and the USA may green light the remaining tariffs.

Several experts said the focus on Trump and the talks with China struck at the heart of the G20 format, created to craft a united global response to the Lehman Brothers crisis.

To lay the groundwork for a successful two-day summit to tackle pressing global challenges, Prime Minister Shinzo Abe, who is hoping to emphasize G-20 unity rather than divisions, held a series of bilateral meetings with his counterparts, including Chinese President Xi Jinping and Indian Prime Minister Narendra Modi.

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Officials also want the U.S. to reverse a ban on the sale of United States technology to the Chinese telecommunications firm Huawei Technologies, which was announced last month in an executive order.

"The speech was a very powerful way of communicating to the world that we need to have measures to remove all barriers for trade. and we need to strengthen the multilateral institutions like WTO, the World Trade Organization", he said.

Yet the gains were small and underscored uncertainty over whether the talks will produce definitive progress in ending the year-long trade war between the world's two largest economies.

While inflation expectations in the United States and Europe have declined in recent weeks, as measured by forward-starting swaps, USA gauges have stabilised after the Federal Reserve opened the door to rate cuts last week.

He later urged G20 leaders to send a strong message in support of free and fair trade, warning that trade and geopolitical tensions were rising and downside risks to the global economy prevailed.

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Trump said the two leaders would also discuss Japanese purchases of U.S. military equipment, although a Japanese official said later the topic did not come up.

Trump said Wednesday he would like to see a deal but is content with where things are now. However, he said he was still optimistic about reaching a breakthrough in negotiations.

The U.S. delegation also tried - less convincingly, perhaps - to set China apart from other countries on Trump's trade policies and use of tariffs.

White House officials, including the president, appeared Friday to be trying hard - in symbolism and words - to isolate Xi on a list of economic and security issues.

"I appreciate the fact that you're sending many automobile companies into MI and OH and Pennsylvania and North Carolina", referring to USA states critical to his effort to win re-election next year.

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China's initiative to jointly build the Belt and Road aims to mobilize more resources, strengthen connectivity, unleash driving force for growth, realize market alignment and incorporate more countries and regions into economic globalization, said Xi.

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