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‘Back on track’: Trump, Xi agree to resume trade talks
(FILES) In this file photo taken on November 09, 2017, US President Donald Trump (L) shakes hand with China's President Xi Jinping at the end of a press conference at the Great Hall of the People in Beijing. - China said Monday, May 13, 2019 it will raise tariffs on $60 billion worth of US goods from June 1, in retaliation to the latest round of US tariff hikes and Washington's plans to target almost all Chinese imports. The announcement came after the latest round of US-China trade negotiations ended Friday, May 10, 2019 without a deal, and after Washington increased tariffs on $200 billion worth of Chinese goods. (Photo by Fred DUFOUR / AFP)

‘Back on track’: Trump, Xi agree to resume trade talks

OSAKA: US President Donald Trump said trade negotiations with China were “back on track” after “excellent” talks Saturday with his Chinese counterpart Xi Jinping in which Washington reportedly agreed to hold off on new tariffs.

The crunch talks on the damaging trade war between the world’s top two economies came on the sidelines of a meeting of the G20 in Japan’s Osaka, with all eyes on whether the pair would agree a truce.

“We had a very good meeting with President Xi of China,” Trump said after the talks. “I would say excellent.” “We are right back on track,” he added without confirming any details of any agreement.

Both sides were expected to issue official formal statements later, but Chinese state media said Washington had committed not to impose any new tariffs on Beijing’s exports and that the two sides had agreed to restart trade and economic talks.

The outcome was likely to be seen as a win, with experts cautioning ahead of the meeting that a full agreement was unlikely but a truce that avoided a new tit-for-tat round of tariffs would be positive.

Trump has struck a conciliatory tone since his arrival in Japan for the G20 summit, despite saying China’s economy was going “down the tubes” before he set out for Osaka, and appeared keen to reach an agreement.

He said he was ready for a “historic” deal with China as the leaders kicked off their meeting and Xi told him that “dialogue” was better than confrontation.

There were no immediate details about the leaders’ discussions, including whether they raised the thorny subject of Chinese telecoms firm Huawei.

Washington has banned the company over security concerns and China reportedly wanted the restrictions lifted under the terms of any trade truce.

The first tete-a-tete between the leaders of the world’s top two economies since the last G20 in December has cast a long shadow over this year’s gathering in Osaka, where differences over climate change have also been laid bare.

Donald Trump has said he expects a ‘productive’ meeting with Chinese President Xi Jinping (R) on the sidelines of the G20. Photo: AFP

 

Economists say that a lengthy trade war could be crippling for the global economy at a time when headwinds including increased geopolitical tensions and Brexit are blowing hard.

On Friday, the European Union and the South American trade bloc Mercosur sealed a blockbuster trade deal after 20 years of talks, with European Commission President Jean-Claude Juncker hailing it as a “strong message” in support of “rules-based trade.”

A diplomatic source said it had been a “difficult” night, with an American negotiator pushing a “very tough position” and a group including France standing united against watering down the climate language in the final statement.

But an agreement appeared to have been reached there too, with German Chancellor Angela Merkel telling reporters that the final communique would preserve language used at the two past G20 summits.

“We will have a similar text to Argentina. A 19+1 declaration,” she said.

 

The so-called 19+1 formulation reiterates the commitment of all G20 members except the United States to the Paris climate deal, from which Washington plans to withdraw.