Earlier today, Trump’s chief economic advisor Larry Kudlow poured cold water on expectations for an imminent resolution of the US-China trade war when he said that negotiations in the run up to this week’s G-20 talks “haven’t yielded any progress”, and unless something changes, the “administration will move ahead with the next phase of tariffs.”
“Things have been moving very slowly between the two countries,” Kudlow said, adding that it was up to Xi to come up with new ideas to break the deadlock. And, echoing a report from the US Trade Representative published earlier this month, Kudlow said there hasn’t been much of a change in China’s approach. “We can’t find much change in their approach,” Kudlow told reporters. “President Xi may have a lot more to say in the bilateral [with Mr Trump], I hope he does by the way, I think we all hope he does…but at the moment, we don‘t see it.”
Just a few hours later, a report by Reuters confirmed that Kudlow won’t be “seeing it” for a long time, because according to China’s ambassador to the US, Cui Tiankai, China is going to this week’s G-20 summit hoping for a deal to ease a damaging trade war with the United States, even as he warned of “dire consequences” if U.S. hardliners – read the trade hawks led by Peter Navarro – try to separate the world’s two largest economies.
Asked whether he though hardliners in the White House were seeking to separate the closely linked U.S. and Chinese economies, Cui said he did not think it was possible or helpful to do so, but warned that “I don’t know if people really realize the possible consequences – the impact, the negative impact – if there is such a decoupling.”
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