This year’s biggest showdown has been the trade war between China and the U.S. It all started with the U.S. slapping import duties on several Chinese goods, and the latter reciprocating with similar measures. This has rattled economies world over. Experts predict global growth to slow down owing to the face-off.
Given the magnitude of the situation, all hopes are now set on the G20 summit in Argentina. Everyone is hopeful that U.S. President Donald Trump and his Chinese counterpart Xi Jinping will thrash out a win-win solution.
Continuing Mistrust between the Nations
However, so far things haven’t been looking that promising. Just last week US Trade Representative Robert Lighthizer blamed China for continuing with its unfair trade practices. He added that it was market-distorting. He also called it unreasonable.
This took many by surprise in China.
For example, president of Beijing-based think-tank Center for China and Globalization Henry Wang said it’s inappropriate to publish such statements. Especially just before the crucial G20 Summit. It may not prove to be conducive for dialogues.
Now officials in Beijing have reciprocated in equal measure. The spokesperson of the Commerce Ministry of China Gao Feng has said that the allegations are baseless and completely unacceptable.
Most experts and concerned officials feel that the constant mistrust of the U.S. has led to diminishing trust.
Such a grim outlook has already riled stock markets of Shanghai and Hong Kong. Investors withdrew en masse fearing a full blown trade war that would hamper business growth.
In the wake of such a fallout, hopes are now pinned on the G20 Summit.