Pence-Xi showdown widens US-China rift
Trump and Xi are scheduled to meet in a few weeks at the G20 summit in Buenos Aires
US Vice President Mike Pence traded sharp barbs with Chinese leader Xi Jinping in back-toback speeches at a regional summit, showing that neither country appears to be giving ground in their trade war.
Xi received applause yesterday when he told the Asia-Pacific Economic Cooperation summit in Papua New Guinea that implementing tariffs and breaking up supply chains was “shortsighted” and “doomed to failure.”
He called for a stronger World Trade Organisation and defended China’s signature Belt-and-Road Initiative, saying it’s “not a trap as some people have labelled it.”
Speaking moments later, Pence told delegates the US offers countries in the region “a better option’’ for economic and diplomatic relations than Beijing’s heavy-handed approach. He warned against taking Chinese loans, saying the US “doesn’t drown our partners in a sea of debt” nor offer “a constricting belt or a one-way road.”
Stalemate continues
The back-and-forth on a cruise ship docked in Port Moresby suggested the world’s biggest economies remained far from a deal to end a damaging trade war even after President Donald Trump said he was optimistic about a resolution. Trump and Xi are scheduled to meet a few weeks from now at the Group of 20 summit in Buenos Aires.
Trump told reporters on Friday that the Chinese response to US trade demands was largely complete but was missing four or five big issues. Those comments helped US stocks erase losses, as investors bet on whether Trump will impose even more tariffs on Chinese goods than the $250 billion (Dh918 billion) already in place. China has slapped tariffs on $110 billion in imports from the US in retaliation.
Yesterday, Pence warned that Trump could still put more tariffs on China. “We hope for better, but the United States will not change course until China changes its ways,” he said.
Xi gave no indication of giving in on some key US demands, including an end to technology transfer, support for state-run enterprises, and giving up on its Made in China 2025 plan to lead the world in key industries. He said intellectual property rights are important to protect innovation but they shouldn’t widen the digital gap between countries.
Xi also made a veiled reference to a new grouping known as “the Quad” that aims to counter China’s influence in the Asia-Pacific. Consisting of the US, Japan, India and Australia, the group met in Singapore for the third time last week to discuss ways to cooperate.