Business World

China blames ‘excuses’ for APEC summit discord as US ties sour further

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BEIJING — The failure of the countries attending a major Asia-Pacific summit to agree on a communique resulted from certain countries “excusing” protection­ism, a top Chinese diplomat said, in a veiled criticism of Washington that further sours China-US ties ahead of a meeting of the Group of 20 (G20) nations

In Washington, a White House official rejected the Chinese line as “complete spin and propaganda” and said the standoff did not raise hopes for a positive meeting between US President Donald Trump and Chinese President Xi Jinping at the G20 next week.

After months of bickering over trade, the disputed South China Sea and US support for Chinesecla­imed Taiwan, Messrs. Xi and Trump took a step back from the edge with an ice-breaking telephone call early this month.

They expressed optimism about resolving their trade war ahead of the G20 in Argentina, but the past weekend’s Asia-Pacific Economic Cooperatio­n (APEC) summit was marked by open disagreeme­nt between the US and China over trade, security and which would be the better investment partner for the region. For the first time, the gathered leaders failed to agree to a joint communique.

In comments on the Chinese foreign ministry’s website late on Monday, China’s top diplomat, State Councillor Wang Yi, said this was “by no means accidental.”

“It is mainly that individual economies insisted on imposing their own texts on other parties, excusing protection­ism and unilateral­ism, and not accepting reasonable revisions from the Chinese and other parties,” the ministry cited Mr. Wang as saying, in an oblique reference to the US.

“This practice caused dissatisfa­ction among many economies, including China, and it is obviously not in line with the consensus principle adhered to by APEC.”

On Monday, China’s foreign ministry said the US, whose APEC delegation was led by Vice-President Mike Pence, attended the summit in a “blaze of anger” and that China had not gone to “get into a boxing ring.”

Pence said the US would not back down from the trade dispute, and might even double tariffs, unless Beijing bowed to US demands.

On Tuesday, a Chinese foreign ministry spokesman added to the criticism of the failure to sign the communique.

“An individual member” of APEC would not heed other members and insisted on trying to add content “harming other countries’ basic interests,” trying to “put on a coat of legitimacy to its protection­ist, unilateral­ist ways,” Geng Shuang told a daily news briefing.

‘PAYING LIP SERVICE’

Speaking to Reuters, a White House official said the suggestion that the US was responsibl­e for the APEC breakdown was “complete spin and propaganda from the Chinese.”

“All 20 out of 21 nations were prepared to sign on with the language that was finalized with the exception of China,” said the official, who did not want to be identified by name, adding that China had seen a line in proposed text referring to unfair trade practices as a veiled shot at it.

“We were pushing to get this done, and they just were not having it,” the official said.

The official said it did not bode well for the Trump-Xi G20 meeting.

“The White House saw ASEAN and APEC as setting the stage for the G20; Pence spoke with the Chinese premier at ASEAN briefly and with Xi at APEC briefly about what President Trump wants to discuss at the G20.

“We want to be hopeful,” the official said. “I wouldn’t say expectatio­ns are high after our experience.”

The trade dispute between China and the US, the world’s two largest economies, has weighed on financial markets ahead of the meeting in Argentina, which some have billed as the most important in years between the two countries.

Mr. Trump has imposed tariffs on $250 billion worth of Chinese imports to force concession­s on a list of demands that would change the two countries’ terms of trade. China has responded with import tariffs on US goods.

Washington wants Beijing to improve market access and intellectu­al property protection­s for US companies, cut industrial subsidies and reduce a $375-billion trade gap.

Last week, Reuters reported that China had delivered a written response to US demands for widerangin­g trade reforms, though a senior Trump administra­tion official said it was unlikely to bring a breakthrou­gh during the two leaders’ talks.

It appeared Messrs. Trump and Xi had indicated to senior advisers that they wanted to flesh out a deal, Craig Allen, the president of the US-China Business Council, told Reuters this month.

“This could be the basis for a ceasefire, a halt to new tariffs, and an opportunit­y for new negotiatio­ns,” Mr. Allen said of the planned G20 meeting. “But I don’t think it’s a guaranteed slam dunk.” —

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