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A4 U.S. NEWS
Tuesday 27 November 2018

Global trade is at stake as Trump and Xi come face to face

By PAUL WISEMAN, AP Eco- only on Chinese goods but
nomics Writer also on imported steel and
WASHINGTON (AP) — To other goods from other
hear President Donald countries.
Trump tell it, he was made “We need some certain-
for a moment like this: A ty,” said Craig Allen, presi-
high-stakes face-off. A tick- dent of the U.S.-China Busi-
ing clock. A cagey adver- ness Council and a former
sary. American diplomat.
The man who calls himself “The U.S. and China cannot
a supreme dealmaker will go into a trade war and not
have the opportunity this affect global markets ... We
week to put himself to the need to resolve our differ-
test. The question is whether ences.” Yet as Trump and Xi
he can defuse a trade war prepare to meet, the back-
with China that is shaking fi- drop is hardly encouraging.
nancial markets and threat- Acrimony between the two
ening the global economy sides disrupted this month’s
— and perhaps achieve Asia Pacific Economic Co-
something approximating operation summit in Papua
a breakthrough. New Guinea.
Trump is to meet with his The 21 APEC countries, torn
Chinese counterpart, Xi by differences between
Jinping, during the Group Beijing and Washington,
of 20 summit in Buenos Ai- failed to agree on a dec-
res, Argentina, on Friday laration on world trade for
and Saturday. Unless the In this Nov. 9, 2017, file photo, U.S. President Donald Trump and Chinese President Xi Jinping par- the first time in nearly three
two leaders can achieve ticipate in a welcome ceremony at the Great Hall of the People in Beijing, China. decades. Vice President
a truce of sorts, their con- Associated Press. Mike Pence and Xi sniped
flicts will likely escalate: On know, it’s not like, ‘Oh, gee, tory tactics in its drive to higher import tax. at each other in speeches.
Jan. 1, the tariffs Trump has I’m going to sit down and supplant America’s tech- Growing concerns that the Then last week, U.S. Trade
imposed on many Chinese study.’ I know every stat. nological dominance. The trade war will increasingly Rep. Robert Lighthizer is-
goods are set to rise from I know it better than any- administration alleges — hurt corporate earnings sued a report charging
10 percent to 25 percent, body knows it. And my gut and many trade experts and the U.S. economy are China’s efforts to steal U.S.
and Beijing would likely re- has always been right.” agree — that Beijing hacks a key reason why U.S. stock trade secrets have “in-
taliate. Most trade analysts are into U.S. companies’ net- prices have been sinking. creased in frequency and
Most analysts have said skeptical that any signifi- works to steal trade secrets As of Friday’s close, the sophistication” this year de-
they doubt Trump and Xi cant agreement is likely this and forces American and Standard & Poor’s 500 in- spite American sanctions.
will reach any overarching week. other foreign companies to dex has shed roughly 10 of “China fundamentally has
deal that would settle the “Expectations should be hand over sensitive tech- its value since setting a re- not altered its acts, poli-
dispute for good. very low,” said Wendy Cut- nology as the price of ac- cord high Sept. 20. cies, and practices related
The optimistic view is that ler, vice president of the cess to China’s market. Joining other forecasters, to technology transfer, in-
the two sides may agree Asia Society Institute and Beijing disputes those al- economists at the Organi- tellectual property, and in-
to a cease-fire that would a former U.S. trade official legations and asserts that zation for Economic Co-op- novation, and indeed ap-
buy time for more substan- who negotiated with Chi- Trump’s sanctions are eration and Development pears to have taken further
tive talks and postpone the na. “We need to be very merely an effort to hinder last week downgraded unreasonable actions in
scheduled escalation in U.S clear-eyed. It’s going to be an ambitious rival. their outlook for global eco- recent months,” the report
import taxes. a very difficult negotiation. Besides the scheduled es- nomic growth next year to concluded.
Yet no one really knows. The issues at hand don’t calation in U.S. tariffs on 3.5 percent from a previous The tenor of the report
Each side seems prepared lend themselves to quick $200 billion in Chinese 3.7 percent. suggested that the United
to wait out the other in a solutions.” goods — an additional $50 In doing so, they cited the States would take a hard
conflict that could persist The trade war erupted last billion in Chinese imports al- trade conflict as well as po- line into this week’s talks.
indefinitely. fall after Trump imposed ready face the higher tax litical uncertainty. In the meantime, “the
In advance of the meet- import taxes on $250 billion — another threat looms: Some big U.S. companies, amount of uncertainty is
ing, Trump has sounded his of Chinese goods, and Bei- Trump has threatened to in reporting quarterly earn- unprecedented and very
usual note of boastful confi- jing retaliated with tariffs on tax $267 billion more in Chi- ings in October, warned disquieting to the markets,”
dence. Speaking to report- U.S. exports. The justification nese imports. that they were absorbing said Allen of the U.S.-China
ers on Thanksgiving Day, he for the U.S. move, accord- At that point, just about ev- higher costs from Trump’s Business Council.
said: ing to Trump, is that Beijing erything Beijing ships to the increased tariffs, which
“I’m very prepared. You has long deployed preda- United States would face a have been imposed not Continued on Page 5