|On Monday, US President Donald Trump warned China of imposing huge new tariff if his counterpart Xi Jinping did not come for the face-to-face meeting scheduled for later this month. Trump also mentioned that the Chinese economy would never overtake the United States.
Trump is expecting to have a face-to-face meet with Xi at G20 summit on June 28-29 in Osaka, Japan, although China has yet to officially confirm any such meeting. If the meet took off well it would mark a turning point in the trade dispute between the world’s two biggest economies.
In an interview with CNBC television, Trump confirmed that in case the Chinese Premier fails to attend the summit, US would levy additional tariffs on a further $300 billion in Chinese imports.
Trump said, “I would be surprised if he didn’t go, I think he’s going, I haven’t heard that he’s not.”
China’s foreign ministry said on Monday that China is open to more trade talks with Washington but has “no information at present” regarding Trump-Xi talks.
Washington is using tariff tactic as a core point of its foreign policy, to threaten its rivals especially China and even some of its close allies, such as Canada, the European Union.
It is said that Trump administration is using strongarm to make sure that Chinese economy is not never able to overtake the US as the world’s top economy.
With respect to rising tariff, Trump hinted that he is trying to move manufacturers out of China. He accused China of following a deceptive trade policy wherein it forces US importers to give up intellectual property, while subsidising its own companies, and earning a huge trade surplus with Washington.
He said, “Those companies are going to move into other locations and there won’t be a tariff.”
He added, “In a game of tit-for-tat, China will lose simply because they have far fewer US imports they can target. We have the big, big advantage. China’s going to make a deal because they’re going to have to make a deal.”
The trade talks between the world’s biggest economies started to take a downturn earlier this month, when the Trump administration accused China of having “reneged” on its previous commitments of making structural changes, while Chinese officials argued that Americans raised their demand.
June 25, 2019