It would be hard to overstate what’s at stake as
Presidents Donald Trump and Xi Jinping meet
Saturday at a Group of 20 summit in Osaka,
Japan, to seek a truce in their trade war and
revive negotiations between the world’s two
largest economies.
The Trump administration has accused Beijing of
deploying predatory tactics — including stealing
technology and forcing foreign companies to
hand over trade secrets — in an illicit drive to
surpass America’s technological supremacy.
Trump has already imposed 25% tariffs on $250
billion and is threatening to tax an additional
$300 billion’ worth, thereby extending his import
taxes to just about everything China ships to the
United States. China has retaliated by imposing
tariffs on $110 billion in U.S. imports.
Negotiations to resolve the dispute broke off last
month after the administration accused Beijing
of reneging on commitments it had previously
made. Trump and Xi are expected to agree to
some kind of cease-fire in Osaka. This would buy
time for their negotiating teams to work toward a
meaningful long-term agreement. During a truce,
it is assumed, Trump would hold off on taxing the
additional $300 billion in Chinese imports.
But reaching a substantive agreement could
prove enormously difficult. The differences
between America’s mostly free-market
capitalist economy and China’s state-driven
economic system are vast. Here’s a look at what
each side wants:
CHINA
Chinese officials have said they want to revive
negotiations with the Trump administration.
Yet they have given no indication that Xi plans