US Relationship With China Good, but Testy

Donald Trump

Prodded by hawks in Washington to take a "whole of government" approach toward China, Trump may make it harder for Xi to compromise at the negotiating table.

The statement followed in the wake of comments made Monday by US President Donald Trump that he would slap tariffs on an additional $300bn worth of Chinese goods if a deal to resolve trade tensions isn't reached when G20 leaders gather in Osaka, Japan later this month.

"Right now, China is paying us billions and billions of dollars".

The foreign ministry spokesperson hinted at further retaliation from China if Trump insists on more tariffs.

Trump and Japan's Prime Minister Shinzo Abe leave the Akasaka Palace Monday, May 27, 2019, following their afternoon meeting at this Tokyo palace. It's not even confirmed if Xi is to attend the G20 Summit at all. "We have nothing to announce at this time regarding specific bilateral meetings", White House National Security Council spokesman Garrett Marquis. "They ate us alive", Trump said.

Trump has repeatedly claimed that tariffs are a key tool of negotiations, pointing to his most recent trade scuffle with Mexico. "If the United States only wants to escalate trade frictions, we will resolutely respond and fight to the end", he said.

The International Monetary Fund (IMF) also recently concluded that USA tariffs have had a "significant" impact on China, causing the IMF to lower its forecast for China's future growth.

"For China it's all about protocol for Xi and making sure he is respected", said an Asian diplomat. China's foreign ministry - which usually refuses to provide details of meetings until the very last minute - declined Tuesday to say whether the meeting would take place.

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"Trump's strength is in the middle of the country", said Geltrude. The president also said China wants to come to a trade agreement with the U.S. Beijing responded by raising tariffs on $60 billion of United States exports and escalating its anti-American propaganda.

Last month, the US accused China of reneging on provisions of a tentative trade deal, bringing talks to a halt.

"I think what people have to learn to do, judge this administration by results".

"No, I have no deadline", Trump said when asked if he had a deadline for China to make progress in trade talks before deciding to impose additional tariffs.

"You don't promise to marry someone and then back out at the last minute", the source, who meets regularly with senior officials, told Reuters. If Xi caves to Trump's threats, he risks looking weak at home.

No talks are planned in Beijing or Washington before the Osaka event, U.S. Treasury Secretary Steven Mnuchin told reporters over the weekend.

Investors worry China will retaliate by putting U.S. companies on a blacklist or banning exports to the USA of rare earth metals, which are used in products such as memory chips, rechargeable batteries and mobile phones.

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