20th June 2019
A compromise between the United States and China would help the economy.
Investors are keeping a close eye on this week's G20 summit, which is expected to bring together US President Donald Trump and his Chinese counterpart, President Xi Jinping, in a bilateral meeting. The two presidents are at the end of the trade war, but China's Vice Minister of Commerce Wang Shouwen said the two sides should swiftly compromise.
Financial markets have been disappointed by the decision to revert to the previously agreed deal and are now hoping for a more positive outcome. An agreement between the two countries would put an end to the trade war that has lasted for over a year and would benefit the world economy.
Without giving further details, Wang, who is part of the trade negotiation team with the United States, described China's principles as clear and called on both sides to respect each other, stressing that "Mutual respect means that each party must respect the sovereignty of the other ". Equality and mutual benefits must also be key principles throughout the meeting, which means that consultations must be held on an equal footing; the agreement to be reached should be of benefit to both parties.
At a press conference on the summit, Wang stated that there must be a compromise, with the two sides meeting halfway to reach an agreement. Wang did not answer questions about the preparations and announced that he was planning on convincing Trump's team. He highlighted the benefits the economy would gain, leading Chen Yulu, vice governor of the Chinese central bank, to warn about the current global economic and financial risks that are increasing rapidly.
The trade war pushed the United States to raise tariffs by 25% on all Chinese imports. China has also taken action and said it would not be under pressure.