Trump defends his China strategy, Beijing says ‘not afraid’ of trade war

Trump presses China to reverse stance on structural reform if it wants trade deal

"We have nothing to announce at this time regarding specific bilateral meetings", White House National Security Council spokesman Garrett Marquis.

"They have to start representing the United States, not just the companies that are members of the U.S. Chamber of Commerce", he said.

Yesterday Trump said the further tariffs would go into effect immediately if Xi does not meet with him. "If the USA insists on escalating trade frictions, we will respond firmly and keep it company to the end".

But U.S. officials have made it their mission to persuade other governments to avoid working with Huawei, warning that Washington might not share sensitive information with allies if they are using Huawei equipment and networks that the Washington suspects could be compromised. Trump often attends important talks with little advance work and makes policy on the fly.

China's economy is reeling from President Trump's strategic tariffs, and Beijing is getting desperate.

"For China it's all about protocol for Xi and making sure he is respected", said an Asian diplomat.

Terry Branstad, the U.S. ambassador to China, was scheduled to meet with U.S. Vice President Mike Pence in Washington on Tuesday amid the ongoing negotiations.

Eswar Prasad, a trade professor at Cornell University and a former head of the China department at the International Monetary Fund, said expectations from any talks were low.

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"He can do whatever he wants", Trump said in the interview.

Trump maintained that he had a "great relationship" with Xi despite the rise in trade tensions between their two countries.

Trump has imposed 25 per cent tariffs on $250 billion worth of Chinese exports and is preparing to expand them to cover another $300 billion.

Scott said that while the USA had significant issues with China that need to be addressed, such as currency manipulation, he said tariffs against Mexico bristled Republicans" long-standing anti-tariff sentiments and crossed a "red line'.

Those collapsed last month after Trump accused China of reneging on parts of the agreement, leading to an increase in tariffs and stronger actions against Huawei.

"I have a feeling that we're going to make a deal with China, because I really don't believe that China wants to continue the problem that they really caused themselves because we had a deal done", he explained. Eventually, after several days of uncertainty, Donald Trump accepted the arrangement. We want to get along with China, but we had no choice. "Because China ate the United States alive, economically, and it's a shame", he said.

The strains between Washington and Beijing are expected to make it hard for diplomats to agree on the language of the G20 statement issued at the end of the summit.

Tellingly, Xi refuses to acknowledge his country's economic weakness, insisting that "China's economy bears the supporting conditions for stable, healthy, and sustainable growth".


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