United States President Donald Trump has done a fine job lowering expectations for his April 6 to 7 summit with China’s President Xi Jinping, tweeting that the meeting “with China will be a very difficult one in that we can no longer have massive trade deficits and job losses”.
Investors might wish to take that downbeat assessment with a large pinch of salt.
In November Xi said he would work with the newly-elected Trump, just as he had with former President Barack Obama, “to uphold the principles of non-conflict, non-confrontation, mutual respect, and win-win cooperation,” sentiments echoed almost verbatim by US Secretary of State Rex Tillerson in Beijing on March 19.
The bottom line must surely be that the world’s two largest national economies have a vested interest in finding common ground. Both sides are ultimately rational actors.
As China’s Foreign Ministry spokesman Lu Kang said on Friday of the China-US relationship “the market dictates that interests between our two countries are structured so that you will always have me and I will always have you. Both sides should work together to make the cake of mutual interest bigger and not simply seek fairer distribution”.
China’s perspective is that China-US trade relations have brought visible and tangible benefits to both nations and, as Zheng Zeguang, a Chinese foreign vice-minister, said on Friday: “Chinese companies’ investment in the US is growing rapidly and creating job opportunities there, which can help address the trade deficit.” …
Read more : SCMP, 04.04.2017