'China and US will lose by fighting': Xi Jinping tells Trump

Last Updated: Jun 19 2019 19:52
Reading time: 1 min, 26 secs

On Tuesday, United States President Donald Trump and China’s Xi Jinping said that they plan to meet next week at the Group of 20 summit in Japan, raising hopes for a truce in an increasingly damaging trade war between the world’s top two economies.

Trump said the leaders had a “good” conversation, while Xi said the countries have more to gain by cooperating than by engaging in a protracted battle.

The comments set a more upbeat tone for the talks after worsening tensions created fears over whether the two economic powers would be able to resolve their differences after exchanging steep tariffs on hundreds of billions in exports.

“Had a very good telephone conversation with President Xi of China. We will be having an extended meeting next week at the G-20 in Japan,” Trump said on Twitter.

“Our respective teams will begin talks prior to our meeting.”

Xi too was relatively upbeat.

“In recent times, China-US relations have encountered some difficulties, which is not in the interest of either side. China and the US will both gain by cooperating, and lose by fighting,” Xi told Trump, according to a readout by Chinese state broadcaster CCTV.

The White House readout of the call said the leaders “discussed the importance of levelling the playing field for US farmers, workers, and businesses through a fair and reciprocal economic relationship.”

The White House repeated that the focus of the talks will be to address “structural barriers to trade with China and achieving meaningful reforms that are enforceable and verifiable.”

Trump economic adviser Larry Kudlow warned that there are “no guarantees” of any resolution in Osaka.

“Our position continues to be (that) we want structural changes,” Kudlow told reporters.

“They’ll have a good conversation. The fact that they’re meeting is a good thing.”