What will China offer the United States to break the trade war deadlock?
- Beijing needs economic stability offshore to be able to tackle problems at home, source says
Chinese President Xi Jinping is expected to promise greater market access and fewer subsidies to state firms when he meets his US counterpart this weekend, with Beijing seeing external stability as key to coping with economic headwinds at home, sources said.
Xi and US President Donald Trump are expected to meet on the sidelines of the G20 summit in Buenos Aires, Argentina, this week in an effort to find a way out of months of deadlock on trade.
As well as offering better protection for intellectual property, Xi is likely to address China’s imbalance in trade with the US. That could include the easiest commitment China could make – offering to further open its markets, according to a source familiar with government discussions.
“It is an issue with the least pressure for the government,” the source said, adding that it was an “overdue payment”.
White House economic adviser Larry Kudlow has suggested there is “a good possibility” of a deal if China offers some new ideas and attitudes.