It's good to talk, but China and the United States remain locked in a strategic struggle, observers say


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A phone call between Presidents Xi Jinping and Donald Trump may have increased the possibility of a truce in the trade war, but the strategic dispute between Beijing and Washington is far from resolved, according to a councilor of the United States. Chinese government and other observers.

In their talks on Thursday night, Xi told Trump that both sides had to submit a proposal to settle the trade war, while Trump said the two men had "a long and very good conversation" on several issues, including trade and the North. Korea. They also decided to meet on the sidelines of the Group of 20 summit in Buenos Aires, Argentina, at the end of the month.

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Direct talks were the first between the two leaders to be reported since May.

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Trump also offered to host a" style Western "Dinner for Xi on December 1, after the meeting of G20 leaders, an invitation that Beijing had provisionally accepted, said at the Morning of South China. "data-reactid =" 26 "> Trump also proposed organizing a" Western-style "dinner for Xi on December 1, after the G20 leaders' meeting, an invitation that Beijing had tentatively accepted, said in a statement. press people familiar with the subject. Morning of South China.

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "The meal would give more time to the two leaders Bloomberg quoted anonymous sources saying that Trump had also asked his team to start drafting the terms of a trade deal with China, although his economic adviser Larry Kudlow later denied this claim. "Data-reactid =" 27 "> The meal would give the two leaders more time to talk and create a more conducive atmosphere for negotiations, sources said Bloomberg quoted anonymous sources saying Trump had also asked his team to to begin drafting terms for an agreement on trade with China, although economic adviser Larry Kudlow later denied this assertion.

Chinese Ministry of Foreign Affairs spokesman Lu Kang said he was optimistic about the phone call, saying he had been "extremely positive".

"The two leaders have agreed to strengthen economic exchanges," he said, without indicating, however, that they had made progress in resolving the trade dispute.

Despite Beijing's positive message, analysts have been more pragmatic about the results of the leaders' meeting, given the huge differences between the two sides over strategic and ideological issues, as well as growing hostility to regard to China in the United States.

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"The best possible outcome of the Xi-Trump meeting would be a suspension of tariffs imposed on each other, but the United States would maintain its total blockade on China's technological development," said Shi Yinhong, a professor of international relations at Renmin University. and a counselor in Beijing.

"Bilateral tensions on strategic issues such as Taiwan, the South China Sea and the arms race will continue and may intensify," he said. "I'm very careful about the outcome of their meeting."

Shi also said that he thought China had only a limited role to play on the issue of North Korea. Beijing would not risk compromising the improvement of its relations with Pyongyang and had "very few tools to work with," he said.

At the same time, Jake Parker, vice president for China operations at the US-China Business Council, said the presidents' phone call had allowed the two countries to discuss their many disputes – from trade imbalance to China's forced technology transfers – but none of them would be easy to solve.

"They may be too complex to resolve in one meeting," he said. "But the leadership summit could lay the groundwork for the procedure to follow."

Despite the promise offered by the Trump-Xi phone call, the level of tension between the two countries came just hours after its end when the US lodged a complaint against the Chinese technology company Fujian Jinhua Integrated Circuit Co and his Taiwanese partner.

Washington accuses the two companies of stealing trade secrets from US chip maker Micron Technology, but the Chinese Ministry of Commerce opposes the accusations and has asked Washington to "remedy this mistake."

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Lu Xiang, American business specialist at the Chinese Academy of Social Sciences, said that Beijing was preparing for a "worse than the worst" confrontation with the United States, and added that a new escalation would fatal to an already unstable American state. stock market.

It was "hard to know what Trump expected most from China" because of a fragmented administration that had not yet found the right balance between the priorities of various interest groups, a he declared.

"Given his [Trump’s] poor record of credibility of policies over the past year, we had better not keep too much hope, "Lu said.

James Zimmerman, a partner with the Perkins Coie law firm in Beijing and former president of the US Chamber of Commerce in China, questioned Trump's sincerity about a possible trade deal.

"Trump's so-called directive to his staff to draft an agreement is either a hollow gesture or an ostentatious gesture, or both," he said.

"Either he intends to squeeze it into Xi Jinping's throat, or he simply asserts that an agreement is imminent as a political blow to the mid-term elections."

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Zimmerman also said that the announcement of the indictment against the Chinese technology company, which "was more a political coup than anything," would lead not the two countries to solve a "multitude of contentious issues".

"The Trump administration should not miscalculate China 's tolerance for what they perceive as a tactic of intimidation," he said. "The result is that the trust deficit is widening."

Nevertheless, the phone call seemed to improve market sentiment, as shares and yuan / dollar exchange rates rebounded Friday and Friday. This has also fueled speculation that Vice Premier Liu He's visit to the United States, originally scheduled for September but canceled due to the escalating trade dispute, could be back in the cards.

Washington and Beijing have been engaged in a trade war since July, hitting tariffs of up to 25 percent on imports of their respective products. Trump also threatened to extend tariffs to all Chinese imports if the meeting in Argentina did not result in "a good deal".

Tensions have escalated in recent months, with US officials accusing China of interfering in mid-term US elections, cyber espionage and military aggression.

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"We'll see what happens at the G20 and with Liu's talks, but I'm not optimistic that something important will happen," Zimmerman said.

In their May telephone conversation, Xi and Trump decided to resolve their trade disputes, but the talks ended in deadlock and the first tariffs followed a few weeks later.

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