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G-20 Summit Holds A 50-50 Chance For A U.S.-China Trade Deal

The investors all around the world would be closely monitoring the G-20 Summit to be held in Japan in June as Xi Jinping the Chinese President and Donald Trump the US President would be meeting the rising trade war. Max Baucus former US ambassador to China said that the chances of getting a deal finalized are 50-50. He said that as of now, President Donald Trump is not clear about relations with China, one day he says things are fine and the next he accuses China so it is tough to say anything right now. Earlier when the summit was held in Argentina in December 2018, both the leaders had agreed upon a trade ceasefire of 90 day which had put their war of tariffs on hold several months until the last week. The previous Friday, US doubled the tariffs on Chinese goods worth $200 billion in middle of the ongoing negotiations which prompted China to respond with its own tariffs rules.

Beijing had announced on Monday that 5,000 US products saw the duties increased to 25% from the month of June. This approach has placed both the countries in a tough position as it is difficult to go back from here now. Baucus said that the upcoming 2020 US presidential election would also play a role in the trade negotiations.

He added that he thinks that it is possible that President Trump would finalize a deal before the year 2020. Baucus said that this will particularly happen if the market of stock goes south as he prefers a solid market of stock. He also added that President Trump has been caught up in a box as he do not wishes to look weak.  If Trump looks weak, he would be criticized by the presidential nominee and democrats, he said, adding that particularly the nature of the war of trade had made a solution very difficult.