World 125 27.06.2019 16:21:38

G20 summit: Truce to Trump-Xi trade war

G20 summit: Truce to Trump-Xi trade war

Leaders from the Group of 20 nations (G20) will meet in Osaka from Friday in what is likely to be its most important summit since the global financial crisis. BBC News reported.

When the G20 met in Washington one month after the Lehman Brothers crash in 2008, they were focused on a mammoth task: how to piece the world economy back together and avoid a future crisis.

A decade later the G20 nations face another huge challenge in resolving a US-China trade war that has rattled businesses around the world and cast a shadow over the global economy.

That's why the meeting between US President Donald Trump and Chinese President Xi Jinping on Saturday will be so closely watched.

While that would provide markets with some relief, it won't mean the trade war is over.

In the months leading up to the G20 meeting in Japan, the trade clash 
between the world's two largest economies has escalated.

The US tightened restrictions on Chinese telecom champion Huawei and four other Chinese tech firms by putting them on a trade "blacklist".

Beijing responded angrily with threats of its own trade ban, and in recent weeks has increased scrutiny on American firms operating in China, including FedEx.

But with China's economy slowing, and Mr. Trump heading into an election year, neither side can afford to let the trade war go on for much longer.

If a truce is announced, there will be relief from G20 nations too.