MNI: Politicization of Issues May Foil Xi-Trump G20 Summit

--Former Official Warns Of Issuance Other Than Trade Overshadowing Meet

By Wanxia Lin

     BEIJING (MNI) - Fundamental disagreements over issues other than trade may

prevent an upcoming presidential summit between the U.S. and China from

resolving bilateral trade tensions, a former senior Chinese negotiator warned

Sunday, speaking to a Beijing forum

     If the two sides squabble over "underlying problems" such as technological

competition and differences in economic systems, the trade frictions will be

further mired into political conflicts, said Long Yongtu, a former vice minister

of Foreign Trade and Economic Cooperation.

     "Any trade talk could fail if they turn in a political direction," Long

emphasized, insisting that trade negotiations should stick to trade issues.

     "There is hope as long as the two countries come back to the negotiation

table," said Long, now the chairman of Center For China & Globalization, a

government-backed think tank. One can be "cautiously optimistic" about a trade

solution given how the two economies are intertwined, he said.

     --LOW EXPECATION

     Long's low expectation for the Xi-Trump summit are shared by Charlene

Barshefsky, a former U.S. trade representative and also attending the forum.  

     "The best we could hope for realistically would be some sort of resumption

of more serious negotiations, perhaps the announcement of one or two small

things that suggests progress has already been made," Barshefsky said.

     At a minimum, the two governments can agree to tone down the heated

rhetoric and create a feeling of greater stability. The worst outcome is that

the two sides walk away accusing each other with nothing accomplished,

Barshefsky said.

     --SUPPORT WTO

     Long called for China to support the authority of the WTO as a global trade

regime and endorse its internal reform. China should advocate for new WTO rules

that integrate regional trade pacts and for e-commerce and the digital economy,

Long said. 

     The U.S. must change its irresponsible manner toward the WTO, so that the

arbitration system can be respected and restored, Long said.

     As the global economic centre shifts to the Asia Pacific region, the

current world trade order is also altered by growing pan-regional trade pacts,

such as the Comprehensive and Progressive Agreement for Trans-Pacific

Partnership (CPTPP) and Regional Comprehensive Economic Partnership (RCEP), Long

said.

     China should consider joining CPTPP negotiation and accelerate the

formation of RCEP which covers 16 Asian-Pacific states. RCEP is expected to be

launched next year, as 80% of the agreements have been completed, Long said.

--MNI Beijing Bureau; +86 (10) 8532-5998; email: wanxia.lin@marketnews.com

--MNI Beijing Bureau; +86 10 8532 5998; email: william.bi@mni-news.com

--MNI London Bureau; tel: +44 203-586-2225; email: les.commons@marketnews.com

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