China trade war headlines G20 finance ministers meeting

China trade war headlines G20 finance ministers meeting

China trade war headlines G20 finance ministers meeting

"The principal threat stems from continuing trade tensions", said Lagarde, adding that the International Monetary Fund estimates the tariffs could reduce the level of global GDP by 0.5 percent in 2020, or about $455 billion.

The initiative was debated on Thursday during a G20 Ministerial Symposium in the Japanese city of Fukuoka, with the world's leading industrialized countries coming out in favour of setting up a new tax model that is adapted to the digital economy, reports Efe news.

There we expect the United States and China to find a way to get to an agreement. "Not the flawless outcome but a good outcome", said EU Economic and Monetary Affairs Commissioner Pierre Moscovici, who admitted that reaching agreement was "not an easy task".

"So it's high time that we put an end to those tensions and we should avoid trade wars which would have real deep negative impact and long-term impact on global growth", he said.

"If anything I would say as a result of tariffs on China there are a lot of companies that are moving that production to other countries that I think will be a big boom for those economies, there will be winners and losers, there are clearly countries that will be big beneficiaries on movement" of production, he said.

He and other members of President Donald Trump's administration contend that the ripple effects of the billions of dollars in tariffs imposed by Washington on Chinese exports over the past year are creating new business opportunities for other businesses in the USA and other countries.

U.S. Treasury Secretary Steven Mnuchin said on Sunday that President Donald Trump might ease U.S. restrictions on Huawei if there was progress in the trade row with China - but absent a deal, Washington would maintain tariffs to cut its deficit. He said the United States had "significant concerns" and stated "I don't like them".

On Sunday, U.S. Treasury Secretary Steven Mnuchin met with China's central bank Gov. Yi Gang.

Trump has already imposed 25 percent tariffs on 200 billion USA dollars worth of Chinese goods, but is now weighing whether to impose new tariffs on other Chinese products worth 325 billion dollars.

But Moscovici was more positive, saying he was "rather optimistic" the G20 would clinch agreement on a new set of global tax rules by 2020. "But there's no conclusion yet" on the language of trade, the official told reporters.

In a G-20 group meeting later in the day, the two were seen exchanging friendly remarks, but there were no fresh signs Beijing is ready to compromise in the dispute over trade and technology.

Their official agenda on Saturday was focused on longer-term, more technical issues such as improving standards for corporate governance, policing cyber-currencies and reforming tax systems to ensure they are fair for both traditional and new, online-based industries.

"Central banks are heroes", OECD secretary general Angel Gurria told Bloomberg Television in an interview during the meetings.

Solving the issue will require wholesale changes to the way society is organized, added Gurria.

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