Abe's G20 eclipsed by US-China trade truce

The G20 summit meeting in Osaka has wrapped up, while US President Donald Trump and Chinese counterpart Xi Jinping have agreed to restart trade talks.

President Donald Trump meets with Chinese President Xi Jinping

US President Donald Trump and Chinese President Xi Jinping's sideline trade talks eclipsed the G20. (AAP)

The G20 summit in Osaka has ended with lofty language from powerful world leaders but was eclipsed by US President Donald Trump, who agreed to restart trade talks with China and extended a surprise invitation for North Korea's leader to meet him at the Korean DMZ.

Despite the focus on Trump, the summit's host, Japanese Prime Minister Shinzo Abe, declared the gathering a success.

"The G20 nations, as the countries that lead the world economy, have a responsibility to squarely face global problems and to come up with solutions through frank dialogue," Abe said in concluding the meeting.

"With this 'Osaka Declaration', we should try to tenaciously find, not the differences, but common ground among us."

In striving for common ground, however, the summit declaration finessed differences and yielded no major new initiatives.

German Chancellor Angela Merkel nevertheless welcomed the fact the leaders managed to hold the line on the issue of climate change, with 19 countries committing themselves to the Paris climate accord.

Only the US dissented, reiterating Trump's decision to withdraw from the Paris Agreement "because it disadvantages American workers and taxpayers."

Merkel told reporters "this process cannot be turned around." She said some leaders in Osaka indicated they were willing to up commitments to curb greenhouse gases by aiming for "net zero" emissions by 2050.

Merkel also lauded the deal between the EU and the South American bloc MERCOSUR - also struck on the G20 sidelines - to create the world's largest free trade zone after 20 years of negotiations.

The G20 leaders have long sought to present a united front in promoting open markets and calling for smart policies to fend off threats to global economic growth. But the schisms over such issues as protectionism and migration are straining efforts to forge the usual consensus on a broad array of policy approaches and geopolitical issues.

The summit declaration did not take aim at protectionism but included a call for free, fair, non-discriminatory and open markets.

Much of the spotlight of the two-day meeting focused on Trump.

Using Twitter, he raised a stir by inviting North Korea's Kim Jong Un to shake hands during a visit the he plans to make to the heavily armed DMZ between the Koreas on Sunday. "If Chairman Kim of North Korea sees this, I would meet him at the Border/DMZ just to shake his hand and say Hello(?)!" he tweeted.

North Korea's First Vice Foreign Minister Choe Son Hui responded by saying it was a "very interesting suggestion".

Trump has at times found himself at odds with other leaders in such international events. China, meanwhile, has sought support for defending global trade agreements against Trump's "America First" stance.

The two sides have levied billions of dollars' worth of tariffs on each other's products, and talks on resolving the longstanding issues had stalled in May.

Afterward, Trump said the talks were "back on track." He said he had decided to hold off on imposing more tariffs on Chinese exports, while China planned to buy more American agricultural products.

But it's unclear if they have overcome the obstacles that halted earlier talks.

"I think that realistically that the two sides, there are substantive issues that remain to be resolved - subsidies, state owned enterprise, reform, industrial policy in China - that go to the core of China's economic system," Jacob Parker, vice president of US-China Business Council China Operations, said.

While he upstaged host Abe, Trump did make a point of attending meetings like one on Saturday on women's empowerment, where daughter Ivanka spoke.


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4 min read
Published 29 June 2019 8:58pm
Source: AAP


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