The second development was widespread support for the World Trade Organization against US depredations. Originally proposed by Indonesian President Joko Widodo, the proposals were backed by Australia and others. It is a small step towards recognition and acknowledgement of the damage being inflicted on world trade. In particular, it may lead to demolishing the US roadblock that has stalled the appointment of appellate judges before their terms expire on Dec 10. Support for the operation of WTO echoes China’s robust support for the global trading system that Xi first expressed at Davos in 2017.
SINGAPORE (July 8): Three important developments came out of the G20 meeting held at end-June in Osaka. The first was an extended ceasefire in the US-China tariff war. This was hailed as a victory for the US, but closer examination suggests the Chinese gave away little of importance. It is a classic example of the Chinese strategy of making something out of nothing. Expansion of US meat imports would have happened in any case, given the ongoing culling of Chinese pigs, owing to the breakout of African swine fever. This G20 outcome had the benefit of making a necessity look like a concession.
Presidents Donald Trump and Xi Jinping merely agreed to no further escalation in hostilities and, even then, only on a temporary basis. There has been no scaling back and no clear path to resolve the dispute. The US market reaction reflects hope rather than reality.
