Finance leaders of the G20 nations will meet in Japan, with a report this Sunday likely to address the issue of the escalating trade tension between China and U.S. Key on the agenda is the potential impact of tensions on the world economy, about which the leaders say there should be no protectionism.
Steve Mnuchin the U.S. Treasury Secretary reported that he would meet Yi Gang the People’s Bank of China Governor although their meeting, as he said is not going to be a “negotiating meeting” on matters concerning trade.
An official conversant with the drafting of the communiqué noted that the trade war between the two giant economies has to some extent interfered with other areas of discussions. This has made the drafting of the communiqué to become almost unachievable.
The escalating trade conflict between the U.S and China has hit the financial markets and also it is feared there will be a global recession if it continues.
The G 20 finance ministers together with the central bank governors have been on a two-day meeting in Fukuoka south of Japan which ends on Sunday even as a cloud of darkness engulfs the global economy.
The finance leaders’ main agenda will not be traded, as the Chair of this year’s G20 meetings Japan noted. They will also not focus on mediating the current trade conflict. However, the adverse economic effects of the trade war cannot allow them to avoid the issue.
The state of the trade war has sent a dark cloud over any light that would shine soon. This has prompted Governor Haruhiko Kuroda of Bank of Japan to almost lose hope on the seemingly global economic rebound expected in the second half of this year. The U.S. President Donald Trump put pressure on the G20 financial heads back in 2017 forcing them to replace a phrase that sought to avoid any forms of protectionism with the statement pledging to work “to strengthen the contribution of trade to our economy.”