'Good possibility' of trade deal with China in G20: Trump advisor


-China trade war that has roiled global markets.

Diplomats from the Group of 20 countries were haggling hard over a final summit statement Friday, with deep divisions over what language to use on the Paris climate accord and the World Trade Organization, according to two European officials involved in the discussions.

U.S. President Donald Trump and Chinese President Xi Jinping could reach a new trade deal between the world's two largest economies when they meet in Argentina this weekend, White House economic adviser Larry Kudlow said Tuesday.

Facing the prospect of a no-statement summit, European delegations were trying to create a common front and may come out with their own separate declaration if they can't get the USA or others on board.

Trump has slapped punishing tariffs on more than $250 billion in Chinese imports so far this year, demanding that Beijing end allegedly unfair trade practices and reverse industrial policies criticized by other major economies.

The moves prompted retaliatory duties on US goods that have hit certain American businesses, particularly in the agriculture industry.

Lighthizer said "As the President has repeatedly noted, China's aggressive, State-directed industrial policies are causing severe harm to USA workers and manufacturers, "We are continuing to raise these issues with China".

Trump's remarks came as he prepared to depart for the summit.

The U.S. comes into the G20 strong, while China has been weakened, Kudlow communicated.

Kudlow also said the dinner with Xi was one of the last events on Trump's itinerary before his return to Washington, increasing the odds that any briefing about the results of the dinner would take place after the USA president's departure from Argentina. Argentina's presidency voiced optimism consensus would be reached on a draft.

European Council President Donald Tusk urged G-20 leaders to discuss "trade wars, the tragic situation in Syria and Yemen and Russian aggression in Ukraine".

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Russian Federation and Ukraine have traded blame over the weekend seizure of Ukrainian ships and their crew - which Trump cited in cancelling a much-awaited meeting with Putin at the G-20.

Saudi Arabia has denied that Crown Prince Mohammed bin Salman played a role, but some leaders may be cool toward him to avoid seeming to legitimize a man who US intelligence agencies concluded ordered the killing.

Asked about the European concerns, a USA official said progress was being made on the joint statement and the White House was "optimistic" about the document as a whole.

Saudi Arabia's de facto ruler arrived under swirling controversy over the murder of Saudi journalist Jamal Khashoggi in the Saudi consulate in Istanbul on October 2.

He said the Kremlin expects that the talks will touch on nuclear arms control, noting that it's particularly important to discuss them in view of the US intention to withdraw from the Intermediate-Range Nuclear Forces Treaty.

Uncertainty prevailed about how Trump, known for his unpredictability, would behave at what was shaping up as one of the group's most consequential summits. Trump's trade war with China has at times roiled stock markets this year amid concerns about broader damage to the US economy.

Before heading for Buenos Aires on Thursday, Trump said he was open to a trade deal with China, but added, "I don't know that I want to do it".

But many analysts are predicting there will be no breakthrough at Saturday's meeting.

In another bilateral meeting on Friday, French President Emmanuel Macron will discuss the Renault-Nissan alliance's future with Japanese Prime minister Shinzo Abe. China was the largest U.S. trade partner through September, according to the U.S. Census Bureau.

Markets are hoping a deal can be reached before the end of the year, when USA duty rates are due to increase significantly.

"The last summits have been somewhat disappointing and marked by contention, particularly over trade-related issues".