Tensions over oil and trade conflict will command a summit of the Group of 20 major economies in Japan this weekend, with attention focussed on a meeting between the leaders of the United States and China, entangled in a prolonged trade war.
Xi Jinping and Donald Trump will meet for the first time in seven months for discussing sinking ties between the two largest economies of the world. But prospects of progress look slim, as no side has given ground after discussions broke down in May.
Many G20 members have a piling in the consequence of the summit because the row has interrupted global supply chains, diminished world growth and triggered dovish views on interest rates among some of the central bank of the group.
But some have presented distresses that the trade row might overshadow efforts to gear pressing international issues.
The Sino-US trade clash is “serious”, but it should not “take a multilateral body hostage, claimed an official of French President Emmanuel Macron’s Elysee office.
The US President will reach in the western city of Osaka in Japan in just a week after calling off a revengeful air strike on Iran after it shot down an uncrewed US aircraft. The threat of the Middle East conflict has triggered oil prices globally.
The leaders of Saudi Arabia and Russia, both G-20 members, will also attend the two-day long summit which starts on Friday, ahead of a meeting of oil cartel OPEC on 1st July and 2 to discuss oil supply policy.
Financial markets have revived since the US President and Xi spoke by telephone last week and agreed to meet in Osaka and rescued trade discussions which collapsed in early May after the United States charged China of waiving on its promises.
Both sides have punched tariffs on hundreds of billions of dollars of each other’s imports in the almost year-long trade war, even as they attempted to forge an extensive trade deal.