For the better part of a year, the United States and China have been engaged in a tit-for-tat trade war. It's time to stop. The meeting on Saturday between President Donald Trump and Chinese President Xi Jinping at the G20 Summit in Buenos Ares is the place to make that happen.
To his credit, President Trump is taking important steps to minimize security concerns arising from certain Chinese investment and technology acquisition practices. Now, he must find a way forward that allows American businesses to participate in the world's fastest-growing economy with as much fairness, openness and transparency as possible.
The tariff actions have put pressure on a Chinese economy that was already under some stress. But tariffs have also served as a tax on American consumers and businesses, and reciprocal tariffs from China are hurting American farmers, ranchers and manufacturers. Saturday's meeting is the opportunity for the two presidents to abandon these damaging tariffs in favor of a framework for fair trade and investment.
A truly successful meeting between President Trump and President Xi would result in three outcomes.
1. China would announce near-term moves that would address long-standing areas of concern, such as intellectual property theft and forced technology transfer, or the practice of requiring that foreign companies share their technology to do business in China. For example, China could issue a public statement recognizing that it will take immediate actions to quickly resolve a number of ongoing cases involving IP theft and discrimination affecting US companies. It could also establish permanent solutions that protect US intellectual property against theft, forced transfer and infringement. These actions could stave off January's planned tariff increase.
2. Presidents Trump and Xi should announce that senior officials will immediately open negotiations to develop a comprehensive, enduring commercial agreement. In our view, these negotiations should last less than six months, and the two sides should aim to eliminate all tariffs within that timeframe. China must also commit to expanding market access for American companies.
To advance fair competition in China and around the world, China must also curb overcapacity in industries like steel, solar and wind, eliminate subsidies and remove restrictions on digital trade. These issues limit the competitiveness of US businesses in China while further distorting global markets, and we're long overdue for change.
3. Both nations should commit to working jointly to preserve the rules-based architecture that has powered China's economic rise — from a developing economy to the world's second-largest economy. China will play a key role in the future of global trading. However, China must recognize that the economic model it champions significantly diverges from the transparent, fair, market-oriented global norms that its leaders stated it would adopt upon joining the World Trade Organization in 2001.
The United States is not alone in its view that China isn't playing fair. Our global allies agree that China undermines the fragile, rules-based trading architecture and creates global economic distortions through its commercial policies and practices. China should move to adopt long-promised, market-based reforms and re-commit to the promises it made upon joining the WTO in 2001.
The outcomes we are seeking are tall orders, and we are not naïve in believing that a single meeting at the G20 will solve the complex challenges facing China and the United States. But it's the right time and place to start.
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