On Monday, the Republican president said he would raise tariffs on Chinese imports further if he can not make progress in trade talks with Chinese President Xi Jinping at the Group of 20 summit later this month.
"From early May, China began to think that no deal might be better than a bad deal, and right now China and the U.S. have fundamentally contradictory attitudes as to what would be a good deal", Shi Yinhong, an worldwide relations scholar and State Council adviser said, according to The South China Morning Post. What we've done in the last two and a half years, we've picked up Dollars 14 trillion in net worth of the United States.
President Trump, meanwhile, said on Wednesday. that he has a feeling there will be a trade deal with Beijing.
Those collapsed last month after Trump accused China of reneging on parts of the agreement, leading to an increase in tariffs and stronger actions against Huawei.
Speaking to reporters on the sidelines of a meeting of G20 finance ministers and central bank chiefs, Washington's top finance official warned that Washington would press on with tariffs if a deal could not be reached.
While the president has said on multiple occasions that the two leaders are scheduled to meet during the summit, the Chinese regime has refused to confirm the engagement. "We think we'll meet with him at the G20".
President Trump vowed Tuesday that, during his presidency, he will prevent China from ripping off the United States.
Host country Japan and European Union countries are working with the United States on new World Trade Organisation rules aimed at reining in "non market-oriented policies" including industrial subsidies, rules clearly aimed at China.
The arguments for Xi to meet Trump mostly revolve around the need to prevent greater economic damage.
He said China was "getting absolutely decimated" by companies relocating to avoid the tariffs.
Xi and Trump met a year ago in Buenos Aires and broke a prior impasse in trade talks.
Later addressing a renewable energy meeting in Iowa, Trump said that the "colossal trade deficits" financed the build up of China's infrastructure, military and technology at the expense of the American taxpayer.
He said there's a high possibility that the two leaders will reach an agreement there. but he emphasized that China won't take further steps in the negotiations unless the USA shows sincerity.
The International Monetary Fund (IMF) also recently concluded that US tariffs have had a "significant" impact on China, causing the IMF to lower its forecast for China's future growth.
Investors worry China will retaliate by putting United States companies on a blacklist or banning exports to the USA of rare earth metals, which are used in products such as memory chips, rechargeable batteries and mobile phones.