US President Donald Trump and Chinese President Xi Jinping agreed to dial down an escalating trade war at a high-stakes meeting on Saturday, following a summit of leaders of the world's largest economies that called for overhauling global trade rules.

Trump and Xi, accompanied by their aides, met for dinner in the Argentine capital, Buenos Aires, for trade talks that were being widely watched by financial markets concerned that escalation of a trade war between the world's two largest economies could damage global growth.

Read more: G20: What is it and how does it work?

"The relationship is very special — the relationship that I have with President Xi — and I think that is going to be a very primary reason why we will probably end up getting something that will be good for China and the United States," Trump said at the start of the dinner.

Xi told Trump, "Only with cooperation between us can we serve the interest of both peace and prosperity."

Trade war ceasefire

After the meeting, Chinese Foreign Minister Wang Yi said the two sides "have come to an agreement on stopping the imposition of additional tariffs," which Trump had threatened to impose if talks did not advance.

"The principal agreement has effectively prevented further expansion of economic friction between the two countries and has opened up new space for win-win cooperation," Wang said.

The White House issued a simultaneous statement saying that the two sides had agreed to extend trade negotiations for 90 days, during which no new tariffs would be imposed on Chinese goods.

"Both parties agree that they will endeavor to have this transaction completed within the next 90 days. If at the end of this period of time, the parties are unable to reach an agreement, the 10 percent tariffs will be raised to 25 percent."

The ceasefire is likely to soothe investor angst over an immediate escalation in the trade war.

In an apparent victory for the Trump administration, the White House said, "China will agree to purchase a not-yet-agreed-upon, but very substantial, amount of agricultural, energy, industrial, and other product from the United States to reduce the trade imbalance between our two countries."

The leaders also "agreed to immediately begin negotiations on structural changes with respect to forced technology transfer, intellectual property protection, non-tariff barriers, cyber intrusions and cyber theft, services and agriculture," the White House said.

Washington and Beijing have imposed hundreds of billions of dollars in tariffs on each others' goods in recent months. Trump had threatened to increase tariffs on $200 billion (€176 billion) of Chinese goods to 25 percent in January, from 10 percent now. He has also said the United States may add tariffs on another $267 billion of imports if talks break down.

Revamping the WTO

Earlier Saturday, the Group of 20 industrialized nations, which account for two-thirds of the global population and 85 percent of the global economy, called for reforming the World Trade Organization (WTO) in a final communique reached after two days of talks.

"We recognize the contribution that the multilateral trading system has made," the statement read. "The system is currently falling short of its objectives and there is room for improvement. We, therefore, support the necessary reform of the WTO to improve its functioning. We will review progress at our next Summit" to be held in Japan next year."

The non-binding agreement notably omitted the word "protectionism" under resistance from the United States, which under Trump has pursued an "America First" policy.

Trump and Co. at the G20: Friends and Foes US and Saudi Arabia: Would I lie to you? For the Saudi Crown Prince, the G20 will offer little relief. Human Rights Watch has filed complaints against Mohammed bin Salman for the "likely complicity" in the murder of journalist Jamal Khashoggi, among other crimes. In fact, only US President Donald Trump has stuck by the Prince. He doubts bin Salman's guilt.

Trump and Co. at the G20: Friends and Foes Saudi Arabia and Turkey: We have to, somehow The murder of Khashoggi in Turkey has damaged ties between Salman and Turkish President Recep Tayyip Erdogan. Turkey wants to investigate the murder, which the Saudis don't. Turkish support for Qatar has also hurt the relationship. But Erdogan is dependent on Saudi investments. These two may hold private talks during the summit.

Trump and Co. at the G20: Friends and Foes US and Turkey: It's complicated One can no longer call these two friends. Too many points of contention have disrupted the relationship: the nearly two-year detention of US Pastor Andrew Brunson, the fate of exiled cleric Fethullah Gulen, who lives in the US, and now the murder of Khashoggi, with Trump actively ignoring Turkey's point of view on the crime.

Trump and Co. at the G20: Friends and Foes US and China: In the middle of a trade war The two biggest economies in the world have been handing each other tariffs and threats for months. Trump has threatened even more tariffs ahead of the G20. The US has accused China, amongst others, of stealing intellectual property. One of the most highly-anticipated events in Argentina is a meeting between Trump and Xi Jinping. Will the two find a solution? No one knows.

Trump and Co. at the G20: Friends and Foes US and Russia: Growing relationship in crisis They have had better times, Trump and his Russian counterpart Vladimir Putin. Even if Trump is trying to have a better relationship, the honeymoon is over. The Ukraine crisis, the war in Syria and accusations of Russian meddling in US elections has seriously damaged ties. Trump canceled a planned one-on-one meeting with Putin at the G20 over recent confrontations with Ukraine.

Trump and Co. at the G20: Friends and Foes France and Canada: Natural Bromance After their first meeting it was clear, a new "bromance" was blossoming between French President Emmanuel Macron and Canadian Prime Minister Justin Trudeau. The pair always make an effort to put their good relationship on show, and emphasize common ground such as the CETA free trade agreement. There is sure to be a hug or two at the G20.

Trump and Co. at the G20: Friends and Foes France and Germany: United against the nationalists At a recent speech in Germany, President Macron warned that the world is threatening to slide into "nationalism without hindsight and fanaticism without values." For him, a united Europe is the answer to "the world's divisions," - and with that, Chancellor Merkel is on his side. The two are always looking for ways to demonstrate solidarity, and want to make policies for a united Europe.

Trump and Co. at the G20: Friends and Foes EU and Japan: European-Japanese friendship Over the summer, Japanese Prime Minister Shinzo Abe, EU Commission President Jean-Claude Juncker and EU Council President Donald Tusk signed the largest trade pact the EU has ever seen. The free trade agreement showcase global cooperation in the face of the protectionism championed by US President Trump. In Argetina, the EU and Japan are likely to stick together. Author: Rahel Klein



European states have joined US-led calls to reform of the WTO, but are worried that a trade war between Washington and Beijing could hit the global economy. Trump's hardball trade policies have also targeted the EU and other US allies.

"Everyone agrees that the WTO should be reformed," German Chancellor Angela Merkel said. "This is an important agreement.

"We all realize that we are indirectly influenced by the fact that China-US economic relations are not running as smoothly as a world order needs," Merkel added.

Read more: China's economy not opening up despite Beijing's assurances

The International Monetary Fund (IMF) chief warned leaders at the G20 of economic upheaval if Washington and Beijing continued to escalate a trade war.

"The choice is clear," Christine Lagarde said. "There is an urgent need to de-escalate trade tensions, reverse recent tariff increases, and modernize the rules-based multilateral trade system."

The United States argues the WTO has failed to force China to open up its economy as anticipated when Beijing joined the trade body in 2001. Washington also accuses China of stealing trade secrets and forcing American firms to hand over technology in exchange for access to the Chinese market, which is dominated by state-tied firms. China accuses the Trump administration of pursuing protectionist policies and has criticized US threats.

Read more: China's road from copycat to innovator

Peaceful protests hit G20 in Argentina 'If Merkel comes, I go' That's what the black posters say as they call for a national protest of rejection against the G20 and the International Monetary Fund (IMF, in Spanish FMI). Angela Merkel arrived late after technical issues forced her to switch planes. She joined the leaders of other industrialized nations such as China, Russia, and the US, at an annual summit on world trade that also draws counterprotesters.

Peaceful protests hit G20 in Argentina G20 comes to South America Argentina is the first South American nation to host the G20 summit, and national officials said they would not tolerate violence or disruptions. Last year's summit in Hamburg featured violent and destructive protests as police struggled to contain militant anti-capitalist demonstrators. Some 22,000 Argentine police were standing at the ready in case the weekend protests escalated.

Peaceful protests hit G20 in Argentina Police at the ready Police, coast guard and border patrol officers roped off a 12-square-kilometer (5-square-mile) area near the Buenos Aires convention center, where the summit is taking place. Much of the capital was placed on lockdown, with public transport suspended. Argentine politicians recommended locals leave town ahead of expected protests by labor unions, rights groups and left-leaning activists.

Peaceful protests hit G20 in Argentina International protesters Left-wing activists from France, Germany, Italy and other countries came to Buenos Aires to protest what they see as free-trade practices that are detrimental to individuals' well-being around the world. Some painted themselves as national flags.

Peaceful protests hit G20 in Argentina Recycled Donald Trump Many protesters took aim at Trump, chanting, "Go away Trump" and creating effigies of the US president, such as this rendition above made of recycled materials. An inflatable blimp showing a baby Trump in a diaper, like the one that flew over London this summer, also made an appearance. While foreign officials say Trump is blocking global trade, protesters accuse him of exploitative capitalism. Author: Cristina Burack



US odd one out of climate change

On climate change, the G20 final communique left the United States isolated ahead of a UN climate meeting in Poland starting on Sunday to hammer out details of how countries will meet their commitments under the Paris accords to avert catastrophic global warming and mitigate its impacts.

All signatories confirmed their commitment to the Paris accord, but the G20 communique said the "United States reiterates its decision to withdraw from the Paris Agreement."

"We will send a clear signal — in any case, most of us" — for the success of climate talks in Poland, Merkel said.

Read more: Crunch time for the climate at COP24

The World Wildlife Fund and Greenpeace welcomed the final statement.

"The necessity of the US being part of the effort to fight climate change cannot be denied, but this is a demonstration that the US is still the odd one out," they said.

The Trump administration's position on climate change stands in opposition to the international scientific consensus and even his own government, which issued a report last week warning of huge economic costs if climate action is not taken now.

cw/sms (AFP, AP, dpa, Reuters)

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