US-China trade war unlikely to end soon, ex-Chinese central bank chief says

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Trump: US is not ready for trade deal with China

President Trump has threatened an additional round of tariffs on Chinese exports as trade talks stall. Insight from Gene Marks, president of the Marks group.

The deadlock over trade between the U.S. and China is unlikely to end during next month's G20 summit in Japan, with a former Chinese central bank chief blaming President Trump for the lack of breakthrough.

Both countries have been engaged in a trade war amid Trump’s call for fair trading practices that don’t take advantage of the U.S. economy.

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Earlier this month, he pushed up tariffs on $200 billion in Chinese imports from 10 percent to 25 percent.

In retaliation, China increased tariffs on thousands of American products worth about $60 billion. A 25 percent tariff was levied on a few thousand other products, including soy oil, peanut oil, petrochemicals, frozen minerals and others.

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Trump said Thursday that the U.S. tariffs on Chinese goods are making an impact on the Asian nation's economy and will effectively force its leaders in Beijing to agree to a trade deal.

“I think we’re doing very well with China. We’ll see what happens. But I can tell you China very much wants to make a deal because the companies are leaving China to avoid the tariff,” Trump said.

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Dai Xianglong, former governor of the People’s Bank of China, said Friday that while China’s President Xi Jinping and Trump will likely meet next month in Japan, it remains improbable that the trade war will end.

“Leaders of China and the U.S. will meet late next month in Japan and I hope there will be positive news [from the meeting],” He said, the South China Morning Post reported.

“However, [any breakthrough] would not be easy because it is actually very difficult for the U.S. side to form a powerful and systematic correction that can right the wrongs made by [President] Trump,” he added.

"[Any breakthrough] would not be easy because it is actually very difficult for the U.S. side to form a powerful and systematic correction that can right the wrongs made by [President] Trump."

— Dai Xianglong, former governor of the People’s Bank of China

A meeting between Xi and Trump at the G20 summit is also expected, according to Vice President Mike Pence.

He said Thursday during a visit to Canada that the meeting won’t just focus on trade but also on the issue of detained Canadians in China. “I expect the issue will come up again at the G20,” Pence said.

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“We’re going to continue to urge China to release the Canadian citizens even while we deal with the larger economic and structural issues,” Pence added.

The Associated Press contributed to this report.