U.S. President Donald Trump has raised expectations ahead of his summit with Chinese President Xi Jingping. Fred Katayama reports.
U.S. President Donald Trump ratcheted up the economic stakes for his summit meeting with Chinese President Xi Jingping at his Mar-a-Lago resort starting Thursday. He warned this week that the meetings will be "very difficult." James Nolt is senior fellow at the World Policy Institute. SOUNDBITE: JAMES NOLT, SENIOR FELLOW, WORLD POLICY INSTITUTE, (ENGLISH) SAYING: "He's raised the expectation that he's going to significantly change the U.S.-China relationship in the U.S.'s favor. It's not exactly clear what direction that will take. There are some concrete things he's talked about, including lowering the value of the dollar to the renminbi." Trump keeps saying China manipulates its currency to make its exports cheap, but despite his campaign vow, he refrained from declaring it a currency manipulator on his first day on the job. It has become harder to make that charge in light of the more than $1 trillion China has spent in the past two years to prop up the yuan. Another big issue on the agenda: trade. Trump insists China's trade policies are killing U.S. jobs. He has vowed to slap 45 percent tariffs on Chinese imports. Analysts like Nolt say Xi may bring a package of investments to show that China is helping create jobs in the U.S. U.S. Bank's Eric Wiegand says Wall Street isn't expecting much. SOUNDBITE: ERIC WIEGAND, SENIOR PORTFOLIO MANAGER, U.S. BANK, (ENGLISH) SAYING: "We don't have great expectations as far as particularly advancing any trade dialogue where we had seen such harsh rhetoric both during the campaign and since the inauguration." Neither side wants a trade war nor can afford one. The U.S. has been China's top trading partner, and China's purchases of Treasuries help finance the U.S.' massive debt.