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The US-China trade war has caused "collateral damage" around the world, according to Prime Minister Scott Morrison, who will today warn the global trading system is under real pressure as the relationship between the countries continues to deteriorate.
Key points:
- The US and China have increased tariffs on each other's imports in the past year
- Prime Minister Scott Morrison will warn of the pressures of the countries' trade war on the global trading system and growth projections
- US President Donald Trump and Chinese leader Xi Jinping are expected to meet at the G20 Leaders' Summit to discuss a resolution
Ahead of the G20 Leaders' Summit in Japan, Mr Morrison will tell a foreign policy forum in Sydney the costly trade dispute has put pressure on financial markets and threatened regional stability.
Both sides have slapped hundreds of billions of dollars' worth of tariffs on each other's imports in the past year.
Mr Morrison will say that as a result, the global trading system is under pressure and growth projections are being wound back.
"The impact of any further deterioration of the relationship will not be limited to these two major powers," the PM is expected to say.
"The balance between strategic engagement and strategic competition in the US-China relationship has shifted.
"This was inevitable."
But Mr Morrison will tell the forum Australia will not be "fazed, intimidated or fatalistic", and will take practical steps to try to mitigate the risks of the deteriorating relationship.
"We will play our part. We will not be passive bystanders," he will say.
"Our approach will be based on key principles.
"A commitment to open markets with trade relationships based on rules, not coercion."
United States President Donald Trump and Chinese leader Xi Jinping are expected to meet on the sidelines of the world leaders' summit to discuss a resolution to the trade war.
Mr Morrison will say Australia's relationship with both countries continues to be strong.
"We embrace free trade, global engagement and an international system where [we] agree to rules, stick to them and honour our commitments.
"That is the surest path to an open, stable and prosperous Indo-Pacific."
Topics: trade, business-economics-and-finance, international-aid-and-trade, donald-trump, jinping-xi, scott-morrison, united-states, china, asia, australia