What is the G2 grouping that Trump sought to revive in his meeting with Xi?

US President Donald Trump described his meeting with his Chinese counterpart Xi Jinping in Busan as “amazing”, while assuring to bring down the average tariffs to 47 per cent and calling the relationship as that of “G-2” nations.

The meeting between the two leaders was aimed at bringing a possible halt to the rising tariffs and easing the export restrictions on rare earth minerals.

Donald Trump posted “The G2 will be convening shortly!” on Truth Social ahead of his meeting with Chinese President Xi Jinping in South Korea. It was more than a rhetorical flourish.

What is G2?

The term was first coined in 2005 by a famous economist, Fred Bergsten. The G2 (Group of Two) refers to the group of then (and still) the world’s two largest economies, the United States (US) and China.

The group aimed to jointly address the global challenges like climate change, financial stability and security with a core idea that the US and China can work together in such domains, similar to the lines of G-7 or G-20 but with just two dominant players.

During the 2008 global financial crisis, the idea gained traction among European and US economists speculating on the possibility of reducing US deficits and using China’s surplus to stabilise the global economy.

  According to the United States International Trade Commission, the US trade deficit with China increased by three per cent to $270.3 billion in 2008.

The G2 remained a conceptual framework and was never implemented formally.

China’s response

Premier Wen Jiabao publicly dismissed the idea of G2 in 2009, stating, “It is impossible for a couple of countries or a group of big powers to resolve all global issues. Multi-polarisation and multilateralism represent the larger trend and the will of people.”

Guided by the principle of ‘Taoguang Yanghui’ (hide your strength, bide your time) to keep a low profile and avoid strategic overreach.

When asked about the ministry of external affairs’ response on the summit, spokesperson Randhir Jaiswal refrained from making a conclusive statement about the summit.

“As far as the question of the latest talks (between Donald Trump and Xi Jinping) and relaxations that have happened between the US and China, as to how it is going to play into our domain, I will come back to you. We have yet to look at it. I am not aware of the technicalities,” he told reporters at a press briefing last  week.