Global leaders were expected to back an overhaul of the world body that regulates international trade disputes at a summit yesterday, delegates said, ahead of high-stakes talks between US President Donald Trump and Chinese President Xi Jinping aimed at defusing a trade war.

A consensus appeared to be emerging at the two-day gathering of the Group of 20 industrialized economies for a joint statement that would back reforms to the crisis-stricken World Trade Organization amid growing global trade tensions, according to officials from the European Union and summit host Argentina.

"We reiterate that the multilateral trading system is the framework in which we are all working and committed," an EU official said, referring to the language of a draft statement.

The WTO is on the verge of becoming dysfunctional, just when it is most needed to fulfill its role as umpire in trade disputes and as the watchdog of global commerce.

The United States is unhappy with what it says is the WTO's failure to hold Beijing to account for not opening up its economy as envisioned when China joined the body in 2001.

To force reform at the WTO, the United States has blocked new appointments to the world's top trade court. The European Union is also pushing for reform at the WTO.

G20 summit delegates said that negotiations on producing a final statement were proceeding more smoothly than at a meeting of Asian leaders two weeks ago that ended without a consensus, but they cautioned that the draft statement still required approval from leaders.

Trump said in a tweet that he was cancelling a news conference at the G20 summit as a mark of respect following the death of former President George HW Bush.

European officials said the draft document included a reference to climate change, which has proved a sticking point in the past with the current US administration.

The wording on climate change was "a little bit more than the status quo but not backtracking," one EU official said.

The first day of the G20 summit offered glimmers of hope for progress between Washington and Beijing despite Trump's earlier threat of new tariffs, which would increase tensions already weighing on the growth of the global economy.

But ahead of what is seen as the most important meeting of US and Chinese leaders in years, both sides said differences remained, and the outcome of the talks were uncertain.

This year's summit has proved to be a major test for the G20, whose leaders first met in 2008 to help rescue the global economy from the worst financial crisis in seven decades.

With a rise in nationalist sentiment in many countries, the group, which accounts for two-thirds of the global population and 85 percent of the global economy, faces doubts over its ability to deal with trade tensions and other geopolitical differences among its members.

Apart from trade and climate change, Russia's seizure of Ukrainian vessels has drawn condemnation from other G20 members, while the presence of Crown Prince Mohammed bin Salman at the summit has raised an awkward dilemma for leaders.

Saudi Arabia's de facto ruler, who arrived amid controversy over the murder of Saudi journalist Jamal Khashoggi, has been ignored by other leaders at public events, although he has had a series of bilateral meetings with them in private.

Saudi Arabia has said the prince had no prior knowledge of the murder.

A Chinese foreign ministry official in Buenos Aires said there were signs of increasing consensus ahead of the discussions but that differences persisted.

Beijing hopes to persuade Trump to abandon plans to hike tariffs on $200 billion of Chinese goods to 25 percent in January, from 10 percent at present. Trump has threatened to go ahead with that and possibly add tariffs on $267 billion of imports if there is no progress in the talks.

President Xi Jinping declared China is entering a "new era" of challenges and opportunities on Wednesday as he opened a Communist Party congress expected to enhance his already formidable power.

Xi told some 2,300 delegates at the imposing Great Hall of the People that the party must "resolutely oppose" any actions that undermine its leadership as it steers a course through a high-stakes period in its development.

"The situation both domestic and abroad is undergoing profound and complex changes," said Xi, who is expected to secure a second five-year term as general secretary and stack leadership positions with loyalists during the twice-a-decade congress.

"China's development is still in a stage of important strategic opportunities. The prospects are bright, but the challenges are also severe," he said. "Socialism with Chinese characteristics enters a new era."

Speaking in front of a massive hammer and sickle, Xi extolled China's rising clout abroad and its fight against poverty and inequality at home, as well as his "zero tolerance" campaign against corruption within the party.

"Every one of us in the party must do more to uphold party leadership and the Chinese socialist system and resolutely oppose all statements and actions that undermine, distort or negate them," he said.

Considered China's most powerful leader since Deng Xiaoping or even Mao Zedong, Xi could use the congress to lay the foundation to stay atop the 89-million-strong party even longer than the normal 10 years, according to analysts.

That would break the unwritten two-term limit accepted by his immediate predecessors Jiang Zemin and Hu Jintao -- who were by Xi's side at the congress -- and end the era of "collective leadership" aimed at preventing the emergence of another Mao.

Another signal of Xi's rise to the pantheon of Chinese leadership would be if his name is added to the party constitution, an honour that has only been bestowed upon modern China's founder, Mao, and the father of economic reforms, Deng.

'Tigers and flies'

Potential rivals have been swept aside under Xi's vast anti-corruption drive, which punished 1.3 million Communist Party officials over five years.

Xi said the campaign has been "unswervingly fighting against 'tigers', 'beating flies', 'hunting foxes'" -- terms used for lower- and higher-ranking officials.

His rise has also been marked by a relentless crackdown on dissent, with authorities even refusing to free Nobel peace prize laureate Liu Xiaobo as he lay dying of cancer in July.

On other fronts, Xi touted efforts to restructure the military and build artificial islands in the disputed South China Sea.

Xi, who has championed globalisation in the face of President Donald Trump's "America First" policies, vowed to further open up China's economy.

Foreign companies complain that Xi's words have not been backed by deeds, as the state retains control over the economy.

US and European firms report being barred from certain sectors and forced to share their technologies with local competitors.

Trump, who will visit Beijing next month, has launched a trade investigation into China's intellectual property practices.

"China will not close its doors to the world, we will only become more and more open," Xi said, pledging to "protect the legitimate rights and interests of foreign investors" and treat all businesses equally.

Legitimacy at risk

Authorities stepped up policing for the week-long congress, with red armband-wearing "security volunteers" fanning out across the capital, karaoke bars closing and online kitchenware firms even suspending knife sales.

The conclave, which ends next Tuesday, will select new top party members, including in the Politburo Standing Committee, China's all-powerful ruling body.

Xi and Premier Li Keqiang are expected to remain on the committee while the five other current members are supposed to step down under an informal retirement age set at 68.

But Xi may lobby to retain his 69-year-old right-hand man Wang Qishan, who heads the leader's signature anti-graft campaign. This would create a precedent for Xi himself to remain in charge beyond retirement age in 2022.

"If Xi expresses intent to lead beyond his 10-year limit, this would be reminiscent of the Mao era, which would be damaging to Xi's legacy and call his legitimacy into question," said Simone van Nieuwenhuizen, a Sydney-based researcher and co-author of "China and the New Maoists".

But a Xi heir apparent could emerge from the congress.

One former potential successor who was outside Xi's circle, Sun Zhengcai, was ousted from the party last month due to graft allegations.

Chen Miner, a former Xi aide who succeeded Sun as political chief in the city of Chongqing, is now well positioned for promotion.

Nepal's Prime Minister KP Sharma Oli, who is on a six-day official visit to China, met his Chinese counterpart Li Keqiang at the Great Hall of the People in Beijing today.

On the occasion, the two countries signed agreements on 10 different topics including one on the construction of railway. Four Memorandum of Understanding ( MoUs) were also inked during the occasion.

The agreement reached between the two sides also includes promoting energy cooperation. They have also reached understanding regarding the use of highway in Tibet, energy, economic and technical cooperation and human resources development.

Copyright: The Kathmandu Post/ANN