China promises action on United States trade deal but gives no details

Dec 07, 2018, 00:25
China promises action on United States trade deal but gives no details

Values in NY surged on Monday but sank on Tuesday amid doubts the suspension of tariff hikes agreed during talks between Donald Trump and his Chinese counterpart Xi Jinping at the weekend would lead to a concrete deal to end their trade war.

In return for the postponement in the higher United States tariffs, China agreed to step up its purchases of USA farm, energy and industrial goods, the White House said.

Officials from the United States and a number of other major economies have often criticized China for its slow approach to negotiations and not following through on commitments.

In addition, Treasury Secretary Steven Mnuchin said Tuesday on the Fox Business Network that China agreed to buy $1.2 trillion of USA products.

Global growth was already slated to slip to 3.5% next year from 3.7% even without accounting for the risks of escalating USA tariffs and China's counter-tariffs, according to estimates by the Organization for Economic Cooperation and Development, an intergovernmental think tank of 36 nations. The slew of Trump tweets prompted markets to fall as investors lost faith in a detente between the two nations. "Unless extended, they will end 90 days from the date of our wonderful and very warm dinner with President Xi in Argentina", Mr Trump said on Twitter.

"The United States has put forward many demands, not all of them reasonable", he said.

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In return, Washington said China would purchase "very substantial" amounts of USA agricultural, energy, industrial and other products.

China has said comparatively little about the Trump-Xi agreement after senior Chinese officials briefed the media following the leaders' meeting, and there have been some differences between the two sides' accounts of what the deal entails. "President Xi and I want this deal to happen, and it probably will", he said. Trump has not promised to lift all tariffs against Chinese goods.

During the talks in Buenos Aires, Trump agreed to delay a scheduled escalation in USA tariffs on many Chinese goods, from 10% to 25%, that had been set to take effect January 1.

While he said he would "happily sign" a fair deal that addresses U.S. concerns, he warned: "remember, I am a Tariff Man".

Team Trump said China would agree to purchase a not yet agreed upon, but very substantial, amount of farm, energy, industrial and other products from the US.

"We don't yet have a specific agreement on that, but I will just tell you as an involved participant, we expect those tariffs to go to zero", Kudlow told Politicoreporter Megan Cassella about Trump's auto tariff claim.

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President Trump had hailed the pause as an incredible deal, saying China had promised a number of measures.

Su believed that the important consensus reached by Xi and Trump would offer direction for future China-U.S. relations.

"We wouldn't be surprised if no agreement can be reached within 90 days, with the higher tariff rate coming into force only a few months later than originally planned".

By Tuesday, the optimism had completely faded as Trump once again called out China for its trade practices.

"Global demand for US red meat is very strong, but exports can not reach their full potential until the retaliatory duties imposed by Mexico, China and Canada are removed", he said.

"We are now taking in $billions in Tariffs".

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The president, China's most powerful leader since at least the 1980s, flew from Argentina to Panama for an official visit and on Wednesday was in Portugal.