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China grain traders await lower tariffs before U.S. return

05 December 2018
China grain traders await lower tariffs before U.S. return

President Donald Trump tweeted late Sunday that China would "reduce and remove" its 40 percent tariff on US cars. Trump said on Tuesday that Lighthizer would work closely with Mnuchin, Kudlow and trade adviser Peter Navarro.

The commerce ministry is due to hold its weekly news briefing on Thursday.

Meanwhile, as Trump and White House officials tout the truce, Beijing has said little on a pact that cheered markets but left many questions unanswered.

However, while President Donald Trump has been talking up the truce brokered at the G20 summit as "an incredible deal" and potentially "one of the largest deals ever made", there is every reason to look closely at the fine print-or the lack thereof.

In return, Washington said China would purchase "very substantial" amounts of USA agricultural, energy, industrial and other products. "We said that you also have to demonstrate greater market access, and one of the many ways they can do that is by purchasing hundreds of billions of dollars of both agriculture and non-agriculture products".

Steven Mnuchin, the Treasury secretary, said that China had agreed to buy US$1.2 trillion of American products, but he could not offer specifics.

Washington and Beijing said they will try to achieve a permanent deal within the next 90 days, however the US still has significant leverage, stating that if a formal deal can't be reached then it will hike tariffs from 10 percent to 25 percent, which could roil global stock markets, stagnate global economic growth, dampen oil demand growth and possibly lead to a recession across the globe, particularly in emerging economies.

Wang did not mention this timeframe, though Chinese state media has. Trump named U.S. Trade Representative Robert Lighthizer to lead the talks with Beijing. They wouldn't even acknowledge that there was a 90-day deadline under which they were operating.

"I think there'd be quite a burst in shipments of small, less-expensive Korean cars to China, and also of parts, that's another big part of auto trade", he said.

"We need to see some major changes in their behaviour", he said, speaking at the same event as Kudlow.

However, following Monday's rally, markets on Tuesday sold off as doubts over what could realistically get accomplished in the tight negotiating window added to concerns about fading global growth.

U.S. President Donald Trump warned China on Tuesday that if President Xi Jinping failed to make good on the trade promises reached during their weekend meeting, the United States would impose additional tariffs on Chinese imports.

That may reflect differences in political culture more than anything, said Luwei Rose Luqiu, a journalism professor at Hong Kong Baptist University.

More often than not, such statements are short on details, said Luqiu, who covered meetings between Chinese and foreign leaders during 20 years as a reporter with Hong Kong's Phoenix TV.

On Monday, influential Chinese tabloid the Global Times said it understood China and the United States will further discuss moves at expanding market access, intellectual property protection, avoiding compulsory technology transfers, and joint control of cyber crime.

"This is China's political culture".