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Trade war, day 153: China affirms ‘very successful’ trade meeting

07 December 2018
Trade war, day 153: China affirms ‘very successful’ trade meeting

The US and China paused a trade war after several months, agreeing to halt new tariffs for 90 days.

He said the Chinese delegation to the G20 summit went to Panama after Buenos Aires and haven't returned to China.

China and the United States have reached agreement in the sectors of agriculture, autos and energy, and China will immediately start implementing that consensus, a government spokesman said.

What's more, it only took a few days before Trump he began threatening Beijing again. Stocks sank across the world, in part over fear that an escalation in tariffs would choke off economic growth and possibly send a global slowdown into a recession.

US stocks fell sharply again Thursday, following steep drops on Asian and European markets, with investors anxious about the fate of trade negotiations between the United States and China, the world's two biggest economies.

The two sides have given themselves 90 days to negotiate "structural changes" in the way China handles technology transfer, intellectual-property protection, cyber-theft and other issues. Failure would raise the spectre of fresh U.S. tariff moves and potential Chinese retaliation as early as March. These practices, according to the administration and outside analysts, include stealing intellectual property and forcing companies to turn over technology to gain access to China's market.

That's why carmakers and vehicle parts manufacturers on both sides of the Pacific were initially buoyed by the claim of an "incredible" trade deal emerging from the 2-1/2 hour dinner meeting President Donald Trump held with his Chinese counterpart Xi Jinping on Sunday at the G-20 summit.

Mr Xi and Mr Trump had "deep exchanges in a friendly and candid atmosphere", setting the direction for an appropriate resolution to the problems between the two countries, Mr Wang said, in a statement carried on the foreign ministry's website.

But China is showing little indication it would accept a major overhaul of its state-driven system, a move that economists say would be necessary to even out the trade imbalance that Trump scorns. Not only are there not going to be additional tariffs at the beginning of 2019, but China has agreed to purchase a substantial amount of USA products from a variety of industries in order to equalize the trade imbalance. The Dow finished the day just a hair over 25,000 points-meaning that the stock market has been basically flat since March 1, when Trump announced the first round of tariffs and the Dow was sitting at 24,600 points.

Executives from the three automakers were invited to individual meetings with Trump's top economic advisers to discuss investment opportunities in the United States, including in manufacturing and research and development, the White House said.

One particularly damning tweet by Trump boasted, "I am a Tariff Man".

"When people or countries come in to raid the great wealth of our Nation, I want them to pay for the privilege of doing so", he said. "Ultimately, I believe, we will be making a deal - either now or into the future", Trump wrote in a post within minutes of the Commerce Ministry statement.

It was not clear whether the preparations meant China would cut the retaliatory tariffs it imposed on those products, or when the purchases would happen.