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US, China trade war sees a pause

06 December 2018
US, China trade war sees a pause

U.S. indexes rose about 1% on Monday, following gains in Europe and Asia.

Washington will raise duties on Chinese goods, Beijing will increase the imports from America and the parties would meet within 90 days of the negotiations to resolve disputes in trade. A temporary truce rather than an agreement was reached between the two, where both sides would negotiate over trade and China's alleged malpractices in forced technology transfer.

Despite the questions, US President Donald Trump was in an ebullient mood, promising benefits to US farmers and vehicle companies. It is my great honour to be working with President Xi, ' Trump said in the statement. In September, the last month that was recorded, the monthly USA trade deficit with China was $40 billion. But the Chinese government has made no mention of cutting auto tariffs as a result of the meeting between the two leaders in Buenos Aires. -China trade deal would immediately allow American farmers to sell more of their products to Beijing.

G20 nations were still struggling to agree on the wording for the summit's communique on major issues including trade, migration and climate change, which in past years have been worked out well in advance. Trump has agreed not to boost tariffs on $200bn of Chinese goods from 10% to 25% on January 1, 2019.

"(China will purchase) agricultural, energy, industrial and other products from the United States to reduce the trade imbalance between the two countries", Washington said.

Many U.S. importers of Chinese bike goods have been hustling since this spring to move production out of China, either to other low-priced Asian countries or to the U.S. But in many cases, manufacturers said such moves can take years to complete. Chinese regulators in July blocked Qualcomm's $44 billion takeover bid for its Netherlands-based rival, NXP Semiconductors NV.

The two sides would "step up negotiations" toward full elimination of all additional tariffs, Wang said.

Tensions between the United States and China rose in May when the USA administration said it would levy extra taxes on $50 billion worth of Chinese goods, bringing that figure up to $250 billion over the next few months.

The not-so-subtle disparities between the USA and Chinese official statements highlight how much a gap needs to closed in the three-month trade war time-out.

On Sunday, Trump tweeted that China had agreed to cut import levies on American-made cars.

"I believe it's hard to complete all the related tasks and resolve all the issues clearly within 90 days".

"China will be opening up".

Xi appears to have offered up non-trade measures to build goodwill in the relationship at a time of multiple converging tensions, from the South China Sea to Taiwan.

What pushed the two sides to the table?

China has agreed to start purchasing agricultural products from our farmers immediately. By midyear, soybean exports to China were down by 20.5%, according to CNBC. However, the state of the Chinese economy has been putting pressure on Xi, as economic growth has slowed this year, battering its stock market.

China responded by imposing its own tariffs.

However, concerns remain over the differences between the official statements released by the two countries.