Trump predicts he’ll make trade deal with China

Andrew Cummings
November 4, 2018

The leaders of the world's two largest economies made the remarks after their first publicly disclosed telephone conversation in nearly six months.

Meanwhile, Jake Parker, vice-president for China operations at the US-China Business Council, said that the presidents' telephone call created an opportunity for the two countries to discuss their many disputes - from the trade imbalance to China's forced technology transfers - but none of them would be easy to resolve. "Those discussions are moving along nicely with meetings being scheduled at the G-20 in Argentina".

"Trump said the two countries have a chance to make a fair deal".

Xi told Chinese state media on Thursday that he was willing to meet Trump at the summit and hoped to promote a steady relationship. "They all want to do it".

Just after the upbeat readouts of the Trump-Xi call, the Justice Department announced the latest in a long list of actions against what Trump administration calls China's cheating through intellectual property theft, unfair corporate subsidies and rules hampering United States corporations in China.

The Trump administration has imposed tariffs on $250 billion worth of Chinese goods, and Trump has suggested that tariffs could be coming for all other Chinese imports, worth as much as $267 billion, not now subject to duties. Trump points to stock prices as a barometer for his administration's economic success-blaming the Federal Reserve and Democrats for declines.

President Xi Jinping has promised tax cuts and other help to China's entrepreneurs in a renewed effort to revive growth in a cooling, state-dominated economy amid a mounting tariff battle with Washington.

"If this does turn out to be ZTE round 2, the president will be attacked by Democrats, and some Republicans, for talking a huge game on China but instead being played", said Derek Scissors, a China expert at the American Enterprise Institute.

Kudlow said on CNBC that the meeting agenda between Trump and Chinese President Xi Jinping at the end of November in Buenos Aires has not yet been worked out, but "we may have a very good meeting in Argentina with President Xi". The conversation was mainly about trade, but also about North Korea.

"The issues driving the China-US trade tensions are complicated and contentious, which makes it incredibly hard to believe that substantive progress was made during this phone call", Boltansky said.

BOTH the USA and China have sought to portray the personal relations between the two leaders as a source of stability in the relationship, and they have refrained from direct criticism of each other. "We talked about many subjects, with a heavy emphasis on Trade". An early-December announcement of a new product list could make the effective date-after a 60-day public comment period-coincide with China's Lunar New Year holiday in early February.

The two nations had already imposed tariffs on Dollars 50 billion of each other's goods before the September sanctions. Ten percent tariffs on $200 billion in imports that took effect in September are due to increase to 25 percent on January 1. The Department of Justice in recent weeks has indicted multiple Chinese firms for attempted intellectual property theft, and Attorney General Jeff Sessions announced an initiative to curtail Chinese economic espionage.

"There is a long way to go" on negotiations, the United States official said, according to the tweet.

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