‘BIG leap forward,’ says Donald Trump on US-China relations

Andrew Cummings
December 7, 2018

President Donald Trump and executives from Germany's biggest automakers discussed the companies' investments in the USA on Tuesday as trade tensions with the Europeans and Trump's threat to impose tariffs on foreign cars sold here loomed overhead.

The remarks, by the Chinese Commerce Ministry, follow a period of relative quiet from Beijing after Trump and Chinese leader Xi Jinping reached a temporary truce in their trade war at a meeting over dinner in Argentina on Saturday.

The G20 produced some major developments on the trade war front, with the US and China agreeing to a 90-day truce while a deal is negotiated.

"If it is, we will get it done", Mr Trump said in a Twitter post.

But Mnuchin said, "I think there's no question the president's tariff strategy has worked. ALL subjects discussed!" Trump wrote on Wednesday.

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

A vow by China to reach a trade settlement with the United States has helped settle financial markets after steep falls in USA stocks. He said China discussed up to $1.2 trillion in commitments that could potentially help reduce the USA trade deficit.

According to the White House, China has agreed to buy a "very substantial" amount of agricultural, energy, industrial and other products from the United States to reduce a yawning trade gap, as well as to negotiate over Washington's assertions that Beijing steals American technology.

US soybean farmers took a significant hit from the trade war after China imposed a 25% tariff on the agricultural product in retaliation for USA tariffs on $200 billion of Chinese imports.

Trump's words had the effect of making the already vague and uncertain weekend agreement seem even less likely to produce a long-lasting trade accord.

The stock market will be closed on Wednesday, during President H.W. Bush's funeral.

'People are still very concerned about the trade war, ' Dan Suzuki, portfolio strategist at Richard Bernstein Advisors told CNN. -China relations "will remain contentious".

China and the United States also agreed to continue negotiations concerning agriculture, energy, services and other sectors of the economy.

Former U.S. State Department official Mintaro Oba said the fact that Trump's statements about the meeting don't match the official White House version of what happened at the G20 means Trump's claims should be taken with a grain of salt. In a series of Tuesday morning tweets, the president showed optimism about reaching a "fair deal", but stressed that he is "a Tariff Man" if talks fail.

One Chinese official told Reuters officials were "waiting for the leaders to return" before publicizing details. Xi and his most senior officials, including the commerce minister and the country's two top diplomats, are in Portugal, and due back in China on Thursday. "China is willing to increase imports in accordance with the needs of its domestic markets and the people's needs, Wang said, "including marketable products from the United States, to gradually ease the imbalance in two-way trade". This article is strictly for informational purposes only.

"It will be a win-win situation if a deal is realized".

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