Wednesday, 21 November, 2018

Trump says will meet China's Xi as trade talks 'move along'

World stock markets rally on news of Trump Xi talks Trump Confident of Fair Trade Deal with China
Russell Knight | 04 November, 2018, 14:38

US President Donald Trump is convinced that the United States and China can come to a deal about their trade dispute.

"I think we will make a deal with China and I think it will be a very fair deal for everybody", Trump said while speaking to reporters from the White House.

Trump administration officials have said that trade talks with China can not resume until Beijing comes up with specific actions it is willing take to meet U.S. demands for sweeping changes to policies on technology transfers, industrial subsidies and market access.

US President Donald Trump has signalled an end to an ongoing trade feud with China as US stocks plunge over mounting concerns over the fallout.

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The news comes as the volatile trade relations weigh in on the U.S. stock market, with stocks taking a turn after a rally in world equity markets came to a close and gains reversed on Wall Street. "They very much want to make a deal", Trump said.

The US president said talks were "moving along nicely" and that he planned to meet with Xi on the sidelines of the G20 summit at the end of November in Argentina. For example, it's unknown whether he is considering relenting on his administration's hard line against China's theft of United States intellectual property, which one of the people said remains a key sticking point in any potential deal.

"Both leaders attach great importance to China-U.S. ties and economic ties", Lu said. Beijing also emphasized that bilateral trade is in principle beneficial for both parties.

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White House economic adviser Larry Kudlow downplayed the potential for a quick deal.

"We do hope that China and the United States will meet each other halfway and work together in the spirit of mutual respect and equality", Li told Trump's fellow Republicans.

Tu Xinquan, a trade expert at Beijing's University of International Business and Economics, said he was sceptical that the Trump administration was truly ready to deal, and that other factors, such as the mid-term congressional elections, could be driving statements from the administration.

With these comments, Trump reacted to rumors that he would actually sign a trade agreement with China at the G20 summit.

In May, after his last phone call with Xi, Trump agreed to ease up on sanctions imposed on Chinese telecom equipment maker ZTE Corp., saying they would cost too many Chinese jobs. "We're not on the cusp of a deal". "But the tariffs already imposed will not go away", Tu said.

"After Trump's tweet the board is up and the basis is going to be down today", said one Brazil-based market source, although a US source said that offers from the US Gulf remained unchanged.

China has repeatedly questioned the US's sincerity in trade talks, wary of agreeing to something only to have Trump change his mind.

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