Published: Fri, December 07, 2018
Markets | By Otis Pena

Donald Trump Demands 'REAL DEAL' with China Despite Shaken Stock Market

Donald Trump Demands 'REAL DEAL' with China Despite Shaken Stock Market

U.S. President Donald Trump said in a statement that Beijing has agreed to "reduce and remove" the 40% tariffs that it places on U.S. cars that are imported into China. But he added, "if that's real" - raising some doubt - it would close the USA trade deficit with China, and 'we have to have a negotiated agreement and have this on paper'.

U.S. President Donald Trump, who rattled global markets Tuesday after declaring himself "a Tariff Man", predicted in a series of tweets Wednesday the United States and China would negotiate a new trade deal. USA markets were closed on Wednesday to observe former President George H.W. Bush's death, but the effect of Wall Street's turmoil the previous day was felt in Europe and Asia with the benchmark Shanghai stock index closing down 0.6 percent.

Trump and the Chinese president, Xi Jinping, had reached a temporary truce in their trade war at a meeting over dinner at the G20 in Argentina on Saturday.

Trump, however, also threatened to impose tariff on China, if failed to reach an agreement with the given deadline.

While it remains to be seen if Washington and Beijing can iron out their trade differences, it would be beneficial for both sides' energy sectors to at least reach some sort of deal that would allow the free trade of energy between the two super powers.

Chinese State Councilor Wang Yi told reporters, "The two presidents agreed that the two sides can and must get bilateral relations right".

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The mood has quickly soured, however, on scepticism that the two sides can reach a substantive deal on a host of highly divisive issues within the 90-day negotiating period, and markets continued to slide on Wednesday in part from confusion over the ceasefire's lack of detail.

In return, China agreed to buy what the White House called a "not yet agreed upon, but very substantial" amount of USA products to help narrow America's gaping trade deficit with China.

The U.S. had a $335.4 billion trade deficit with China in 2017.

Trump tweeted on Monday that his meeting with President Xi was "extraordinary", and that "very good things" will happen in terms of the United States' relationship with China.

Trump and Xi also agreed to immediately begin negotiations on structural changes with respect to forced technology transfer, intellectual property protection, non-tariff barriers, cyber intrusions and cyber theft, services and agriculture, according to the White House statement.

One Chinese official said officials were "waiting for the leaders to return" before publicising 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.

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