Published: Wed, January 09, 2019
Markets | By Otis Pena

Trump Said to Want Trade Deal With China to Boost Stock Market

Trump Said to Want Trade Deal With China to Boost Stock Market

The Chinese side firmly opposes the relevant action by the United States side and urges the U.S. to immediately stop such provocations.

Forecasters at the International Monetary Fund and the Organization for Economic Cooperation and Development have downgraded their outlook for the global economy, citing among other things the costs and uncertainty arising from the standoff between the US and China.

In a sign the meeting was off to a good start, China's economic czar, Vice Premier Liu He, dropped by the talks on Monday to encourage the negotiators.

The U.S. team, led by Deputy U.S. Trade Representative Jeffrey Gerrish, included under secretaries from the Departments of Agriculture, Commerce, Energy and Treasury, and senior officials from those agencies and the White House.

Increased purchases by China of USA soybeans, oil, liquefied natural gas and financial services are viewed as easier to achieve than major changes to China's industrial policies aimed at transferring U.S. technology to Chinese firms.

But he said agreement on structural trade issues would be harder to reach.

The statement came as trade talks between China and the United States were under way in Beijing, the first round of face-to-face discussions since both sides agreed to a 90-day truce in a trade war that has roiled global markets.

Asked for his reaction on the American ship sailing through the Paracel islands which China claims Xisha islands, Chinese Foreign Ministry spokesman Lu Kang said Beijing has lodged strong protest to the USA on this.

China-U.S. trade talks restart as warship clouds negotiations

The Trump administration is dealing with an increasingly strong China that has its own pressing needs, said the Global Times, which is published by the ruling Communist Party.

U.S. Secretary of State Mike Pompeo told CNBC that the United States and China are "making progress" on trade.

A US Navy guided-missile destroyer on Monday sailed near disputed islands in the South China Sea where Beijing has built military installations, sparking anger in China as trade talks between the two countries kicked off.

Trump has imposed 25 percent tariffs on $50 billion of Chinese good and 10 percent duties on $200 billion of imports. The US action violated the worldwide law and destroyed the peace, safety and order in the relevant waters.

"This trade fight couldn't have come at a worse time for China". -China trade talks in Beijing are progressing well, as Chinese authorities planned to give a statement following the latest round of negotiations.

For their part, Chinese officials are unhappy with USA curbs on exports of "dual use" technology with possible military applications.

Mr Ross said there was a "very good chance" of reaching an agreement, although monitoring compliance would present a challenge. That includes giving specific dates for making purchases, and making assurances that Beijing won't hinder USA companies from gaining access to China's market.

The U.S. economy grew at an annual rate of 3.4 percent in the third quarter, and unemployment is at a five-decade low. The threat of USA tariff hikes was the "dominating factor" for almost half, while others moved because of higher costs or tighter environmental regulation. They complain China's companies are treated unfairly in national security reviews of proposed corporate acquisitions, though nearly all deals are approved unchanged.

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