Published: Sat, October 12, 2019
Global News | By Blake Casey

China talks fuel hopes of trade war truce

China talks fuel hopes of trade war truce

Instead, a smaller deal could include new currency agreements, Chinese commitments on farm purchases and a halt on United States tariffs that are due to increase next week.

First, an "ice-breaking meeting that will lead to a major deal" in the coming months, second, a "mini-deal" focusing on China's purchase of US products and some structural reforms while new tariffs get postponed indefinitely, third, a no-deal status quo where new tariffs come into play, but negotiations continue, and finally, a break-up scenario, where there's no deal and no further dialogue between the USA and China.

But Friday's announcement did not include many details and Trump said it could take up to five weeks to get a pact written.

Other issues, such as allegations over China's use of trade secrets, will be discussed in later negotiations, the AP said. In return, Washington suspended the tariff hikes on Chinese goods scheduled for next week.

Treasury Secretary Steven Mnuchin said both sides struck an "almost complete agreement" on currency and financial services issues.

It would also strengthen Chinese protections for American intellectual property and give financial services companies more access to China's market, the president said.

"One of the great things about the China Deal is the fact that, for various reasons, we do not have to go through the very long and politically complex Congressional Approval Process", Trump wrote.

In a Friday letter sent to US President Donald Trump, Chinese President Xi Jinping asked that the two nations "work together to manage differences on the basis of mutual respect".

Google can't keep secrets, so all hail the Pixelbook Go
For connectivity, this laptop might come with Two USB-C ports, 3.5mm headphone jack, WiFi and Bluetooth options. The report included multiple images of the new device as well as a detailed hands-on video of the prototype.

On Thursday and earlier Friday, Liu and U.S. Trade Representative Robert Lighthizer held the first senior-level discussions between Washington and Beijing since a previous agreement fell apart in May and tariffs were raised in the months after.

In a sign of how eager investors have been for a resolution on trade, anticipation of a deal was enough to lure some investors back into stocks and push them out of traditionally safer bets like gold, the Japanese yen and Treasurys.

President Donald Trump said Washington will suspend a tariff hike planned for Tuesday on $250 billion of Chinese goods. Trump launched a tariff campaign early a year ago as part of a strategy to end China's decades-long unfair trade practices.

The trade war between the world's top two economies, now in its 15th month, has sent shockwaves through the global economy.

The deal is far from the type of comprehensive agreement Trump has been pushing for, and it leaves some of the administration's biggest concerns about China's economic practices unresolved.

China Daily, an English-language newspaper owned by the Communist Party of China, released an editorial on Friday saying, "A partial deal is a more feasible objective". "So you'll either have two phases or three phases".

With respect to Huawei, Lighthizer said "it's not part of this agreement". That would tax virtually every good the USA buys from China.

United States stocks ended more than 1 percent higher on Friday but well off the day's highs after the announcement, with the S&P 500 up 1.09 percent after rising as much as 1.7 percent earlier on hopes of a deal.

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