Asia markets rise after U.S. and China agree to trade truce

Asia markets rise after U.S. and China agree to trade truce

Asia markets rise after U.S. and China agree to trade truce

Trump said that Xi had also agreed to rank fentanyl trafficking among the most serious crimes in China.

The state-run China Daily struck a cautious tone.

US-China trade divisions meant an Asian economic summit earlier this month was unable to agree a formal leaders' statement for the first time in its history. China has retaliated with duties on some $110bn of United States goods over the same period.

Trump has already imposed import taxes on $250 billion in Chinese products - 25 percent on $50 billion worth and 10 percent on the remaining $200 billion.

Resolving the tariff war between the US and China is seen as crucial for American agriculture, particularly soybeans, America's largest export to China, which accounted for $12.4 billion in sales a year ago.

Chinese state TV says agreement has been reached with the U.S. not to impose any additional trade tariffs after 1 January and talks will go on. "Discussion on economic and trade issues was very positive and constructive".

Growing concerns that the trade war will increasingly hurt corporate earnings and the US economy are a key reason why USA stock prices have been sinking this fall.

Chinese Ministry of Foreign Affairs spokesman Geng Shuang (耿爽) yesterday said that the Chinese and United States presidents instructed their economic teams to work toward removing all tariffs.

Both of these issues have implications for the trade war.

They have offered to alter details but reject pressure to discard blueprints such as "Made in China 2025", which calls for state-led creation of Chinese champions in robotics and other fields.

The weekend agreement indicates "dialogue will intensify", but China will need to "agree to very substantial measures" to reach an agreement, said Rajiv Biswas of IHS Markit in a report.

One of China's major concerns is USA interference in areas it considers "internal" matters.

The US and China have been embroiled in a trade war this year which has seen the US hit China with tariffs on $250bn (£195.9bn) worth of goods since July, and China retaliate with duties on some $110bn of US goods over the same period.

Speaking to reporters aboard Air Force One on Saturday, Trump said, "It's an incredible deal".

However, Qualcomm said in a statement that it considers the matter closed. On Friday, on the sidelines of the G-20 summit in Argentina, he and his Mexican and Canadian counterparts signed an agreement that, if approved by Congress, would replace the North American Free Trade Agreement.

The agreement "is not a ceasefire, it's just a de-escalation".

"My meeting in Argentina with President Xi of China was an extraordinary one".

"Only with cooperation between us can we serve the interest of both peace and prosperity", Xi said.

While Washington touted the immediate increase in Chinese purchases of United States agricultural products, Beijing's statement was much more open, with no reference to immediate or agricultural products.

The two leaders 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".

Washington and Beijing said they will try to achieve a permanent deal within the next 90 days, however the US still has significant leverage, stating that if a formal deal can't be reached then it will hike tariffs from 10 percent to 25 percent, which could roil global stock markets, stagnate global economic growth, dampen oil demand growth and possibly lead to a recession across the globe, particularly in emerging economies.

The White House said 90 days of truce was agreed upon by Washington and Beijing to settle such differences, adding that if no deal is reached, tariff rates will be raised to 25 percent as previously planned.

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