Trump says U.S. is having tremendous success with China on trade
- Author: Anthony Vega Jan 11, 2019,
Jan 11, 2019, 0:56
Trade tensions between the world's two largest economies escalated past year, putting global stock markets on edge.
It added the two countries discussed "ways to achieve fairness, reciprocity and balance in trade relations",.as well as issues related to intellectual property protection. A statement from the Office of the U.S. Trade Representative said negotiators will "report back to receive guidance on the next steps". As producers say they won't let oil stockpiles exceed normal levels, fears of a slowdown in demand is abating as trade tensions ease between the world's top-two economies.
With cooling economic growth raising the urgency for a settlement, this week's talks went ahead despite tension over the arrest of a Chinese tech executive in Canada on US charges related to possible violations of trade sanctions against Iran. But aside from some soybean purchases, there has been little sign of big-ticket acquisitions. The truce took place at the G-20 Summit in Buenos Aires, Argentina, and resulted in Trump postponing his planned tariff hike for 90 days while negotiators work towards a finalized deal. -China relationship for years.
While the U.S. Energy Information Administration reported that crude inventories shrank by 1.68 million barrels last week, the steepest drop since November, there were substantial increases in refined products such as gasoline.
Trump imposed import tariffs on hundreds of billions of dollars of Chinese goods past year and has threatened more to pressure Beijing to change its practices on issues ranging from industrial subsidies to intellectual property to hacking. While the 90-day tariff ceasefire may be extended to allow for more manoeuvring room on prickly trade issues, it is unclear if there will soon be a substantive deal or if existing tariffs are on the negotiation table, they said.
The paper said in an editorial that the dispute harms both countries and disrupts the global trade order and supply chains. Trump has given U.S. Trade Representative Lighthizer until March 1 to negotiate an accord with the Chinese on "structural changes" to Beijing's state-driven economic model.
Ross told CNBC the immediate trade issues would be easiest to tackle while enforcement issues and structural reforms, such as intellectual property rights and market access, would be more challenging to resolve.
The U.S. -China trade war began when Trump imposed a 25 percent tariff on $50 billion worth of Chinese goods last July and August.
"If you want to gauge how investors are viewing the trade talks, just watch tech, and semiconductors in particular", said Jack Ablin, chief investment officer at Cresset Wealth Advisors in Chicago.
That added to advances since last week in equity markets around the world, following a strong US employment report and comments from the Federal Reserve chief that calmed worries USA interest rate hikes would hurt growth.
Stocks rallied globally on the positive tone of the talks and optimism that Washington and Beijing can avert an all-out trade war.
In another sign of subsiding worries about the U.S. economic outlook, Fed funds rate futures show traders are now pricing in a small chance of a rate hike in 2019, a change from late last week when futures markets had priced in a cut by the end of the year. Apple Inc rattled global markets last week when it cut its sales outlook, blaming weak demand in China, while Chinese exporters reported a thinning pipeline of orders from the United States.
The foreign ministry spokesman, Lu Kang, said the talks wrapped up Wednesday. Xi promised to fix the trade imbalance issue with the United States by starting to purchase USA agricultural products. He added: "It's been a good one for us".
China and the United States held a talk at the vice-ministerial level on economic and trade issues in Beijing from Monday to Wednesday, said a statement from the Ministry of Commerce.