'Back on track': Trump, Xi seal trade war truce

Trump announced today that the tariffs he has threatened to impose on billions of dollars worth of additional Chinese goods are on hold "for the time being".

President Donald Trump agreed Saturday to lift some restrictions against USA companies selling high-tech gear to Chinese telecom giant Huawei, says a report.

At a subsequent meeting with Turkey's president, Trump said the sit-down with Xi went "probably even better than expected". Trump suggested that his administration will review the company's status on Commerce's so-called Entity List and cleared the way for USA firms to sell it some components.

Trump spoke to reporters at the end of his Osaka summit, hours after saying new talks with China were 'back on track'.

Trump announced on Saturday that he was holding fire on his threat to add new duties to a further US$300 billion in imports from China, which has led to a public revolt by U.S. businesses making everything from video game consoles to tennis balls.

Xi said at the start of the meeting that he wanted to take China-US relations forward on the basis of "coordination, cooperation and stability".

Beijing also wants the U.S.to lift all punitive tariffs and drop efforts to get China to buy even more USA exports than Beijing said it would when the two leaders last met in December, the WSJ said.

China, the world's top soybean importer, is on pace for its smallest USA soybean imports in 11 years as importers there have increased purchases from South America, mainly from top exporter Brazil.

This is a developing story.

"The trade relations between China and the United States are hard, they are contributing to the slowdown of the global economy", European Commission president Jean-Claude Juncker told a news conference. "If we make a deal, it will be a very historic event".

China has countered with tariffs on $110 billion in American goods, focusing on agricultural products in a direct and painful shot at Trump supporters in the USA farm belt.

US microchip makers also applauded the move.

It's a surprising turnaround, and it is coming weeks after the Trump administration labeled the tech behemoth a National security threat.

The Trump administration says China is trying to cheat its way to dominance in the cutting-edge technologies of the future such as artificial intelligence and quantum computing.

During the press conference, Trump said he was in no rush to reach a deal with China. "We are totally open to it".

Trade talks between the United States and China stalled in May after Beijing backtracked on commitments to address structural issues, such as intellectual property theft, government subsidies to boost domestic sectors, and forced technology transfers.

Mr Xi told Mr Trump he was ready to exchange views on fundamental issues and stressed the need for dialogue over confrontation. The leaders of the world's largest economies arrive in Osaka from Thursday for the fourteenth meeting of Group of Twenty (G20).

"An agreement that retains most of the tariffs and simply restarts talks is one thing", said Chad Bown, who served on President Barack Obama's council of economic advisers and is now at the Peterson Institute for International Economics.

  • Anthony Vega