Breaking News
0

U.S., China agree on trade war ceasefire after Trump, Xi summit

EconomyDec 02, 2018 01:23PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. G20 leaders summit in Buenos Aires

By Roberta Rampton and Michael Martina

BUENOS AIRES (Reuters) - China and the United States agreed to a ceasefire in their bitter trade war on Saturday after high-stakes talks in Argentina between U.S. President Donald Trump and Chinese President Xi Jinping, including no escalated tariffs on Jan. 1.

Trump will leave tariffs on $200 billion worth of Chinese imports at 10 percent at the beginning of the new year, agreeing to not raise them to 25 percent "at this time", the White House said in a statement.

"China will agree to purchase a not yet agreed upon, but very substantial, amount of agricultural, energy, industrial, and other product from the United States to reduce the trade imbalance between our two countries," it said.

"China has agreed to start purchasing agricultural product from our farmers immediately."

The two leaders also agreed to immediately start talks on structural changes with respect to forced technology transfers, intellectual property protection, non-tariff barriers, cyber intrusions and cyber theft, services and agriculture, the White House said.

Both countries agreed they will try to have this "transaction" completed within the next 90 days, but if this does not happen then the 10 percent tariffs will be raised to 25 percent, it added.

The Chinese government's top diplomat, State Councillor Wang Yi, said the negotiations were conducted in a "friendly and candid atmosphere".

"The two presidents agreed that the two sides can and must get bilateral relations right," Wang told reporters, adding they agreed to further exchanges at appropriate times. 

"Discussion on economic and trade issues was very positive and constructive. The two heads of state reached consensus to halt the mutual increase of new tariffs," Wang said. 

"China is willing to increase imports in accordance with the needs of its domestic market and the people's needs, including marketable products from the United States, to gradually ease the imbalance in two-way trade."

"The two sides agreed to mutually open their markets, and as China advances a new round of reforms, the United States' legitimate concerns can be progressively resolved."

The two sides would "step up negotiations" toward full elimination of all additional tariffs, Wang said.

The announcements came after Trump and Xi sat down with their aides for a working dinner at the end of a two-day gathering of world leaders in Buenos Aires, their dispute having unnerved global financial markets and weighed on the world economy.

After the 2-1/2 hour meeting, White House chief economist Larry Kudlow told reporters the talks went "very well," but offered no specifics as he boarded Air Force One headed home to Washington with Trump.

China's goal was to persuade Trump to abandon plans to raise tariffs on $200 billion of Chinese goods to 25 percent in January, from 10 percent at present. Trump had threatened to do that, and possibly add tariffs on $267 billion of imports, if there was no progress in the talks.

With the United States and China clashing over commerce, financial markets will take their lead from the results of the talks, widely seen as the most important meeting of U.S. and Chinese leaders in years.

The encounter came shortly after the Group of 20 industrialized nations backed an overhaul of the World Trade Organization (WTO), which regulates international trade disputes, marking a victory for Trump, a sharp critic of the organization.

Trump told Xi at the start of their meeting he hoped they would achieve "something great" on trade for both countries. He struck a positive note as he sat across from Xi, despite the U.S. president's earlier threats to impose new tariffs on Chinese imports as early as the next year.

He suggested that the "incredible relationship" he and Xi had established would be "the very primary reason" they could make progress on trade.

Xi told Trump that only through cooperation could the United States and China serve the interest of peace and prosperity. Washington and Beijing have also increasingly been at odds over security in the Asia-Pacific region.

At the same time, Trump again raised with Xi his concern about the synthetic opioid fentanyl being sent from China to the United States, urging the Chinese leader to place it in a "restricted category" of drugs that would criminalize it.

The White House said Xi, "in a wonderful humanitarian gesture", had agreed to designate fentanyl a controlled substance.

Xi also said that he was open to approving the previously unapproved Qualcomm-NXP deal should it again be presented to him, the White House added.

"This was an amazing and productive meeting with unlimited possibilities for both the United States and China. It is my great honor to be working with President Xi," Trump said in the statement.

WTO REFORMS

Earlier on Saturday, the leaders of the world's top economies called for WTO reform in their final summit statement.

Officials expressed relief that agreement on the communique was reached after negotiators worked through the night to overcome differences over language on climate change.

The final text recognized trade as an important engine of global growth but made only a passing reference to "the current trade issues" after the U.S. delegation won a battle to keep any mention of protectionism out of the statement.

Trump has long railed against China's trade surplus with the United States, and Washington accuses Beijing of not playing fairly on trade. China calls the United States protectionist and has resisted what it views as attempts to intimidate it.

The two countries are also at odds over China's extensive claims in the South China Sea and U.S. warship movements through the highly sensitive Taiwan Strait.

In addition to tariffs on Chinese goods, Trump has imposed tariffs on steel and aluminum imports into the United States this year. Numerous countries have filed litigation at the WTO to contest the levies.

The United States is unhappy with what it says is the WTO's failure to hold China to account for not opening up its economy as envisioned when China joined the body in 2001. The European Union is also pushing for sweeping changes to how the WTO operates.

G20 delegates said negotiations on the summit statement proceeded more smoothly than at a meeting of Asia-Pacific leaders two weeks ago, where disagreement on protectionism and unfair trading practices prevented a consensus.

European officials said a reference to refugees and migration - a sensitive issue for Trump's administration - was excised to ensure consensus.

On climate change, the United States once again marked its differences with the rest of the G20 by reiterating in the statement its decision to withdraw from the Paris Agreement and its commitment to using all kinds of energy sources.

The other members of the group reaffirmed their commitment to implement the Paris deal and tackle climate change.

International Monetary Fund (IMF) Managing Director Christine Lagarde said high levels of debt accumulated by emerging market nations was a pressing concern.

U.S. officials said a call by G20 leaders for the IMF and World Bank to improve monitoring debt levels was aimed at ensuring that developing economies did not become to heavily indebted to China in return for infrastructure projects.

U.S. officials have warned about China's increasing influence across swaths of the developing world, including Latin America. G20 summit host Argentina is expected to sign a series of deals with China on Sunday during a one-day state visit by Xi.

Apart from trade and climate change, Russia's seizure of Ukrainian vessels drew condemnation from other G20 members, while the presence of Crown Prince Mohammed bin Salman at the summit raised an awkward dilemma for leaders.

Saudi Arabia's de facto ruler arrived amid controversy over the killing of Saudi journalist Jamal Khashoggi, though Saudi officials have said the prince had no prior knowledge of the murder.

The leader of the OPEC heavyweight had a series of bilateral meetings at the summit, including a closely watched encounter with Russian President Vladimir Putin.

U.S., China agree on trade war ceasefire after Trump, Xi summit
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments
Suman Jutur
Suman Jutur Dec 02, 2018 2:54PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Nonsense. Trump is losing
Reply
0 4
Jonathan Snell
Jonathan Snell Dec 02, 2018 1:26PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
markets will rise monday
Reply
6 0
Jonathan Snell
Jonathan Snell Dec 02, 2018 1:26PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
this was done to save the decline in the markets for now. be aware therr still isnt a deal.
Reply
2 1
Ji Go
Ji Go Dec 02, 2018 9:57AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Say what you want about his politics and antics, but the guy will go down as one of the best deal makers to take office.
Reply
5 2
Ramon Chow
Ramon Chow Dec 02, 2018 9:35AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
additional tariffs were a bluff. this means nothing.
Reply
2 4
Nike Ajayi
Nike Ajayi Dec 02, 2018 8:31AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Trump will soon renege on this agreement. Waiting....
Reply
1 1
Chukwuma Ememe
Chukwuma Ememe Dec 02, 2018 5:10AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
The latest outcome of talks between Trump and Xi, is fruitful and represent a win-win for both Nations and the rest of the World.The World economic out look as present , cannot afford an unhealthy rivalry between the greatest economies on Earth .Thumbs -up!
Reply
3 1
Lukas Kaslu
Lukas Kaslu Dec 02, 2018 4:54AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Yuan will bullish for next week.
Reply
2 0
Tushar Mollik
Tushar Mollik Dec 02, 2018 3:35AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
For positive news if us doller strong than base metal and gold will up or down ?
Reply
0 1
kadar supermarket
kadar supermarket Dec 02, 2018 3:35AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
everything is going up on this great news dum dum
Reply
2 1
Mohsin Hussain
Mohsin Hussain Dec 02, 2018 3:35AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Down
Reply
0 1
yoshi ekaprasetya
yoshi ekaprasetya Dec 02, 2018 2:45AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Usdx will down???
Reply
1 3
Janaka Ahaus
Janaka Ahaus Dec 02, 2018 2:36AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Market will open higher Monday!!!
Reply
2 1
Talent Hungwe
Talent Hungwe Dec 02, 2018 2:36AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
meaning usd will be bullish ?
Reply
1 2
Janaka Ahaus
Janaka Ahaus Dec 02, 2018 2:36AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Talent HungweIt actually appears the market is dumping the dollar, and getting back into stocks.
Reply
1 0
Prashant Deshmukh
Prashant Deshmukh Dec 02, 2018 1:31AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Gold will benefit due to this.. Expect to reach 1280 $ in near term
Reply
5 6
Deepak Singh
Deepak Singh Dec 02, 2018 12:42AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
aud will boost
Reply
3 0
Sabbir Ahmed
Sabbir Ahmed Dec 01, 2018 11:39PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
EurUsd Down, Usd srong....
Reply
5 6
Deva Senapathi
DevaA Dec 01, 2018 11:23PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Trade war ceasffire.... what to expect for gold, oil and base metals?
Reply
2 1
Faisal Kamal
Faisal Kamal Dec 01, 2018 11:20PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Indeed a Great news!!!
Reply
5 1
Bobster Bambino
Bobster Bambino Dec 01, 2018 10:50PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Markets going to pop! Great news
Reply
7 1
Adam Rotmil
Adam Rotmil Dec 01, 2018 10:26PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
US & China called a truce for 90 days (NY Times). This is good news for markets at least for a while. Could propel a December “Santa” rally.
Reply
6 3
Dec 01, 2018 9:57PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
US markets indices will be up 4-5% on Monday morning. China Hang Seng index will skyrocket up to 10% Sunday at 8pm (US central time) as it is currently very undervalued from fear. All good news for bulls.
Reply
14 1
mark ma
mark ma Dec 01, 2018 9:40PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
No change made on tariff remained 10% is a good news after January 1st next year.
Reply
5 0
Tan Meng
Tan Meng Dec 01, 2018 9:38PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
seems like people here in this page thinks that no additional threats are good news. Think again guys
Reply
2 11
JP P
JP P Dec 01, 2018 9:38PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
because no additional tariffs is bad news?....
Reply
3 1
Ross Drennan
Ross Drennan Dec 01, 2018 9:38PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
His point is that this thing hasn’t been won. Market will likely be filled with more hot air for awhile. Lemmings are popping the corks
Reply
3 3
JP P
JP P Dec 01, 2018 9:38PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
no additional tariffs is objectively good news. the future may bring bad news but todays news is good. fact
Reply
4 1
Ross Drennan
Ross Drennan Dec 01, 2018 9:38PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Steven, with respect, yes, i do have puts on the SPY. Yes, I’m naturally fristrated. I meant no insult to bulls. The market will likely be bullish and get a boost for at least next 90 days. I will prob sell my puts at market open even, which i think is the prudent thing to do. But i remain skeptical that not only is trade war not the biggest of our issues underlying the market but also that trade war is not over. We have not yet won. Another rise, which it inevitably do so, could set us up for a bigger fall. I’m mainly focusing technically here. We’re not in an optimal position. That’s all. Calling bulls in general “lemmings” was never my intention. I’ll very likely play the reversal myself.
Reply
0 0
Dec 01, 2018 9:38PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Ross, And I want to apologize for being “gleeful” in your potential pain/loss. I am an ex ibanker now running my own hedge fund. I have been on the very wrong painful side of large market moves before ... and lost 6 digits overnight. It pained me greatly when “fellow traders” on these boards would do what I just did to you and Tan. Believe me ... what goes around comes around in the market and too people’s consequences. Note taken by me. Regarding the market action itself, yes it most likely will open strongly up (but I would not even be surprised if that was defied judging from past strange moves). Even so, this will be a quick short squeeze up to SP500 2815 level resistance I believe before a potential reversal by late Monday or Tuesday morning. You might want to hold those puts for that reversal if they are already worthless. Wish you the very best. God’s Speed.
Reply
1 0
Safe Broker
Safe Broker Dec 01, 2018 9:24PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
it was expected that no more tariff, it confirmed Now but they will continue talk n market should be positive now, it is main thing
Reply
5 0
Anil Sharma
Anil Sharma Dec 01, 2018 8:49PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Level the playing field
Reply
4 0
Rick Stewart
Rick Stewart Dec 01, 2018 8:32PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
no change.
Reply
8 2
A Le Khanh
A Le Khanh Dec 01, 2018 8:24PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
That’s good news.
Reply
5 0
Show more comments
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email