Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

China Wants More Talks Before Signing Trump’s ‘Phase One’ Deal

Published 10/14/2019, 05:30 AM
Updated 10/14/2019, 06:35 AM
© Reuters.  China Wants More Talks Before Signing Trump’s ‘Phase One’ Deal

© Reuters. China Wants More Talks Before Signing Trump’s ‘Phase One’ Deal

(Bloomberg) -- China wants further talks as soon as the end of October to hammer out the details of the “phase one” trade deal touted by Donald Trump before Xi Jinping agrees to sign it, according to people familiar with the matter.

Beijing may send a delegation led by Vice Premier Liu He, China’s top negotiator, to finalize a written deal that could be signed by the presidents at the Asia-Pacific Economic Cooperation summit next month in Chile, one of the people said. Another person said China wants Trump to also scrap a planned tariff hike in December in addition to the hike scheduled for this week, something the administration hasn’t yet endorsed. The people asked not to be named discussing the private negotiations.

The details of the verbal agreement reached in Washington last week between the two nations remain unclear. While Trump hailed an increase in agricultural purchases as “the greatest and biggest deal ever made for our Great Patriot Farmers in the history of our Country,” China’s state-run media only said the two sides “agreed to make joint efforts toward eventually reaching an agreement.”

S&P 500 futures extended losses, the Stoxx 600 fell and the yen rose as investor pessimism on the deal grew.

China’s Ministry of Commerce did not immediately respond to a request for comment on further talks. Geng Shuang, a foreign ministry spokesman, reiterated on Monday that both sides had made progress and said he hoped “the U.S. will work with China and meet each other halfway.”

Investors have struggled to determine whether the U.S. and China reached a breakthrough in an 18-month trade war, with global stocks mixed on Monday. Worse-than-expected September trade figures in China underscored the growing pressure on both Trump and Xi to reach a deal to avert a wider slowdown in the global economy.

China has become increasingly wary of any statements from Trump. Trust between the two sides suffered a big blow in May 2018, when Trump put a stop to a deal for China to buy more energy and agricultural goods to narrow the trade deficit. The U.S. president further sowed distrust in August when he claimed that Chinese officials had called and requested to restart trade talks.

For Xi, it’s seen as politically unfeasible to accept a final deal that doesn’t remove the punitive tariffs altogether. Nationalists in the Communist Party have pressured him to avoid signing an “unequal treaty” reminiscent of those China signed with colonial powers.

“The U.S. must concede on its December tariff threat if they want sign a deal during APEC summit, otherwise it would be a humiliating treaty for China,” said Huo Jianguo, a former Chinese commerce ministry official who is now vice chairman of the China Society For World Trade Organization Studies. “The U.S. has definitely shown some good gestures but we shouldn’t exclude the possibility of another flip-flop.”

Latest comments

I told you guys ... All China want is a fare man to man deal. A deal needs to benefit both sides or it is not a deal. The chinese people will always keep their words as they have Confucius value, which honor trusts, respect, and honesty. If Trump keeps flipping around and making it like he China is the underdog, then no China does not need to sign the deal.
China will bend the knee . No choice
Confucius say ... Steve and Bishop is a Trump supportor wearing MAGA hats.
Mao will be really angry that Confucius value still exists!
Can’t trust communist China and Trump keeps falling for it.
Did you buy anything that is made in China? IPhone, TV, clothing, etc...
Trump your a joke, keep getting stringed along by the chinese like a puppet.
delayed round of tariffs by pretending to agree now backtracking. Jam the tariffs down their throats and delist their companies from American Trading markets. If they want to play games then make them pay for it.
Wait for tweet
No surprise there.  They know Trump is vulnerable and can get him to lift all tarrifs without giving up much.
its  just an Illusion ...
Past and future is difference
Spinning the news that was positive on Friday to a negative on Monday. Same news different day. Let it ride.
we are in a new COLD WAR much worse than the one we had with the soviets. . . and will last for decades . . . the markets are going to figure that out soon
China cannot afford this trade war. despite all the posturing, the survival of the communist party rests on giving it's citizens growth. but for its own profit it extensively urbanized it's population with vast population part of the factory industry producing for the external market. while us it would hurt Farmers but not cause survival worries as US Farmers have long moved to industrious agriculture. but for China this means 100s of millions of people without job or anything to fall back on. given they are an aging population due to the one child policy, it will threaten there party
exactly
whats funny is how many people comment on the bandwagon of US policy. like businesses didnt have a say in it ever before and create the situation we face today from simply wanting to do as much business as possible and run up the numbers. dont look to me for any pitty. get your heads out the clouds.
pretty soon the ALGOs and computers will start dumping the markets on trump's LIEs. AKA good news
Delay tactics?
Trump is begging for a deal. China is handing him his arce.
At least President Trump for standing up for our country not like the last 45 years of presidents. No other president can say this, they stood up to China. Took the short-term pain for long-term gain
Also, as with any other agreement or deal, it is perfectly normal to talk more before they draft a final version between the two parties. Even friday they said that there will be more talk and minor adjustments along the way until the APEC meeting.
agree again...that's why they have "minutes of the meeting"
President Crush, the zero credibility guy. And all media too once you all rush to post his lies
gap down is for buying
This is a repeat of the last draft. Liu agrees and goes home and gets shot down by mini mao me’s. The chinese dont want another 5% tariff and want to placate organ harvesting die hards. They are buying time.
Buying Pork is not concession at all, because They want buy that because they need that. Serious animal disease is spreaded in China, vietnam, north korea, south korea......so they need to eat Pork. It is Not concession. just for their own needs.
US pork has surplus and Chinese has demand, that is a good deal and what is wrong with you Korean?
oh so trump LIED again. . . what else is new
China has had such a great trade deal for so long (30 years) that they’ve forgotten that negotiations are give nad take, not just take.
Well, there’s a history lesson for ya!
Actually they made No deal. so they invented a word. "Let's call it phase one"......US is still choking chinese USD liquidity with 25 percent tariffs, China just needed Pork because of disaster *****disease in china........US want total surrender of china, china will not want such surrender. Currency and Capital market open. Because US want to control China with financial method.
Oscar award
Chineses style !
It’s CCP style, Chinese people have no say on anything
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.