Trump says China's Xi wants a deal to end escalating trade war

Gladys Abbott
November 4, 2018

Bloomberg reported on Monday that the United States is preparing to announce tariffs on all remaining Chinese imports by early December if talks next month between presidents Donald Trump and Xi Jinping fail to ease the trade war.

Given the speed of Trump's turnaround, Boltansky said he also believed the sudden surge in Trump's optimism was possibly a political play.

"Given his [Trump's] poor track record on policy credibility in the past year, we'd better not hold out too much hope", Lu said. They very much want to make a deal. Beijing would be unwilling to risk jeopardising its improving relations with Pyongyang and as a result had "very few tools to work with", he said.

Trump said the American economy is doing well and he has been receiving congratulatory message from across the world.

Trump said trade talks were "moving along nicely" and that meetings were "being scheduled" at the G20 summit planned in Buenos Aires at the end of this month.

The president's remarks helped United States stocks to trim their losses on a day that started with market optimism over a Bloomberg report quoting unnamed sources as saying that Trump had ordered his cabinet to draw up terms for a China trade deal.

Trump administration officials have said US-China trade talks can not resume until Beijing outlines specific actions it would take to meet US demands for sweeping changes to policies on technology transfers, industrial subsidies and market access.

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The world's two biggest economies are locked in a dispute over USA complaints that China is using predatory tactics in a drive to supplant American technological dominance.

US President Donald Trump has exuded confidence of having a fair trade deal with China, warning further tariffs might follow it did not materialise.

His comments came a day after US Secretary of State Mike Pompeo said China should "behave like a normal nation on commerce and with respect to the rules of global law". This would also be seen as a major threat to the United States dollars rally, meaning that this is the potential card to help encourage a jump in other currencies around the world, especially those in emerging markets.

"Just had a long and very good conversation with President Xi Jinping of China". He also accused China of unfair commercial practices. Xi said later to be willing to meet Trump.

"The Trump administration should not miscalculate China's tolerance for what they perceive as bullying tactics", he said. The United States has targeted $250 billion in Chinese products, and Beijing has lashed back by slapping tariffs on $110 million worth of US goods. According to Trump, a lot of progress has already been made to help resolve the dispute between the two superpowers.

"We will see what happens at the G20 and with Liu's talks, but I am not optimistic that anything momentous will come out of this", Zimmerman said.

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