Wall Street boosted by optimism over US-China trade talks

Gladys Abbott
January 12, 2019

The talks come after US President Donald Trump and Chinese leader Xi Jinping met and agreed to hold off on more tariffs for 90 days, on the sidelines of the G-20 summit in Argentina last month. That includes giving specific dates for making purchases, and making assurances that Beijing won't hinder USA companies from gaining access to China's market.

Negotiators from both the US and China expressed optimism after mid-level talks wrapped in Beijing this week, boosting sentiment across global markets.

Trade tensions between the world's two largest economies escalated a year ago, putting global stock markets on edge.

Some degree of optimism followed a U.S. trade delegation home from Beijing on Wednesday, after the most comprehensive trade negotiations held yet between the world's two largest economies since a tit-for-tat tariff battle ensued previous year.

"I don't think the USA will easily remove tariffs that have been imposed on Chinese goods".

Washington has called on Beijing to make structural reforms that address state-sponsored intellectual-property theft, discriminatory policies that favor domestic firms over foreign ones, and other unfair trade practices.

Trade discussions between the United States and China spanned a wide range of matters, including "structural issues" that the Americans have long complained about, statements from both sides revealed. For its part, China said the meetings were " extensive, in-depth and detailed", and laid the foundation for a resolution of the conflict.

WALL STREET: Stocks rose for the fourth consecutive session after American and Chinese negotiators extended their talks to a third day. She said Wednesday that the timing was unclear but the two sides "are moving towards a more balanced and reciprocal trade agreement with China". This meeting was previously unscheduled, signaling the two sides could be coming together on key issues.

"We urge the United States to immediately cease this kind of provocation", he said, adding that China had sent military ships and aircraft to identify and warn off the ship.

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Shares extended gains in Asia on hopes for progress in resolving the tariffs battle between the US and China as talks appeared to have been extended in Beijing.

"China is determined to bring the trade war to an end", The Economist has reported.

China has also cut tariffs on U.S. cars, dialled back on an industrial development plan known as "Made in China 2025", and told its state refiners to buy more USA oil.

"These issues are much more hard to solve immediately but are, frankly, much more compelling to US companies", said Jake Parker, vice president for China operations of the U.S.

Companies in both countries are feeling pain from the effects of the tariffs.

Almost halfway into the 90-day truce, there have been few concrete details on any progress made.

The U.S. delegation was led by Deputy U.S. Trade Representative Jeffrey Gerrish and accompanied by senior officials from the White House, U.S. Trade Representative (USTR), and the U.S. Departments of Agriculture, Commerce, Energy, and Treasury, according to the USTR.

USA companies also want action on Chinese policies they complain improperly favor local companies.

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