China and USA declare temporary truce after Trump, Xi summit

Fredrick Soto
December 3, 2018

What this means in terms of the Trump-Xi meeting at the G20 is that it's going to be apparent fairly quickly if China is going to switch tactics and resume buying US commodities.

He called on both China and the United States to handle the development of bilateral relations from an overall perspective and push for long-term, healthy and stable development of bilateral ties.

US-China trade divisions meant an Asian economic summit earlier this month was unable to agree a formal leaders' statement for the first time in its history.

"We didn't really give up anything to China".

Similar to crude, no US cargoes of LNG - which is subject to Chinese tariffs - arrived in China in October, although two were discharged in November. -China trade dispute. However, 90 days is a short period for negotiations on complicated structural issues, and some agreement will be hard to verify beforehand.

Some lawmakers have criticized Trump for his tough trade talk and actions toward China, including his tariffs and threats of imposing up to $256 billion more in such sanctions if no deal could be reached.

But they say the deal must do more to protect US workers from low-wage Mexican competition.

And for the Chinese president, "growth is slowing and I think there's an interest in trying to get this behind them", Goodman said of the tariff battle with Trump.

Both of these issues have implications for the trade war.

The agreement so far lacks detail, but allows the US and China an additional 90 days to negotiate an agreement.

The weekend agreement indicates "dialogue will intensify", but China will need to "agree to very substantial measures" to reach an agreement, said Rajiv Biswas of IHS Markit in a report.

The White House said China was "open to approving the previously unapproved" deal for USA company Qualcomm Inc to acquire Netherlands-based NXP Semiconductors "should it again be presented". The downside for China is that it also needs US sourced LNG as its insatiable gas demand expands amid Beijing's mandate that gas make up at least 10 percent of its power generation energy mix by 2020, with further earmarks set for 2030. The U.S. spent 716 Billion Dollars this year.

Qualcomm announced it was dropping plans to proceed with the deal after it failed to receive Chinese government approval.

"If it happens it goes down as one of the largest deals ever made", Trump told reporters on Air Force One during the return trip from the G20 summit in Buenos Aires. He said there were three sites under consideration, but he declined to name them. On Friday, on the sidelines of the G-20 summit in Argentina, he and his Mexican and Canadian counterparts signed an agreement that, if approved by Congress, would replace the North American Free Trade Agreement. He said lawmakers can choose between the replacement, the United States-Mexico-Canada Agreement, or nothing.

It was the first meeting between Xi and Trump since the USA president paid a state visit to China in November past year.

Very importantly, President Xi, in a wonderful humanitarian gesture, has agreed to designate Fentanyl as a Controlled Substance, meaning that people selling Fentanyl to the United States will be subject to China's maximum penalty under the law.

If no broader deal is reached within 90 days, the USA said it would hike tariffs on $200bn of Chinese goods from 10 to 25 percent.

The statement said that China agreed to start purchasing agricultural products from USA farmers "immediately". They intend to start purchasing agricultural product immediately. But as trade lawyer and Cato Institute scholar Scott Lincicome points out, "with no joint statement and list of actual/concrete deliverables, how will both sides (and the public) measure success or failure in 90 days?"

The U.S. side, he added, is ready to increase cooperation with China through consultations and actively seek mutually beneficial solutions to their problems.

President Trump expressed his friendship and respect for Chairman Kim.

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