China Temporary Trade Truce

G20: BRICS slam protectionism as China-US trade war dominate summit

G20: BRICS slam protectionism as China-US trade war dominate summit

Pledging to crack down Fentanyl is considered a low-hanging fruit in the Trump-Xi meeting, as China has previously pledged to work with the U.S. to stop opioid imports. President Trump imposed 10 percent tariffs on $200 billion worth of Chinese exports to the United States.

Late Sunday, Trump tweeted that "China has agreed to reduce and remove tariffs on cars coming into China from the U.S. now the tariff is 40 percent".

The president also touted his personal relationship with Chinese President Xi, suggesting that it would be very productive in the future.

According to the U.S. statement, part of the deal to halt stricter tariffs was that the Chinese side would make unspecified but "very substantial" purchases of USA goods immediately.

When Beijing implemented the 40 percent rate for USA imports in the summer, it also dropped its import tariff rate on vehicles from the rest of the world to 15 percent.

A White House statement said both sides would immediately begin talks over a wide range of issues, including forced technology transfers, intellectual property protection, non-tariff barriers and cyber intrusions.

The United States agreed not to raise tariffs further on January 1, while China agreed to buy more agricultural products from USA farmers immediately. Instead, those tariffs will remain in place but at the current, lower rate.

Chinese news outlets also claimed both sides plan to eliminate all tariffs, which doesn't appear in the USA statement. Some economists said Xi might be ready to negotiate in earnest.

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Beijing has offered limited details regarding the truce deal made during the Trump-Xi meeting in Buenos Aires, a move to downplay China's compromises in the negotiation and to save face in front of its own people. Xi revived promises to narrow China's multibillion-dollar trade surplus with the United States by purchasing more American exports. It's more of a trade-war time out.

"It's an incredible deal", Trump told reporters aboard Air Force One on the flight home to Washington, adding it would have an "incredibly positive impact" on American farmers.

The US will need to see "something concrete" from China on trade in the next 90 days to build a real agreement, Treasury Secretary Steven Mnuchin said Monday (Dec 3).

Business groups have welcomed those changes but say they don't address more important complaints about a thicket of rules limiting access to China's finance, logistics and other industries. "Ninety days is very little time to fix these perennial issues".

The outcome gives both sides enough to boast of a win without resolving the fundamental differences between them.

That's surely good news, and it's the first indication since the U.S. "China relations that both sides claim victory", said Michael Pillsbury, a senior fellow at the Hudson Institute and a defense official under presidents including Ronald Reagan and George W. Bush.

"This is probably the best case scenario that markets were hoping for", Rakuten Securities Australia, a brokerage based in Sydney, stated in a note.

Through a translator, Mr. Xi said that "only with cooperation between us can we serve the interest of global peace and prosperity and that is why I look forward to this meeting". Mr. Trump had warned that a disappointing outcome could prompt more USA tariffs.

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