China promises prompt action on U.S. trade pact

Volkswagen AG CEO Herbert Diess arrives for a meeting between senior Trump administration officials and top executives of Volkswagen and Dai

But he added, "if that's real" - raising some doubt - it would close the USA trade deficit with China, and 'we have to have a negotiated agreement and have this on paper'.

Chinese officials hailed on Wednesday a "very successful" trade meeting with the US, just days after President Trump claimed there had been a major breakthrough in negotiations that ended in a new trade deal.

He added that Xi has sought to control the Indo-Pacific region, where the USA previously had significance.

U.S. President Donald Trump and China's leader Xi Jinping agreed on a temporary truce to halt their long-standing trade war at the G20 summit last weekend.

"Officials now face the hard task of fleshing out a deal that is acceptable to the Chinese but also involves significant enough concessions not to be torpedoed by the China hawks in the Trump administration", Capital Economics said in a note this week, adding that higher tariffs could simply be delayed.

While it remains to be seen if Washington and Beijing can iron out their trade differences, it would be beneficial for both sides' energy sectors to at least reach some sort of deal that would allow the free trade of energy between the two super powers.

Earlier this year Trump imposed an import tax of 25 percent on $50 billion in Chinese products, then hit an additional $200 billion worth of goods with 10 percent tariffs. 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.

President Donald Trump on Wednesday scrambled to reverse a stock market plunge over fears his China trade deal won't happen, arguing Beijing was sending "very strong signals" and that he believed President Xi Jingping's promises. -China relations "will remain contentious".

Officials from the United States and a number of other major economies have often criticized China for its slow approach to negotiations and not following through on commitments. Xi and his most senior officials, including the commerce minister and the country's two top diplomats, are in Portugal, and due back in China on Thursday.

China's ministry of foreign affairs said Monday the Chinese and US president had agreed to work toward removing all tariffs.

In a brief statement, the ministry said China would try to work quickly to implement specific items already agreed upon, as both sides "actively promote the work of negotiations within 90 days in accordance with a clear timetable and road map". China's government has yet to issue official comment on those details.

Related:

Comments

Latest news

Arsenal players "reminded of their responsibilities" after Hippy Crack incident
Arsenal lost their first two matches of the season against City and Chelsea but have not been beaten since and are now on a run of 20 games without suffering a defeat.

Microsoft's Going to Rebuild Edge With Google's Chromium
The "new" browser will still be called Edge, and will still use the blue E but that's about all that's left from the old Edge. Google is the most prominent user of the Chromium open source code, which is the base of the Chrome browser.

First 'Game Of Thrones' Season 8 Tease Officially Released
Game of Thrones season 7 ended with the Night King breaking down The Wall by melting it with the dragon's fire. Most notably, the lion of Lannister burns up and eventually the ice and fire erupt in the middle of the table.

Buzzcocks singer Pete Shelley dies aged 63
He founded Buzzcocks with Howard Devoto after they met at what is now the University of Bolton. He helped us so much at the start of our career out of a sheer love for all things punk.

Kate and Meghan attend separate events amid 'feud' rumours
Over the last couple of weeks, reports have suggested that there is some animosity between Meghan Markle and Kate Middleton . The memorial fund "aims to fight poverty in Uganda through education".

Other news