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China confident on USA trade pact, Trump cites Xi's 'strong signals'

07 December 2018

"US President Donald Trump on December 5 said he believed Chinese President Xi Jinping was being honest at their meeting on trade and that Beijing had been sending "strong signals" since then".

"Not to sound naive or anything, but I believe President Xi meant every word of what he said at our long and hopefully historic meeting", Trump said on Twitter Wednesday.

President Trump said Wednesday that China is confirming his announcement of a pause in its trade war with the U.S.

Asked about Trump's statement that Beijing would cancel tariff hikes on US -made autos, Gao referred reporters to the Cabinet's tax commission.

President Xi Jinping 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. Wall Street was initially encouraged by Trump's deal with Xi in which both sides agreed to a 90-day truce in the U.S. Even before the Buenos Aires talks, Trump last month had stated incorrectly that the Chinese government "got rid of" the Made-in-China 2025 programme of subsidised technology development in response to his objections.

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Trade experts have said 90 days is scant time for resolving sprawling conflicts over technology, state industries and other issues that have bedeviled U.S.

Zetsche said it is "impossible" to build all vehicles sold in the United States because of small volumes of small luxury cars.

The tone of Trump's latest tweets show an apparent shift from 24 hours earlier, when he was unreservedly triumphant, saying relations with China had taken a "BIG leap forward".

The statement comes after Chinese President Xi Jinping and US President Donald Trump met in Argentina following the G20 summit on 1 December.

Hopes were buoyed when Trump told reporters in Argentina that he had reached an "incredible" deal with Xi, the president following that up with a tweet saying, "China has agreed to reduce and remove tariffs on cars coming into China from the U.S. now the tariff is 40%". Ben Sasse, a Nebraska Republican and opponent of Trump's tariff policy, criticized the president's tweets on that basis.

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"President Xi and I want this deal to happen, and it probably will".

In his tweet, Trump wrote that China was supposed to start buying American "agricultural products and more" immediately.

At the start of the administration, Trump failed on that front when he pulled the United States out of the Trans-Pacific Partnership - a pact joining 12 major trading economies along the Pacific Rim in a trade agreement created to push back against China's mercantilist behavior.

"They don't want to look like they've gone across the Pacific offering concessions to placate Trump, and then a few weeks later escalation resumes", he said.

It was the first official confirmation from China that there is a 90-day window for the talks.

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The two sides will also discuss intellectual property protection, technology cooperation, market access and balanced trade, and "work hard to reach a consensus", Gao said. Cheap imports from China of the drug, which is significantly more potent than heroin, is considered a contributing factor in the ongoing drug epidemic in the United States.

China confident on USA trade pact, Trump cites Xi's 'strong signals'