China to 'immediately' implement U.S. trade truce measures

Marcus Newton
December 7, 2018

Global stocks slumped Tuesday as investors grew skeptical that the USA and China made a meaningful breakthrough Saturday. "Chinese, '" Trump tweeted, citing a Bloomberg news report on the subject. "It remains unclear for the market whether the trade war will escalate or deescalate from here".

But the U.S. leader kept up the threats as he warned that he was ready to make China "pay for the privilege" of selling in the United States market if the negotiations fail.

Talks during the 90 day period during which President Donald Trump has agreed to suspend US tariff hikes will start by focusing on farm goods, energy and automobiles, said a Ministry of Commerce spokesman, Gao Feng.

Details regarding China's pledge to buy more American products - one that it has made before - remain scant.

After some confusion Monday about who would head the talks with China, Trump suggested Tuesday that U.S. Trade Representative Robert Lighthizer would take the lead, "working closely with" Treasury Secretary Steven Mnuchin, economic advisor Larry Kudlow, Commerce Secretary Wilbur Ross and trade advisor Peter Navarro.

What "structural changes" is China willing to make?

But the mood has quickly soured on scepticism that the two sides will be able to reach a substantive deal on a host of highly divisive issues within the short negotiating period agreed. That's a narrow window in which to solve some of their thorniest differences. But any such pact is not a guarantee, given deep divisions that remain between the countries and the administration's insistence that China end its practice of pressuring USA companies to hand over valuable technology and trade secrets.

What's more, it only took a few days before Trump he began threatening Beijing again. Not only are there not going to be additional tariffs at the beginning of 2019, but China has agreed to purchase a substantial amount of US products from a variety of industries in order to equalize the trade imbalance.

What are the next steps in the talks?

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As I noted yesterday, the agreement between Trump and Chinese President Xi Jinping seemed to be little more than a series of vague goals with no concrete timeline or definitive way to measure progress.

Not what the saying, and that's not a good sign.

Trump "shared his vision of all automakers producing in the United States and creating a more friendly business environment", the White House said in a statement afterward.

President Donald Trump met Tuesday with executives from Germany's big automakers amid U.S.

USA promises are already unraveling.

The commerce ministry's remarks came days after US President Donald Trump and Chinese leader Xi Jinping agreed to give negotiators 90 days to resolve their trade spat.

How likely is this to end the trade war? 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.

One reason for optimism: Trump has now stamped his personal brand on U.S. On a deeper level, however, the truce is between competing factions within the Trump administration that disagree fundamentally over how to pursue relations with China.

Yet, Kudlow said later that there was no "specific agreement" regarding auto trade, though he added, "We expect those tariffs to go to zero".

Other reports by MaliBehiribAe

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