China trade vow after Trump talks helps settle financial markets

U.S. President Donald Trump and Chinese President Xi Jinping meet after the G20 in Buenos Aires 1/12/2018

China expressed confidence on Wednesday that it can reach a trade deal with the United States, a sentiment echoed by U.S. President Donald Trump a day after he warned of more tariffs if the two sides could not resolve their differences.

"We hope the two working teams from both sides can, based on the consensus reached between the two countries' leaders, strengthen consultations, and reach a mutually beneficial agreement soon", Foreign Ministry spokesman Geng Shuang told reporters.

On Monday, Kudlow said there was an "assumption" that China would eliminate auto tariffs, not a specific agreement.

Those 10 percent tariffs were scheduled to ratchet up to 25 percent on January 1 if the US and China failed to reach an agreement to at least postpone that move. 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'. "China does not want Tariffs!"

Both sides will immediately hold talks on structural changes concerning forced technology transfers made by Chinese firms on US companies, intellectual property rights protection, non-tariff trade barriers, cyber intrusion concerns, cyber theft and agricultural, the White House added.

The U.S. had a $335.4 billion trade deficit with China in 2017.

In a Sunday editorial in Chinese, the Global Times noted that the agreement struck between Presidents Xi Jinping and Donald Trump in Argentina on Saturday was temporary.

America has probably already missed its best chance to sell soybeans to China, according to Cargill, one of the world's biggest agriculture commodity traders.

It did not give further details but it crucially did not contradict the USA president's remarks that China would buy more goods from the United States to help close their trade gap and structural changes to intellectual property protection.

One Chinese official said officials were "waiting for the leaders to return" before publicising details. China's government has been slow to formulate its response to the summit as senior officials were still out of the country with Xi, Bloomberg News reported.

"We are either going to have a REAL DEAL with China, or no deal at all - at which point we will be charging major Tariffs against Chinese product being shipped into the United States", Trump wrote on Twitter.

"It will be a win-win situation if a deal is realized". This article is strictly for informational purposes only. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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