Trump pulls back from brink of trade war with China


Larry Kudlow, President Donald Trump's top economic adviser, said on the weekend that similar measures would be needed before the USA would consider a reprieve.

"The president and Secretary Mnuchin, what they are doing sends a unsafe signal to businesses around the world that the United States is willing to forgive sanction violations or reduce penalties", Schumer said.

Among all the trade fights that President Donald Trump has picked, his hand against China is the strongest.

He added that on Friday he spoke directly to Trump for half an hour about the matter, and also to other administration officials.

The Treasury has considered invoking the International Emergency Economic Powers Act, used extensively after the 9/11 attacks in 2001, to limit Chinese investments in USA technology companies.

A vague statement the two countries released said next to nothing about the issue at the heart of the dispute between Washington and Beijing: The hardball tactics China uses to challenge US technological supremacy.

The second person said China may also eliminate tariffs on USA agriculture products it assessed in response to US steel duties as a part of the deal, and that ZTE could still be forced to replace its corporate leadership, among other penalties. Last week, Trump posted a tweet saying he was working with Chinese President Xi Jinping to help ZTE "get back into business, fast".

But Frisbie said he wanted to see further progress in addressing US businesses' complaints about how they are treated in China. He suggested that US farms could double their sales to China if given broader access to its market.

Trump pulls back from brink of trade war with China

Over the weekend, the two sides pledged to keep talking about how China could import more energy and agricultural commodities from the United States so as to narrow the $335 billion annual USA goods and services trade deficit with China, although details and a firm timeline were thin.

They pledged to further strengthen cooperation with China in such areas as trade, investment, green development and people-to-people exchanges at the local level, so as to make positive contribution to bilateral ties.

He added: "Fair Trade, plus, with China will happen!" The meeting between the United States and Chinese delegations agreed that China would increase its imports of United States agricultural and energy products.

U.S. Trade Rep. Robert Lighthizer issued a sharp statement: "Getting China to open its market to more U.S. exports is significant, but the far more important issues revolve around forced technology transfers, cyber theft and the protection of our innovation". He said there is no deal yet to reduce US penalties that have caused the company to suspend its business, but that "you're really hurting American companies also" by shutting down ZTE and the review is "a favor" to Xi. "If we are desperate for a deal China is going to kill us in negotiations", he tweeted.

Shares of AK Steel (AKS.N) fell 5.1 percent and U.S. Steel (X.N) was down 3.8 percent following the weekend trade announcement.

But Jacob Parker, vice president of China operations at the U.S.

"As trade tensions settle and peak growth/earnings anxieties subside, the clouds are lifting for stocks", JPMorgan analysts said in a note. The dollar also gained against a basket of currencies.

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