Trade Talks With China To End On March 1 Unless Extended

Trade Talks With China To End On March 1 Unless Extended

"I want to emphasise that China's laws and regulations do not contain any requirement for technology transfer and that companies' purchases of technologies and patents are pure market behaviour".

Global investors, who had feared for months that a protracted trade war could hurt economic growth, seemed to cheer the cease-fire on Monday, but USA markets slid back on Tuesday as it became clear that there were few concrete commitments that came out of the discussions so far. Failure would raise the spectre of fresh United States tariff action and potential Chinese retaliation as early as March.

Senior Chinese officials did not mention this deal in a news conference.

Stocks fell following Trump's tweetstorm with the Dow Jones industrial average declining almost 3%.

As the United States and China carry out negotiations to finalise a deal over their economic dispute, Mr Trump has warned China to negotiate a fair deal or else continue to face imposed tariffs. "But if not remember, I am a Tariff man".

Trump said he and Xi "are the only two people that can bring about massive and very positive change, on trade and far beyond, between our two great Nations. It will always be the best way to max out our economic power". Many Democrats and Republicans, as well as global leaders, have agreed with Trump's assessment, and he has taken an adversarial approach with Beijing, saying he believes this is the only way to force changes.

The Dow dropped 799 points, or 3.1%, on Tuesday. The S&P 500 was up almost 33 points (1.2%), while the Nasdaq index jumped 122 points, a 1.66% increase. The JSE was closed before the latest jitters, with the all-share index ending the day 0.3% higher.

So far, Trump administration officials have offered tempered optimism on China's ability to move ahead with verbal commitments following years of broken promises.

It also said China had agreed to start buying farm products from US farmers immediately.

Cui added that negotiators would actually have less than 90 days to reach a deal because of holidays in both countries over the next three months.

China's foreign ministry, the only government department that holds a daily briefing that foreign media can attend, has repeatedly referred questions on details to the commerce ministry, which has yet to say anything. There, all sides agree, the American president agreed to postpone an increase in tariffs on Chinese imports to 25 percent from 10 percent, which was scheduled to take effect January 1, in exchange for negotiations on broader economic disputes.

But he also warned that tougher tariffs could be on the horizon if the Chinese don't play ball.

The president also returned to threatening China with higher tariffs.

The president confirmed that Bob Lighthizer would lead the negotiations with China with assistance from Treasury Secretary Steve Mnuchin, Larry Kudlow, Wilbur Ross, and Peter Navarro.

"That's what happens when you don't have the detailed negotiations going into the summit" and end up with the "broad swath of a 35,000-foot deal", said Bonnie Glaser, a China expert at the Center for Strategic and International Studies in Washington.

This was also the first time that the president suggested the negotiating window could be extended.

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

After describing the agreement made between China and the USA during the G-20 summit in Argentina over the weekend as "an incredible deal" and "one of the largest deals ever made", Donald Trump has done an unsurprising 180 after apparently finally appearing to catch up with reality.

"Let the negotiations begin", Trump wrote on Tuesday.

The president's words had the effect of making the weekend agreement, already a vague and uncertain one, seem even less likely to produce a long-lasting trade accord.

The two leaders said they would hold off on imposing additional tariffs for 90 days starting December 1 while they seek a solution to their trade disputes.

FBN's Charlie Gasparino on President Trump's trade policy.

Related Articles