China trade vow after Trump talks helps settle financial markets

China trade vow after Trump talks helps settle financial markets

Chinese officials have begun preparing to restart imports of United States soybeans and liquefied natural gas, the first sign confirming the claims of President Donald Trump and the White House that China had agreed to start buying some USA products "immediately".

Chinese purchases for the aforementioned products have almost completely halted after Beijing imposed tariffs on them in response to the USA tariffs on Chinese goods.

Washington and Beijing said they will try to achieve a permanent deal within the next 90 days, however the USA still has significant leverage, stating that if a formal deal can't be reached then it will hike tariffs from 10 percent to 25 percent, which could roil global stock markets, stagnate global economic growth, dampen oil demand growth and possibly lead to a recession across the globe, particularly in emerging economies. "China does not want Tariffs!"

The Ministry of Commerce of China announced that the ultimate goal of the Chinese-American trade negotiations is the abolition of all fees.

Trump, however, also threatened to impose tariff on China, if failed to reach an agreement with the given deadline.

"We are right now taking in $billions in Tariffs".

Trump, in a post on Twitter, linked Beijing's silence to officials' travels and said he thought Xi had been honest during their weekend meeting to hammer out progress over trade.

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At the end of the day, two realities remain: the U.S.is now an energy (oil and gas) producing super power alongside the ranks of Russian Federation and Saudi Arabia, while China, conversely, is the world's largest energy consumer, which gives it less leverage in ongoing trade and even geopolitical negotiations and developments.

In return, China agreed to buy what the White House called a "not yet agreed upon, but very substantial" amount of US products to help narrow America's gaping trade deficit with China.

Such a move would have led to further tariffs on imports from the U.S.to China and vice-versa.

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

Keane also said that the Chinese leader intends to overtake the United States as a global leader in the world.

China has said comparatively little about the Trump-Xi agreement after senior Chinese officials briefed the media following the meeting, and USA and Chinese accounts of what the deal entails have sometimes differed. Xi 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.

A Chinese official told Reuters that officials were "waiting for the leaders to return" before publicizing details.

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