Published: Mon, December 03, 2018
Money | By Arnold Ball

Trump, Xi agree to temporary truce on trade

Trump, Xi agree to temporary truce on trade

The benchmark S&P/ASX200 index was up 89.1 points, or 1.57 per cent, at 5,756.3 at 1030 AEDT on Monday, while the broader All Ordinaries was up 89.7 points at 5,839.0 after the weekend's trade breakthrough between US President Donald Trump and Chinese leader Xi Jinping at the G20 summit in Argentina.

The White House also confirmed that the U.S. won't raise tariffs on Chinese goods in January and will leave the recently implemented hike at 10 per cent on $US200 billion ($A273 billion) worth of Chinese products.

Washington also said that China would buy "very substantial" amounts of energy, industrial, and other goods from the U.S.in addition to agriculture products.

Other attendees on the U.S. side included Treasury Secretary Steven Mnuchin, Secretary of State Michael Pompeo, U.S. Trade Representative Robert Lighthizer, China hawk and senior adviser Peter Navarro, National Security Adviser John Bolton and Trump's son-in-law, Jared Kushner, who's a senior adviser to the president. Wang Shouwen, China's vice minister of commerce, said both sides will step up negotiations on eliminating the 10 percent tariff, according to Chinese state media outlet China Daily.

With this 90-day halt on new tariffs, we are hopeful this comes as a break for farmers and leads to future agreements between the two countries.

It was the first face-to-face meeting between the two leaders since Trump's China visit in November past year and since both countries started imposing tit-tat tariffs on each other's exports.

President Donald Trump and China's President Xi Jinping.

Qualcomm announced it was dropping plans to proceed with the deal after it failed to receive Chinese government approval.

Trump said they would also discuss the opioid crisis.

Ukraine bans entry to Russian adult men - border service chief
The Russian Orthodox Church and Russian authorities have strongly condemned the move, warning it could trigger sectarian violence. A Crimea court has ruled that the sailors will be detained for two months pending the outcome of an investigation.

"The two sides agreed to mutually open their markets, and as China advances a new round of reforms, the United States' legitimate concerns can be progressively resolved". The deadly synthetic opioid is responsible for tens of thousands of US drug deaths annually.

Trump said Bush's death put a "damper" on what he described as a "very important meeting" with Xi.

China's refusal to approve the deal upended the global expansion plans of a premier American company and showcased Beijing's ability to make the US feel financial pain in ways other than tariffs. However, the FTSE 100, whose listed companies are less exposed to the USA and China, dropped 1 per cent on Friday. China responded by adding its own import taxes to an equal amount of USA goods.

Many in Europe have looked to Merkel as Trump has called into question traditional trans-Atlantic ties with his announcements of trade tariffs, repeated criticism of European contributions to NATO and other issues.

Meanwhile, China has targeted $110 billion worth of United States imports for tariffs.

During the meeting, Xi also said that he was open to approving a previously rejected takeover deal by Qualcomm Inc.

Speaking ahead of the meeting, Trump said he had an "incredible relationship" with President Xi.

After a much anticipated dinner between the United States and China, both presidents emerged from a "highly successful meeting".

Trump has hit back at this so-called "China 2025" plan as a threat, accusing Beijing of stealing United States technologies. What's more likely, analysts say, is that they reach a truce, buying time for more substantive talks.

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