China trade vow after Trump talks helps settle financial markets

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The U.S. agreed to refrain from raising tariffs on $200 billion of Chinese goods from a current 10 percent to punitive levels of 25 percent as planned on January 1, according to announcements that followed the meeting between U.S. President Donald Trump and Chinese President Xi Jinping in Argentina.

Talks during the 90 day period during which President Donald Trump has agreed to suspend USA tariff hikes will start by focusing on farm goods, energy and automobiles, said a Ministry of Commerce spokesman, Gao Feng.

Hours after threatening "major tariffs" on Chinese goods unless a new trade deal is reached, President Trump on Wednesday claimed his administration is hearing "very strong signals being sent by China".

Executives from the three automakers were invited to individual meetings with Trump's top economic advisers to discuss investment opportunities in the United States, including in manufacturing and research and development, the White House said.

In addition, Treasury Secretary Steven Mnuchin said on Tuesday on the Fox Business Network that China agreed to buy $1.2 trillion of USA products.

China's foreign ministry, the only government department that holds a daily briefing foreign media can attend, has repeatedly referred questions on details to the commerce ministry, which has yet to say anything.

The ministry lauded Trump's talks with President Xi Jinping at the weekend as "successful" and said it was "confident" their agreement would be implemented.

But the mood has quickly soured on scepticism that the two sides will be able to reach a substantive deal on a host of highly divisive issues within the short negotiating period agreed.

Failure would raise the specter of a major escalation in the trade battle, with fresh US tariff action and Chinese retaliation possibly as early as March.

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The US President said China was supposed to begin buying US agricultural products and others "immediately" as part of an agreement to reduce the trade imbalance between them. This is significant because China has never paid much attention to controlling the export of anything other than weapons and has even denied its obvious role in the USA opioid crisis.

The stock market will be closed on Wednesday, during President H.W. Bush's funeral.

BMW said in its statement that it plans to invest $600 million more at its Spartanburg plant in SC through 2021 for future generations of the BMW X models and will create 1,000 more jobs by 2021.

"Relations with China have taken a BIG leap forward!"

Though a confirmation of a 90-day time frame is reassuring (though China did not specify when it thinks the clock started ticking), we can still not be sure that Beijing has the same "agreed-upon consensus" in mind as Washington.

Trump and his Chinese counterpart Xi Jingping agreed to the truce on the sidelines of the G20 summit in Argentina.

Meanwhile, President Donald Trump on December 5 wrote on Twitter that China was sending "strong signals", and expressed optimism that the regime would fulfill its side of the bargain. Chinese officials, meanwhile, did not confirm any of these details.

The Trump administration is celebrating the 90-day truce it reached in its trade war with China as a significant breakthrough despite scant details, a hazy timetable and widespread scepticism that Beijing will yield to the United States demands anytime soon. "Chinese society should maintain a calm attitude", it said.

"I have no assurances" China will change, Kudlow said, speaking at an event hosted by the Wall Street Journal.