US Treasury Secretary Steven Mnuchin confirmed Sunday that Washington and Beijing have agreed to back off from imposing tariffs on each other, a day after reaching an accord on slashing the American trade deficit with China.

"We have made very meaningful progress and we agreed on a framework," Mnuchin told Fox News Sunday. "So right now we have agreed to put the tariffs on hold while we try to execute the framework."

China's Vice Premier Liu He, who led a high-level delegation to the United States this week, meantime confirmed that "the two sides reached a consensus, will not fight a trade war, and will stop increasing tariffs on each other," official Chinese news agency Xinhua reported.&nbsp

The apparent detente between the two economic giants follows months of increasing tensions that have set markets on edge over fears of a damaging trade war. &nbsp

The US-Chinese thaw raised concerns in some other countries still facing potential US tariffs, however, with France saying it could come "at the expense of Europe."

Mnuchin emphasized Sunday that the sides had also discussed structural changes by Beijing "to make sure that we have a fair ability to compete" in its vast market.&nbsp

Unfreezing the ice

As each side worked to set expectations, Liu cautioned that "unfreezing the ice cannot be done in a day" and that structural changes "will take time."

Mnuchin added a caution of his own, emphasizing that if China did not respect its commitments, Trump could "always decide to put the tariffs back on."

In the absence of an agreement, US levies on $50 billion of Chinese imports could have taken effect as early as next week. Tariffs on steel and aluminum were put in place in March.

A joint statement issued Saturday in Washington said Beijing would "significantly" increase its purchases of American goods, but offered few details.&nbsp

Last year, the United States had a $375.2 billion trade deficit with China, and Washington reportedly had demanded the deficit be slashed by at least $200 billion by 2020.

Targets not disclosed

Asked on Fox whether the agreement addressed the $200 billion demand, Mnuchin said, "We have specific targets" but that he would not disclose them publicly. &nbsp

He said they were set "industry by industry."

Trump's threats of further tariffs had prompted Beijing to warn it would target US agricultural exports, aircraft, and even whiskey.

Against that fraught backdrop, teams led by Mnuchin and Liu met earlier this month in Beijing. &nbsp

Both sides said further talks are planned to flesh out details.

"There was a consensus on taking effective measures to substantially reduce the United States trade deficit in goods with China," Saturday's joint statement said.

It added that "China will significantly increase purchases of United States goods and services."

Mnuchin said there would be "a very big increase" in Chinese purchases of US agricultural supplies -- by 35 percent to 45 percent this year -- as well as a potential doubling of energy purchases.

And Liu said the new cooperation would extend to medical care, high-tech products and finance, according to Xinhua.

The two sides also agreed to strengthen cooperation on protecting intellectual property -- a long-standing source of US discontent.

Korean complication

The trade issue is complicated by the impending summit meeting in Singapore between Trump and North Korean leader Kim Jong Un, who has consulted with Chinese leader Xi Jinping.&nbsp

China is North Korea's biggest trade partner, and Trump has called on it repeatedly to press Pyongyang to rein in its nuclear and missile programs.

Meantime, the effects of the new US-Chinese warming were being nervously assessed in other countries, with French Economy Minister Bruno Le Maire warning Sunday that it could exact a cost from Europe.

"The United States and China risk entering an agreement at the expense of Europe if Europe is not capable of showing a firm hand," he told CNEWS television.

Trump earlier this month granted the EU, along with Canada and Mexico, only a 30-day reprieve from threatened steel and aluminum tariffs.&nbsp

"The United States wants to make Europe and European countries pay for China's bad behavior," Le Maire said. "All of that is totally absurd and incomprehensible for allies."

The apparent detente between the two economic giants follows months of increasing tensions that have set markets on edge over fears of a damaging trade war

US Treasury Secretary Steven Mnuchin confirmed Sunday that Washington and Beijing have agreed to back off from imposing tariffs on each other, a day after reaching an accord on slashing the American trade deficit with China. "We have made very meaningful progress and we agreed on a framework," Mnuchin told Fox News Sunday. "So right now we have agreed to put the tariffs on hold while we try to execute the framework." China's Vice Premier Liu He, who led a high-level delegation to the United States this week, meantime confirmed that "the two sides reached a consensus, will not fight a trade war, and will stop increasing tariffs on each other," official Chinese news agency Xinhua reported. The apparent detente between the two economic giants follows months of increasing tensions that have set markets on edge over fears of a damaging trade war. The US-Chinese thaw raised concerns in some other countries still facing potential US tariffs, however, with France saying it could come "at the expense of Europe." Mnuchin emphasized Sunday that the sides had also discussed structural changes by Beijing "to make sure that we have a fair ability to compete" in its vast market. Unfreezing the ice As each side worked to set expectations, Liu cautioned that "unfreezing the ice cannot be done in a day" and that structural changes "will take time." Mnuchin added a caution of his own, emphasizing that if China did not respect its commitments, Trump could "always decide to put the tariffs back on." In the absence of an agreement, US levies on $50 billion of Chinese imports could have taken effect as early as next week. Tariffs on steel and aluminum were put in place in March. A joint statement issued Saturday in Washington said Beijing would "significantly" increase its purchases of American goods, but offered few details. Last year, the United States had a $375.2 billion trade deficit with China, and Washington reportedly had demanded the deficit be slashed by at least $200 billion by 2020. Targets not disclosed Asked on Fox whether the agreement addressed the $200 billion demand, Mnuchin said, "We have specific targets" but that he would not disclose them publicly. He said they were set "industry by industry." Trump's threats of further tariffs had prompted Beijing to warn it would target US agricultural exports, aircraft, and even whiskey. Against that fraught backdrop, teams led by Mnuchin and Liu met earlier this month in Beijing. Both sides said further talks are planned to flesh out details. "There was a consensus on taking effective measures to substantially reduce the United States trade deficit in goods with China," Saturday's joint statement said. It added that "China will significantly increase purchases of United States goods and services." Mnuchin said there would be "a very big increase" in Chinese purchases of US agricultural supplies -- by 35 percent to 45 percent this year -- as well as a potential doubling of energy purchases. And Liu said the new cooperation would extend to medical care, high-tech products and finance, according to Xinhua. The two sides also agreed to strengthen cooperation on protecting intellectual property -- a long-standing source of US discontent. Korean complication The trade issue is complicated by the impending summit meeting in Singapore between Trump and North Korean leader Kim Jong Un, who has consulted with Chinese leader Xi Jinping. China is North Korea's biggest trade partner, and Trump has called on it repeatedly to press Pyongyang to rein in its nuclear and missile programs. Meantime, the effects of the new US-Chinese warming were being nervously assessed in other countries, with French Economy Minister Bruno Le Maire warning Sunday that it could exact a cost from Europe. "The United States and China risk entering an agreement at the expense of Europe if Europe is not capable of showing a firm hand," he told CNEWS television. Trump earlier this month granted the EU, along with Canada and Mexico, only a 30-day reprieve from threatened steel and aluminum tariffs. "The United States wants to make Europe and European countries pay for China's bad behavior," Le Maire said. "All of that is totally absurd and incomprehensible for allies."

US, China back off on tariffs, easing trade tensions

China&nbsp;is set to name Liu He, a Harvard-trained economist who advises President Xi Jinping, as a vice premier overseeing the economy and financial sector, five sources familiar with the development said.

Liu&#39;s promotion would be part of a wider government reshuffle following the 19th Communist Party Congress in October last year, during which Xi laid out his vision for&nbsp;China&#39;s long-term development, and elevated his key allies.

At the Congress, 66-year old Liu - a trusted confidant of Xi and his top adviser on economic policies - was elected into the 25-member Politburo, the second-highest tier in Beijing&#39;s political power structure after the seven-member Politburo Standing Committee.

Xi has vowed to fend off &quot;major risks&quot; in the world&#39;s second-largest economy over the next three years as he seeks to cement the country&#39;s position as a leading global power.

&quot;He (Liu) is likely to take overall control of&nbsp;China&#39;s economic policies and financial issues,&quot; said a source, declining to be named due to the sensitivity of the matter.

Liu, who heads the General Office of the ruling Communist Party&#39;s Central Leading Group for Financial and Economic Affairs, is likely to succeed Ma Kai, one of&nbsp;China&#39;s four vice premiers, the sources said.

Ma has been in charge of macroeconomic policies and the financial sector. The 71-year-old Ma was left out of the Politburo in October, suggesting he is likely to step down soon.

Liu is also set to replace Ma as head of the cabinet-level Financial Stability and Development Committee (FSDC), three of the sources said.

The committee was set up in November to improve supervision coordination among regulators to fend off financial risks.

The State Council Information Office, the government&#39;s public relations arm, did not immediately respond to a faxed request for comment.

Well Qualified

Sources said Liu is well qualified for the new job given his deep understanding of&nbsp;China&#39;s economic issues, and his role in communications between&nbsp;China&nbsp;and US leaders.&nbsp;

Liu, who gained a master&#39;s degree in public administration at Harvard&#39;s Kennedy School of Government in 1995, is widely seen masterminding Xi&#39;s supply-side reform drive to cut excess factory capacity and upgrade the economy.

Liu, who speaks fluent English, won a top Chinese economics study award in 2015 for his research on the global financial crisis.

He was also widely seen by political analysts as being behind the voice of an unnamed &quot;authoritative person&quot; who wrote in the People&#39;s Daily, the party&#39;s mouthpiece, in May 2016 warning about risks from the country&#39;s debt-driven growth model.

Liu, who is also vice minister of the cabinet&#39;s National Development and Reform Commission (NDRC) -&nbsp;China&#39;s top economic planner - has played a behind-the-scenes role in drafting economic policies and reform plans.

In a speech at the World Economic Forum in Davos on Wednesday, Liu said&nbsp;China&nbsp;will roll out fresh market-opening measures this year and added such measures will exceed outside expectations.&nbsp;&nbsp;

Liu, like Zhou Xiaochuan,&nbsp;China&#39;s central bank head, stands out among Chinese bureaucrats because of his grey hair. Many top officials dye their hair jet-black.

Zhou, the longest-serving central bank chief since the establishment of the People&rsquo;s Republic of&nbsp;China&nbsp;in 1949, is expected to retire soon. Zhou, who has been running the central bank since 2002, will turn 70 this year.

Liu has been closely following Xi on regional tours and meetings with foreign leaders. When then-US National Security Adviser Tom Donilon visited Beijing in 2013, Xi introduced Liu as &quot;very important to me&quot;, according to the Wall Street Journal.

Liu and Xi have similar backgrounds - both their families were purged during the 1966-76 Cultural Revolution, and both their fathers were senior officials.

&ldquo;Without the reflection on the catastrophe of the Cultural Revolution, it is impossible for&nbsp;China&nbsp;to have today&#39;s economic growth,&rdquo; Liu said in an article published in 2017.

A source with ties to the leadership said Xi and Liu knew each other during their teens, and have kept in touch over the years.

Liu got a master&#39;s degree in industrial economy from Beijing&#39;s Renmin University in 1986 and later joined the State Planning Commission - the predecessor of NDRC.

China is set to name Liu He, a Harvard-trained economist who advises President Xi Jinping, as a vice premier overseeing the economy and financial sector, five sources familiar with the development said

China is set to name Liu He, a Harvard-trained economist who advises President Xi Jinping, as a vice premier overseeing the economy and financial sector, five sources familiar with the development said. Liu's promotion would be part of a wider government reshuffle following the 19th Communist Party Congress in October last year, during which Xi laid out his vision for China's long-term development, and elevated his key allies. At the Congress, 66-year old Liu - a trusted confidant of Xi and his top adviser on economic policies - was elected into the 25-member Politburo, the second-highest tier in Beijing's political power structure after the seven-member Politburo Standing Committee. Xi has vowed to fend off "major risks" in the world's second-largest economy over the next three years as he seeks to cement the country's position as a leading global power. "He (Liu) is likely to take overall control of China's economic policies and financial issues," said a source, declining to be named due to the sensitivity of the matter. Liu, who heads the General Office of the ruling Communist Party's Central Leading Group for Financial and Economic Affairs, is likely to succeed Ma Kai, one of China's four vice premiers, the sources said. Ma has been in charge of macroeconomic policies and the financial sector. The 71-year-old Ma was left out of the Politburo in October, suggesting he is likely to step down soon. Liu is also set to replace Ma as head of the cabinet-level Financial Stability and Development Committee (FSDC), three of the sources said. The committee was set up in November to improve supervision coordination among regulators to fend off financial risks. The State Council Information Office, the government's public relations arm, did not immediately respond to a faxed request for comment. Well Qualified Sources said Liu is well qualified for the new job given his deep understanding of China's economic issues, and his role in communications between China and US leaders. Liu, who gained a master's degree in public administration at Harvard's Kennedy School of Government in 1995, is widely seen masterminding Xi's supply-side reform drive to cut excess factory capacity and upgrade the economy. Liu, who speaks fluent English, won a top Chinese economics study award in 2015 for his research on the global financial crisis. He was also widely seen by political analysts as being behind the voice of an unnamed "authoritative person" who wrote in the People's Daily, the party's mouthpiece, in May 2016 warning about risks from the country's debt-driven growth model. Liu, who is also vice minister of the cabinet's National Development and Reform Commission (NDRC) - China's top economic planner - has played a behind-the-scenes role in drafting economic policies and reform plans. In a speech at the World Economic Forum in Davos on Wednesday, Liu said China will roll out fresh market-opening measures this year and added such measures will exceed outside expectations. Liu, like Zhou Xiaochuan, China's central bank head, stands out among Chinese bureaucrats because of his grey hair. Many top officials dye their hair jet-black. Zhou, the longest-serving central bank chief since the establishment of the People’s Republic of China in 1949, is expected to retire soon. Zhou, who has been running the central bank since 2002, will turn 70 this year. Liu has been closely following Xi on regional tours and meetings with foreign leaders. When then-US National Security Adviser Tom Donilon visited Beijing in 2013, Xi introduced Liu as "very important to me", according to the Wall Street Journal. Liu and Xi have similar backgrounds - both their families were purged during the 1966-76 Cultural Revolution, and both their fathers were senior officials. “Without the reflection on the catastrophe of the Cultural Revolution, it is impossible for China to have today's economic growth,” Liu said in an article published in 2017. A source with ties to the leadership said Xi and Liu knew each other during their teens, and have kept in touch over the years. Liu got a master's degree in industrial economy from Beijing's Renmin University in 1986 and later joined the State Planning Commission - the predecessor of NDRC.

China to name Harvard-trained Liu He as vice premier overseeing economy: Sources

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US, China back off on tariffs, easing trade tensions

China to name Harvard-trained Liu He as vice premier overseeing economy: Sources