President Donald Trump said Friday that trade negotiations with <a href="http://www.wionews.com/world/had-productive-trade-meetings-with-china-us-secretary-mnuchin-197584">China</a> were going "extremely well" and again offered the possibility of extending the March 1 deadline for a sharp rise in punitive tariffs.

Senior officials completed two days of high-stakes talks in Beijing on Friday as they try to avert the US threat to more than double tariffs on $200 billion in Chinese goods, which would be an unwelcome shock to the world's second-largest economy as it already has shown signs of slowing.&nbsp;

"It is going extremely well," Trump said of the talks.&nbsp;

"The tariffs are hurting China very badly. They don't want them and frankly if we can make the deal it would be my honour to remove them," he told reporters at the White House.

The president confirmed his comments earlier this week that he might be willing to hold off on increasing tariffs to 25 per cent from the current 10 per cent, if Washington and Beijing are close to finalizing an agreement to deal with US complaints about unfair trade and theft of American technology.

"There is a possibility that I will extend the date," he told reporters. "If I see we're close to a deal or the deal is going in the right direction, I would do that."

After progress in the talks in Beijing, the fourth round of negotiations is scheduled for next week in Washington.

Trump said he likes tariffs which are bringing "many billions of dollars pouring into our Treasury," but continues to state that China is paying the duties, when in fact they are paid by US companies and ultimately by American consumers in the form of higher prices.

"The tariffs are hurting China very badly. They don't want them and frankly, if we can make the deal it would be my honour to remove them."

'The vibe is good'

Chinese President Xi Jinping hailed the "important step-by-step progress," and said he hoped the two delegations would continue to "work hard" for a "win-win" agreement, according to China's state news agency Xinhua.

Wall Street was cheered by the talks' optimistic tone, with the benchmark Dow Jones Industrial Average up more than 350 points or 1.5 per cent around midday.

American officials accuse Beijing of seeking global industrial predominance through an array of unfair trade practices, including the "theft" of American intellectual property and massive state intervention in commodities markets.

Since a December detente, China has resumed purchases of some US soybeans and dangled massive buying of American commodities to get US trade negotiators closer to a deal.

The talks have included discussion of purchases to reduce the "large and persistent bilateral trade deficit," the White House said in a statement.&nbsp;

But many China experts say Beijing's Communist Party rulers are unlikely to make significant changes to industrial policies without a long and tough fight.

Still, expectations for an accord have been growing as China faces pressure from slowing economic growth.&nbsp;

"We all believe that China-US relations have broad common interests in safeguarding world peace and stability and promoting global economic prosperity and development," Xi told the US negotiators.

US Trade Representative Robert Lighthizer, who led the American delegation, told Xi on Friday that while there was more work to do, they had made progress.

Lighthizer and US Treasury Secretary Steven Mnuchin and met with China's top trade negotiator Liu He, Foreign Minister Wang Yi and central bank chief Yi Gang.&nbsp;

Bloomberg News reported that the White House was considering a 60-day deadline extension, but Trump did not offer any particulars.&nbsp;

Trump's economic advisor Larry Kudlow said of the talks, "the vibe is good" but there was no decision yet on extending the 90-day tariff truce.

The two sides last year exchanged tariffs on more than $360 billion in two-way trade.

China's politically sensitive trade surplus with the US last year hit a record $323 billion as tariffs kept Chinese buyers away from American agricultural and energy exports.

Trump has said that any eventual trade deal would need to be sealed personally with Xi, though no date has been set for a meeting.

President Donald Trump said Friday that trade negotiations with China were going "extremely well" and again offered the possibility of extending the March 1 deadline for a sharp rise in punitive tariffs.

President Donald Trump said Friday that trade negotiations with China were going "extremely well" and again offered the possibility of extending the March 1 deadline for a sharp rise in punitive tariffs. Senior officials completed two days of high-stakes talks in Beijing on Friday as they try to avert the US threat to more than double tariffs on $200 billion in Chinese goods, which would be an unwelcome shock to the world's second-largest economy as it already has shown signs of slowing. "It is going extremely well," Trump said of the talks. "The tariffs are hurting China very badly. They don't want them and frankly if we can make the deal it would be my honour to remove them," he told reporters at the White House. The president confirmed his comments earlier this week that he might be willing to hold off on increasing tariffs to 25 per cent from the current 10 per cent, if Washington and Beijing are close to finalizing an agreement to deal with US complaints about unfair trade and theft of American technology. "There is a possibility that I will extend the date," he told reporters. "If I see we're close to a deal or the deal is going in the right direction, I would do that." After progress in the talks in Beijing, the fourth round of negotiations is scheduled for next week in Washington. Trump said he likes tariffs which are bringing "many billions of dollars pouring into our Treasury," but continues to state that China is paying the duties, when in fact they are paid by US companies and ultimately by American consumers in the form of higher prices. "The tariffs are hurting China very badly. They don't want them and frankly, if we can make the deal it would be my honour to remove them." 'The vibe is good' Chinese President Xi Jinping hailed the "important step-by-step progress," and said he hoped the two delegations would continue to "work hard" for a "win-win" agreement, according to China's state news agency Xinhua. Wall Street was cheered by the talks' optimistic tone, with the benchmark Dow Jones Industrial Average up more than 350 points or 1.5 per cent around midday. American officials accuse Beijing of seeking global industrial predominance through an array of unfair trade practices, including the "theft" of American intellectual property and massive state intervention in commodities markets. Since a December detente, China has resumed purchases of some US soybeans and dangled massive buying of American commodities to get US trade negotiators closer to a deal. The talks have included discussion of purchases to reduce the "large and persistent bilateral trade deficit," the White House said in a statement. But many China experts say Beijing's Communist Party rulers are unlikely to make significant changes to industrial policies without a long and tough fight. Still, expectations for an accord have been growing as China faces pressure from slowing economic growth. "We all believe that China-US relations have broad common interests in safeguarding world peace and stability and promoting global economic prosperity and development," Xi told the US negotiators. US Trade Representative Robert Lighthizer, who led the American delegation, told Xi on Friday that while there was more work to do, they had made progress. Lighthizer and US Treasury Secretary Steven Mnuchin and met with China's top trade negotiator Liu He, Foreign Minister Wang Yi and central bank chief Yi Gang. Bloomberg News reported that the White House was considering a 60-day deadline extension, but Trump did not offer any particulars. Trump's economic advisor Larry Kudlow said of the talks, "the vibe is good" but there was no decision yet on extending the 90-day tariff truce. The two sides last year exchanged tariffs on more than $360 billion in two-way trade. China's politically sensitive trade surplus with the US last year hit a record $323 billion as tariffs kept Chinese buyers away from American agricultural and energy exports. Trump has said that any eventual trade deal would need to be sealed personally with Xi, though no date has been set for a meeting.

Trump says could extend March 1 China tariff deadline

High level US trade negotiators in Beijing will meet with Chinese President Xi Jinping, a top White House official confirmed Thursday.

President Donald Trump's economic advisor Larry Kudlow told reporters in Washington that he'd just talked to the delegation, which includes US Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin.

"They're covering all the ground. They're hard at it. They are going to meet with President Xi, so that's a very good sign," he said.

Kudlow said "the vibe is good."

But he said there'd been "no decision" on extending a March 1 truce in tariff hikes between the world's two main economic powers.

Earlier, the South China Morning Post reported that the US officials would meet with Xi, bolstering hopes for a successful outcome in the talks.

Trump has said he is open to extending the March 1 deadline to give time for more negotiations and he says he will meet with Xi to finalise any deal.

The United States accuses China of a slew of unfair trading practices, including systemic theft of US intellectual property, and wants deep reforms to the system.

Beijing and Washington have already imposed duties on more than $360 billion in two-way trade, weighing on their manufacturing sectors and shaking global financial markets.

High level US trade negotiators in Beijing will meet with Chinese President Xi Jinping, a top White House official confirmed Thursday. President Donald Trump's economic advisor Larry Kudlow told reporters in Washington that he'd just talked to the delegation, which includes US Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin.

High level US trade negotiators in Beijing will meet with Chinese President Xi Jinping, a top White House official confirmed Thursday. President Donald Trump's economic advisor Larry Kudlow told reporters in Washington that he'd just talked to the delegation, which includes US Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin. "They're covering all the ground. They're hard at it. They are going to meet with President Xi, so that's a very good sign," he said. Kudlow said "the vibe is good." But he said there'd been "no decision" on extending a March 1 truce in tariff hikes between the world's two main economic powers. Earlier, the South China Morning Post reported that the US officials would meet with Xi, bolstering hopes for a successful outcome in the talks. Trump has said he is open to extending the March 1 deadline to give time for more negotiations and he says he will meet with Xi to finalise any deal. The United States accuses China of a slew of unfair trading practices, including systemic theft of US intellectual property, and wants deep reforms to the system. Beijing and Washington have already imposed duties on more than $360 billion in two-way trade, weighing on their manufacturing sectors and shaking global financial markets.

US trade negotiators to meet with Chinese President Xi Jinping: White House

The US businesses paid an additional $2.7 billion in tariffs in November 2018, according to data from a coalition of US business groups fighting <a href="http://www.wionews.com/world/clash-over-trump-tariffs-heats-up-with-barrage-of-wto-litigation-172364">President Donald Trump's trade tariffs</a>.

The group, which brands itself "Tariffs Hurt the Heartland" and includes the Americans for Free Trade coalition and Farmers for Free Trade, crunches tariff payment data nationally and by state.

The data is part of a monthly series called the Tariff Tracker, which the group releases in a tie-up with The Trade Partnership, a Washington-based international trade and economic consulting firm. The monthly import data, it said, is calculated using numbers from the US Census Bureau, and the monthly export data is compiled using numbers from the Census Bureau and the US Department of Agriculture.

The November numbers are the latest government ones available due to the recent US government shutdown.

The group's spokesman, former Republican congressman Charles Boustany, said the data shows Americans, not foreign competitors, are the big losers in the trade war.

"US businesses are being hit by a double whammy of historic tax increases in the form of tariffs and declining exports as farmers and manufacturers lose opportunities in the overseas markets they rely on," Boustany said.

The group also said retaliatory tariffs have severely impacted US exports. In November, US exports of products subject to retaliatory tariffs declined by $4.1 billion, or 37 per cent, from the previous year, it said.

Hun Quach, vice president of international trade at the Retail Industry Leaders Association, said raising tariffs on thousands of consumer products will cause massive disruption to retailers in an already uncertain environment.

US tariffs on $200 billion worth of imports from China are scheduled to rise to 25 per cent from 10 per cent if the two sides cannot reach a deal by a March 1 deadline. On Wednesday, US Treasury Secretary Steven Mnuchin told reporters in Beijing that talks between the two sides were going well.

White House press secretary Sarah Sanders told Fox News that Trump is weighing different possibilities on how to treat the March 1 deadline to reach a trade deal with China, adding that the final agreement depends on Trump and Chinese President Xi Jinping meeting in person.

The United States would escalate tariffs on Chinese goods if the deadline is missed, and likely prompt China to retaliate.

The US businesses paid an additional $2.7 billion in tariffs in November 2018, according to data from a coalition of US business groups fighting President Donald Trump's trade tariffs.

The US businesses paid an additional $2.7 billion in tariffs in November 2018, according to data from a coalition of US business groups fighting President Donald Trump's trade tariffs. The group, which brands itself "Tariffs Hurt the Heartland" and includes the Americans for Free Trade coalition and Farmers for Free Trade, crunches tariff payment data nationally and by state. The data is part of a monthly series called the Tariff Tracker, which the group releases in a tie-up with The Trade Partnership, a Washington-based international trade and economic consulting firm. The monthly import data, it said, is calculated using numbers from the US Census Bureau, and the monthly export data is compiled using numbers from the Census Bureau and the US Department of Agriculture. The November numbers are the latest government ones available due to the recent US government shutdown. The group's spokesman, former Republican congressman Charles Boustany, said the data shows Americans, not foreign competitors, are the big losers in the trade war. "US businesses are being hit by a double whammy of historic tax increases in the form of tariffs and declining exports as farmers and manufacturers lose opportunities in the overseas markets they rely on," Boustany said. The group also said retaliatory tariffs have severely impacted US exports. In November, US exports of products subject to retaliatory tariffs declined by $4.1 billion, or 37 per cent, from the previous year, it said. Hun Quach, vice president of international trade at the Retail Industry Leaders Association, said raising tariffs on thousands of consumer products will cause massive disruption to retailers in an already uncertain environment. US tariffs on $200 billion worth of imports from China are scheduled to rise to 25 per cent from 10 per cent if the two sides cannot reach a deal by a March 1 deadline. On Wednesday, US Treasury Secretary Steven Mnuchin told reporters in Beijing that talks between the two sides were going well. White House press secretary Sarah Sanders told Fox News that Trump is weighing different possibilities on how to treat the March 1 deadline to reach a trade deal with China, adding that the final agreement depends on Trump and Chinese President Xi Jinping meeting in person. The United States would escalate tariffs on Chinese goods if the deadline is missed, and likely prompt China to retaliate.

US group says Trump trade tariffs cost businesses $2.7 billion in November

US Treasury Secretary Steven Mnuchin said talks with China went well on Wednesday, as the world's two largest economies try to iron out an agreement to resolve their trade dispute.

"So far, so good," he said when asked by reporters on how the meetings in Beijing went. He did not say who he met.

Mnuchin said earlier he hoped for "productive" trade meetings as the two countries seek to end a festering dispute that has seen both sides level tariffs at one other.

US tariffs on $200 billion worth of imports from China are scheduled to rise to 25 per cent from 10 per cent if the two sides cannot reach a deal by a March 1 deadline, increasing pain and costs in sectors from consumer electronics to agriculture.

Mnuchin, asked by reporters as he left his Beijing hotel what his hopes were for the visit, said "productive meetings". He did not elaborate.

Mnuchin, along with US Trade Representative Robert Lighthizer, arrived in the Chinese capital on Tuesday.

US President Donald Trump said on Tuesday that he could let the deadline for a trade agreement "slide for a little while," but that he would prefer not to and expects to meet with Chinese President Xi Jinping to close the deal at some point.

Trump's advisers have previously described March 1 as a "hard deadline," but Trump told reporters that a delay was now possible.

He said in December that the 90-day truce could be extended, but that he could revert to tariffs if differences could not be resolved.

A growing number of US businesses and lawmakers have expressed hopes for a delay in the tariff increase while the two sides tackle the difficult US demands for major structural policy changes by China aimed at ending the forced transfer of American trade secrets, curbing Beijing's industrial subsidies and enforcing intellectual property rights.

Trump said last week he did not plan to meet with Xi before the March 1 deadline.

Mnuchin and Lighthizer are scheduled to hold talks on Thursday and Friday with Vice Premier Liu He, the top economic adviser to Xi.

The latest round of talks in Beijing kicked off on Monday with discussions among deputy-level officials to try to work out technical details, including a mechanism for enforcing any trade agreement.

China's Foreign Ministry referred questions on the talks to the Ministry of Commerce, which did not respond to a request for comment.

A round of talks at the end of January ended with some progress reported, but no deal, and US declarations that much more work was needed.

Dodge a bullet

James Green, a senior research fellow at Georgetown University, said he believed China was looking to secure a Xi-Trump meeting in the hope that it would make a near-term deal on tariffs far more likely.

"From their point of view, they would have dodged a bullet," Green, who was USTR's top official at the US embassy in Beijing until mid-2018, told Reuters by telephone.

But there is growing bipartisan concern in the United States about increasing state control of China's economy, military activity in the South China Sea, and security issues around its technology companies.

Even if the two sides could come to terms on tariffs, that might not mean an end to trade friction, Green added.

"I think that whatever we might get for an agreement, it will be a pause, because the US government is still going to move forward in the telecoms sector, on law enforcement and legal action, and on sanctions-related issues."

US Secretary of State Mike Pompeo cautioned allies on Monday against deploying equipment from Chinese telecoms giant Huawei Technologies on their soil, saying it would make it more difficult for Washington to "partner alongside them".

The United States and its Western allies believe Huawei's apparatus could be used for espionage, and see its expansion into central Europe as a way to gain a foothold in the European Union market.

Both the Chinese government and Huawei have dismissed these concerns.

US Treasury Secretary Steven Mnuchin said talks with China went well on Wednesday, as the world's two largest economies try to iron out an agreement to resolve their trade dispute.

US Treasury Secretary Steven Mnuchin said talks with China went well on Wednesday, as the world's two largest economies try to iron out an agreement to resolve their trade dispute. "So far, so good," he said when asked by reporters on how the meetings in Beijing went. He did not say who he met. Mnuchin said earlier he hoped for "productive" trade meetings as the two countries seek to end a festering dispute that has seen both sides level tariffs at one other. US tariffs on $200 billion worth of imports from China are scheduled to rise to 25 per cent from 10 per cent if the two sides cannot reach a deal by a March 1 deadline, increasing pain and costs in sectors from consumer electronics to agriculture. Mnuchin, asked by reporters as he left his Beijing hotel what his hopes were for the visit, said "productive meetings". He did not elaborate. Mnuchin, along with US Trade Representative Robert Lighthizer, arrived in the Chinese capital on Tuesday. US President Donald Trump said on Tuesday that he could let the deadline for a trade agreement "slide for a little while," but that he would prefer not to and expects to meet with Chinese President Xi Jinping to close the deal at some point. Trump's advisers have previously described March 1 as a "hard deadline," but Trump told reporters that a delay was now possible. He said in December that the 90-day truce could be extended, but that he could revert to tariffs if differences could not be resolved. A growing number of US businesses and lawmakers have expressed hopes for a delay in the tariff increase while the two sides tackle the difficult US demands for major structural policy changes by China aimed at ending the forced transfer of American trade secrets, curbing Beijing's industrial subsidies and enforcing intellectual property rights. Trump said last week he did not plan to meet with Xi before the March 1 deadline. Mnuchin and Lighthizer are scheduled to hold talks on Thursday and Friday with Vice Premier Liu He, the top economic adviser to Xi. The latest round of talks in Beijing kicked off on Monday with discussions among deputy-level officials to try to work out technical details, including a mechanism for enforcing any trade agreement. China's Foreign Ministry referred questions on the talks to the Ministry of Commerce, which did not respond to a request for comment. A round of talks at the end of January ended with some progress reported, but no deal, and US declarations that much more work was needed. Dodge a bullet James Green, a senior research fellow at Georgetown University, said he believed China was looking to secure a Xi-Trump meeting in the hope that it would make a near-term deal on tariffs far more likely. "From their point of view, they would have dodged a bullet," Green, who was USTR's top official at the US embassy in Beijing until mid-2018, told Reuters by telephone. But there is growing bipartisan concern in the United States about increasing state control of China's economy, military activity in the South China Sea, and security issues around its technology companies. Even if the two sides could come to terms on tariffs, that might not mean an end to trade friction, Green added. "I think that whatever we might get for an agreement, it will be a pause, because the US government is still going to move forward in the telecoms sector, on law enforcement and legal action, and on sanctions-related issues." US Secretary of State Mike Pompeo cautioned allies on Monday against deploying equipment from Chinese telecoms giant Huawei Technologies on their soil, saying it would make it more difficult for Washington to "partner alongside them". The United States and its Western allies believe Huawei's apparatus could be used for espionage, and see its expansion into central Europe as a way to gain a foothold in the European Union market. Both the Chinese government and Huawei have dismissed these concerns.

'So far, so good,' Steven Mnuchin says of trade talks in China

Washington and Beijing are "miles and miles" from resolving their trade war, US Commerce Secretary Wilbur Ross said Thursday.

A high-level Chinese delegation is due in Washington next week for talks to resolve the dispute by March 1, when US duty rates on Chinese imports are due to rise sharply, but Ross tried to tamp down expectations to those meetings.

"There's been a lot of anticipatory work done but we're miles and miles from getting a resolution and that shouldn't be too surprising," Ross told CNBC.

As the world economy comes under increasing strain, the possibility of failure in the US-China talks has rattled global stock markets repeatedly over the last year.

Wall Street futures fell during his remarks, which came a day after the White House contradicted reports the trade talks had hit serious obstacles. His comments also coincided with pessimistic policy remarks from the European Central Bank.&nbsp;

US stocks bounced in and out of the red during the day and finished mixed.

Washington accuses Beijing of a host of unfair trading practices, especially theft of American technological know-how.

Ross said there was still "a fair chance" of reaching a deal with Beijing, but much work remains to be done since the dispute involves issues difficult to address in a short timeframe.

'Mutually indispensable'&nbsp;

"I believe China would like to make a deal. I believe we would like to make a deal but it has to be a deal that works for both parties," he said.

"I'm trying to say people shouldn't think the events of next week will be the solution to all of the issues between the United States and China."

Washington and Beijing last year exchanged tariffs on more than $360 billion in two-way trade, slowing the economies in both countries.

Top White House economic adviser Larry Kudlow on Wednesday helped right Wall Street stock prices, denying media reports that US officials had called off a preparatory meeting this week due to a supposed lack of progress.

Kudlow told reporters on Thursday that next week's meeting would be "very important" but "not the end of the game."

The US message to China, he said, was "open up your economy. We'll export like crazy."

Earlier at the World Economic Forum in Switzerland on Wednesday, Chinese Vice President Wang Qishan said,&nbsp;"neither side can do without the other."

"The Chinese and US economies are mutually indispensable, so their relations must be mutually beneficial and win-win," Wang said.

Despite President Donald Trump's hard line tactics, the US trade deficit with China has continued to grow, underscoring the extent to which American industry has come to rely on the Asian giant's manufacturing base.

Last year, China posted its slowest growth in nearly three decades, and economists say the trade war is sapping the strength of the world's second-largest economy.

Washington and Beijing are "miles and miles" from resolving their trade war, US Commerce Secretary Wilbur Ross said Thursday. A high-level Chinese delegation is due in Washington next week for talks to resolve the dispute by March 1, when US duty rates on Chinese imports are due to rise sharply, but Ross tried to tamp down expectations to those meetings.

Washington and Beijing are "miles and miles" from resolving their trade war, US Commerce Secretary Wilbur Ross said Thursday. A high-level Chinese delegation is due in Washington next week for talks to resolve the dispute by March 1, when US duty rates on Chinese imports are due to rise sharply, but Ross tried to tamp down expectations to those meetings. "There's been a lot of anticipatory work done but we're miles and miles from getting a resolution and that shouldn't be too surprising," Ross told CNBC. As the world economy comes under increasing strain, the possibility of failure in the US-China talks has rattled global stock markets repeatedly over the last year. Wall Street futures fell during his remarks, which came a day after the White House contradicted reports the trade talks had hit serious obstacles. His comments also coincided with pessimistic policy remarks from the European Central Bank. US stocks bounced in and out of the red during the day and finished mixed. Washington accuses Beijing of a host of unfair trading practices, especially theft of American technological know-how. Ross said there was still "a fair chance" of reaching a deal with Beijing, but much work remains to be done since the dispute involves issues difficult to address in a short timeframe. 'Mutually indispensable' "I believe China would like to make a deal. I believe we would like to make a deal but it has to be a deal that works for both parties," he said. "I'm trying to say people shouldn't think the events of next week will be the solution to all of the issues between the United States and China." Washington and Beijing last year exchanged tariffs on more than $360 billion in two-way trade, slowing the economies in both countries. Top White House economic adviser Larry Kudlow on Wednesday helped right Wall Street stock prices, denying media reports that US officials had called off a preparatory meeting this week due to a supposed lack of progress. Kudlow told reporters on Thursday that next week's meeting would be "very important" but "not the end of the game." The US message to China, he said, was "open up your economy. We'll export like crazy." Earlier at the World Economic Forum in Switzerland on Wednesday, Chinese Vice President Wang Qishan said, "neither side can do without the other." "The Chinese and US economies are mutually indispensable, so their relations must be mutually beneficial and win-win," Wang said. Despite President Donald Trump's hard line tactics, the US trade deficit with China has continued to grow, underscoring the extent to which American industry has come to rely on the Asian giant's manufacturing base. Last year, China posted its slowest growth in nearly three decades, and economists say the trade war is sapping the strength of the world's second-largest economy.

US, China 'miles and miles' from resolving trade conflict: Official

The <a href="http://www.wionews.com/world/without-a-wall-our-country-can-never-have-national-security-says-trump-as-government-shutdown-enters-second-month-192081">United States</a> has rejected Beijing's offer to hold preparatory talks in Washington ahead of next week's high-level trade delegation, according to media reports.

The reports by The Financial Times and CNBC sent US stocks sharply lower, reviving fears that efforts to resolve the US-China trade war could fail.&nbsp;

Citing a lack of progress on some of the thorniest issues in the trade&nbsp;dispute -- including allegedly forced technology transfers and structural reforms to China's economy -- Washington cancelled plans for a face-to-face preparatory meeting this week, according to The Times.

Chinese Vice Premier Liu He is due to travel to the United States next week as the two sides work to resolve their disagreements by March 1, when a 90-day truce is due to expire, allowing US import duties on Chinese goods to increase sharply.

The US Treasury Department and Office of the US Trade Representative did not immediately respond to requests for comment.

The Chinese economy last year posted its slowest annual growth in nearly three decades, according to official figures published Monday in Beijing.

The trade war has weighed heavily on the outlook for the world's second-largest economy.

Already lower due to downgraded global economic forecasts, Wall Street fell even further after the reports were published, with the benchmark Dow Jones Industrial Average down 1.6 per cent shortly before 2000 GMT.

Soy and corn futures also fell on fears Beijing was less likely to resume imports.

The United States has rejected Beijing's offer to hold preparatory talks in Washington ahead of next week's high-level trade delegation, according to media reports.

The United States has rejected Beijing's offer to hold preparatory talks in Washington ahead of next week's high-level trade delegation, according to media reports. The reports by The Financial Times and CNBC sent US stocks sharply lower, reviving fears that efforts to resolve the US-China trade war could fail. Citing a lack of progress on some of the thorniest issues in the trade dispute -- including allegedly forced technology transfers and structural reforms to China's economy -- Washington cancelled plans for a face-to-face preparatory meeting this week, according to The Times. Chinese Vice Premier Liu He is due to travel to the United States next week as the two sides work to resolve their disagreements by March 1, when a 90-day truce is due to expire, allowing US import duties on Chinese goods to increase sharply. The US Treasury Department and Office of the US Trade Representative did not immediately respond to requests for comment. The Chinese economy last year posted its slowest annual growth in nearly three decades, according to official figures published Monday in Beijing. The trade war has weighed heavily on the outlook for the world's second-largest economy. Already lower due to downgraded global economic forecasts, Wall Street fell even further after the reports were published, with the benchmark Dow Jones Industrial Average down 1.6 per cent shortly before 2000 GMT. Soy and corn futures also fell on fears Beijing was less likely to resume imports.

US rejects advance trade meeting with China: Reports

The International Monetary Fund trimmed its global growth forecasts on Monday and a survey showed increasing pessimism among business chiefs as trade tensions and uncertainty loomed over the world's biggest annual gathering of the rich and powerful.

The gloomy IMF forecasts, released on the eve of the World Economic Forum in Davos, Switzerland, highlighted the challenges facing policymakers as they tackle an array of actual or potential crises, from the US-China trade war to Brexit.

"After two years of solid expansion, the world economy is growing more slowly than expected and risks are rising," IMF Managing Director Christine Lagarde told reporters.

"Does that mean a global recession is around the corner? No. But the risk of a sharper decline in global growth has certainly increased," she said, urging policymakers to brace for a "serious slowdown."

In its World Economic Outlook report released on Monday, the IMF predicted the global economy will grow at 3.5 per cent in 2019 and 3.6 per cent in 2020, down 0.2 and 0.1 percentage point respectively from last October's forecasts.

"There are so many variables and so much uncertainty globally, from the trade tension to geopolitical changes, so a lot of market activity and market sentiment are out of our control," Laura Cha, chair of the Hong Kong stock exchange, told Reuters Television.

The IMF downgrades mainly reflected signs of weakness in Europe, with its export powerhouse Germany hurt by new fuel emission standards for cars and with Italy under market pressure due to Rome's recent budget standoff with the European Union.

The global lender also cited a bigger-than-expected slowdown in China's economy and a possible "No Deal" Brexit as risks to its outlook, saying these could worsen market turbulence.

A survey by auditing and accounting giant <a href="http://www.wionews.com/business-economy/global-business-leaders-predict-fall-in-world-economic-growth-bet-heavy-on-artificial-intelligence-report-191914">PwC of nearly 1,400 chief executives</a> found that 29 per cent believe global economic growth will decline over the next 12 months, the highest percentage since 2012.

While the most pronounced shift was among business leaders in the United States, the share of CEOs who expected growth to slow increased significantly across every region, it showed.

"It's quite a reversal from last year and the gloomier mood cuts across just about everywhere in the world," said Bob Moritz, global chairman at PwC.

"With the rise of trade tension and protectionism, it stands to reason that confidence is waning."

Tim Ryan, US Chairman at PwC, told Reuters: “We were a little bit spoiled by the environment the past six to eight years after the financial crisis," describing an uncertain economy as the new normal.

"People are getting used to the volatility."

CHINA GLOOM WIDENS

Fears of a global slowdown have jolted markets and forced the US Federal Reserve Bank to signal a pause in its interest rate hike cycle, as investors fret about increasing weak signs in China and the fallout from Sino-US trade frictions.

Data released on Monday showed China's economy cooled in the fourth quarter on faltering domestic demand and bruising US tariffs, dragging 2018 growth to the lowest in nearly three decades.

"Sometimes we spook ourselves, so it remains to be seen how slow is slow, how bad is bad, let's see how the first quarter looks," said Cha.

Analysts polled by Reuters also saw a higher chance Japan will slide into a recession, keeping the country's central bank under pressure to maintain its massive stimulus.

The IMF cut its growth projections for the eurozone and developing countries while maintaining its forecast for a 2.5 per cent expansion in the United States this year.

It also kept its China growth forecast at 6.2 per cent in both 2019 and 2020 but said economic activity could miss expectations if trade tensions persist, even with state efforts to spur growth by boosting fiscal spending and bank lending.

"As seen in 2015–16, concerns about the health of China's economy can trigger abrupt, wide-reaching sell-offs in financial and commodity markets that place its trading partners, commodity exporters, and other emerging markets under pressure," it said.

Britain is expected to achieve 1.5 per cent growth this year though there is uncertainty over the projection, which is based on the assumption of an orderly exit from the EU, it said.

The International Monetary Fund trimmed its global growth forecasts on Monday and a survey showed increasing pessimism among business chiefs as trade tensions and uncertainty loomed over the world's biggest annual gathering of the rich and powerful.

The International Monetary Fund trimmed its global growth forecasts on Monday and a survey showed increasing pessimism among business chiefs as trade tensions and uncertainty loomed over the world's biggest annual gathering of the rich and powerful. The gloomy IMF forecasts, released on the eve of the World Economic Forum in Davos, Switzerland, highlighted the challenges facing policymakers as they tackle an array of actual or potential crises, from the US-China trade war to Brexit. "After two years of solid expansion, the world economy is growing more slowly than expected and risks are rising," IMF Managing Director Christine Lagarde told reporters. "Does that mean a global recession is around the corner? No. But the risk of a sharper decline in global growth has certainly increased," she said, urging policymakers to brace for a "serious slowdown." In its World Economic Outlook report released on Monday, the IMF predicted the global economy will grow at 3.5 per cent in 2019 and 3.6 per cent in 2020, down 0.2 and 0.1 percentage point respectively from last October's forecasts. "There are so many variables and so much uncertainty globally, from the trade tension to geopolitical changes, so a lot of market activity and market sentiment are out of our control," Laura Cha, chair of the Hong Kong stock exchange, told Reuters Television. The IMF downgrades mainly reflected signs of weakness in Europe, with its export powerhouse Germany hurt by new fuel emission standards for cars and with Italy under market pressure due to Rome's recent budget standoff with the European Union. The global lender also cited a bigger-than-expected slowdown in China's economy and a possible "No Deal" Brexit as risks to its outlook, saying these could worsen market turbulence. A survey by auditing and accounting giant PwC of nearly 1,400 chief executives found that 29 per cent believe global economic growth will decline over the next 12 months, the highest percentage since 2012. While the most pronounced shift was among business leaders in the United States, the share of CEOs who expected growth to slow increased significantly across every region, it showed. "It's quite a reversal from last year and the gloomier mood cuts across just about everywhere in the world," said Bob Moritz, global chairman at PwC. "With the rise of trade tension and protectionism, it stands to reason that confidence is waning." Tim Ryan, US Chairman at PwC, told Reuters: “We were a little bit spoiled by the environment the past six to eight years after the financial crisis," describing an uncertain economy as the new normal. "People are getting used to the volatility." CHINA GLOOM WIDENS Fears of a global slowdown have jolted markets and forced the US Federal Reserve Bank to signal a pause in its interest rate hike cycle, as investors fret about increasing weak signs in China and the fallout from Sino-US trade frictions. Data released on Monday showed China's economy cooled in the fourth quarter on faltering domestic demand and bruising US tariffs, dragging 2018 growth to the lowest in nearly three decades. "Sometimes we spook ourselves, so it remains to be seen how slow is slow, how bad is bad, let's see how the first quarter looks," said Cha. Analysts polled by Reuters also saw a higher chance Japan will slide into a recession, keeping the country's central bank under pressure to maintain its massive stimulus. The IMF cut its growth projections for the eurozone and developing countries while maintaining its forecast for a 2.5 per cent expansion in the United States this year. It also kept its China growth forecast at 6.2 per cent in both 2019 and 2020 but said economic activity could miss expectations if trade tensions persist, even with state efforts to spur growth by boosting fiscal spending and bank lending. "As seen in 2015–16, concerns about the health of China's economy can trigger abrupt, wide-reaching sell-offs in financial and commodity markets that place its trading partners, commodity exporters, and other emerging markets under pressure," it said. Britain is expected to achieve 1.5 per cent growth this year though there is uncertainty over the projection, which is based on the assumption of an orderly exit from the EU, it said.

IMF chief rules out imminent global recession, anticipates sharper decline in global growth

<a href="http://www.wionews.com/business-economy/fpis-turn-net-sellers-in-january-withdraw-rs-3600-cr-in-just-9-sessions-189987">Foreign investors</a> have pulled out more than Rs 4,000 crore from the Indian capital markets so far in January, highlighting their cautious stance towards the country.

This comes following a collective net inflow of over Rs 17,000 crore in the capital markets — both equity and debt — by Foreign Portfolio Investors (FPIs) during November and December.

Prior to that, they had pulled out a massive Rs 38,905 crore in October.

According to data available with the depositories, FPIs withdrew a net amount of Rs 3,987 crore from equities and a net sum of Rs 53 crore from the debt market, taking the total outflow to Rs 4,040 crore during January 1-18.

Market experts believe that FPIs are continuing with their 'wait and watch' approach towards India.

Going ahead, the focus would be on the budget, progress on the economic growth front and general elections, they added.

Other factors such as movement in crude prices and currency as well as <a href="http://www.wionews.com/world/no-breakthrough-in-us-china-trade-talks-trump-adviser-191392">US-China trade relations</a> will also play a role in FPI flows, they added.

Harsh Jain, COO at Groww, an online MF investment platform, said 2019 is likely to see a lot of volatility because of the rate hikes and dollar instability, but the Indian markets may be able to weather the storm.

"India offers better investment opportunities due to consistent growth, supportive global factors and attract valuations. We should expect positive inflow in coming months," he added.&nbsp;

Market experts believe that FPIs are continuing with their 'wait and watch' approach towards India.

Foreign investors have pulled out more than Rs 4,000 crore from the Indian capital markets so far in January, highlighting their cautious stance towards the country. This comes following a collective net inflow of over Rs 17,000 crore in the capital markets — both equity and debt — by Foreign Portfolio Investors (FPIs) during November and December. Prior to that, they had pulled out a massive Rs 38,905 crore in October. According to data available with the depositories, FPIs withdrew a net amount of Rs 3,987 crore from equities and a net sum of Rs 53 crore from the debt market, taking the total outflow to Rs 4,040 crore during January 1-18. Market experts believe that FPIs are continuing with their 'wait and watch' approach towards India. Going ahead, the focus would be on the budget, progress on the economic growth front and general elections, they added. Other factors such as movement in crude prices and currency as well as US-China trade relations will also play a role in FPI flows, they added. Harsh Jain, COO at Groww, an online MF investment platform, said 2019 is likely to see a lot of volatility because of the rate hikes and dollar instability, but the Indian markets may be able to weather the storm. "India offers better investment opportunities due to consistent growth, supportive global factors and attract valuations. We should expect positive inflow in coming months," he added.

FPI outflow crosses Rs 4,000 crore in January so far

US President Donald Trump said on Saturday there has been progress toward a trade deal with China, but denied that he was considering lifting tariffs on Chinese imports.

"Things are going very well with China and with trade," he told reporters at the White House, adding that he had seen some "false reports" indicating that US tariffs on Chinese products would be lifted.

"If we make a deal certainly we would not have sanctions and if we don't make a deal we will," Trump said. "We’ve really had a very extraordinary number of meetings and a deal could very well happen with China. It’s going well. I would say about as well as it could possibly go."

Chinese Vice Premier Liu He will visit the United States on Jan. 30 and 31 for the next round of trade negotiations with Washington.

That follows lower-level negotiations held in Beijing last week to resolve the bitter dispute between the world's two largest economies by March 2, when the Trump administration is scheduled to increase tariffs on $200 billion worth of Chinese goods.

According to sources briefed on the ongoing negotiations, cited exclusively by Reuters on Friday, the United States is pushing for regular reviews of China's progress on pledged trade reforms as a condition for a trade deal - and could again resort to tariffs if it deems Beijing has violated the agreement.

"The threat of tariffs is not going away, even if there is a deal," said one of three sources briefed on the talks who spoke with Reuters on condition of anonymity.

Chinese negotiators were not keen on the idea of regular compliance checks, the source said, but the US&nbsp;proposal "didn't derail negotiations."

A Chinese source said the United States wants “periodic assessments” but it was not yet clear how often.

“It looks like humiliation," the source said. "But perhaps the two sides could find a way to save face for the Chinese government."

The Trump administration has imposed import tariffs on Chinese goods to put pressure on Beijing to meet a long list of demands that would rewrite the terms of trade between the two countries.

The demands include changes to China's policies on intellectual property protection, technology transfers, industrial subsidies and other trade barriers.

US President Donald Trump said on Saturday there has been progress toward a trade deal with China, but denied that he was considering lifting tariffs on Chinese imports.

US President Donald Trump said on Saturday there has been progress toward a trade deal with China, but denied that he was considering lifting tariffs on Chinese imports. "Things are going very well with China and with trade," he told reporters at the White House, adding that he had seen some "false reports" indicating that US tariffs on Chinese products would be lifted. "If we make a deal certainly we would not have sanctions and if we don't make a deal we will," Trump said. "We’ve really had a very extraordinary number of meetings and a deal could very well happen with China. It’s going well. I would say about as well as it could possibly go." Chinese Vice Premier Liu He will visit the United States on Jan. 30 and 31 for the next round of trade negotiations with Washington. That follows lower-level negotiations held in Beijing last week to resolve the bitter dispute between the world's two largest economies by March 2, when the Trump administration is scheduled to increase tariffs on $200 billion worth of Chinese goods. According to sources briefed on the ongoing negotiations, cited exclusively by Reuters on Friday, the United States is pushing for regular reviews of China's progress on pledged trade reforms as a condition for a trade deal - and could again resort to tariffs if it deems Beijing has violated the agreement. "The threat of tariffs is not going away, even if there is a deal," said one of three sources briefed on the talks who spoke with Reuters on condition of anonymity. Chinese negotiators were not keen on the idea of regular compliance checks, the source said, but the US proposal "didn't derail negotiations." A Chinese source said the United States wants “periodic assessments” but it was not yet clear how often. “It looks like humiliation," the source said. "But perhaps the two sides could find a way to save face for the Chinese government." The Trump administration has imposed import tariffs on Chinese goods to put pressure on Beijing to meet a long list of demands that would rewrite the terms of trade between the two countries. The demands include changes to China's policies on intellectual property protection, technology transfers, industrial subsidies and other trade barriers.

We had extraordinary number of meetings and trade deal could very well happen with China: Trump

By Christopher Dent

The clock is ticking for China and the US to resolve their trade dispute. Some progress was made at the last round of talks (January 7-9) but negotiators must find a comprehensive agreement by March 2.&nbsp;

If they fail, the US government plans to raise tariffs from 10 per cent to 25 per cent on $200 billion of Chinese imports. This would have an enormous impact not just on US-China bilateral trade but also on many other countries due to global supply chain linkages.

The US president, Donald Trump, wishes to adjust the “terms of trade” between both countries, addressing what he alleges are China’s “unfair” trading practices. Many observers believe this is a battle not just about trade but also about economic and technological supremacy.

The Trump administration accuses China of stealing technology from American companies. It has also been critical of the Chinese government’s strategic plans to make the country a world leader in industry sectors such as aerospace, renewable energy, robotics and electric vehicles. The recent successful landing of a Chinese spacecraft on the Moon would have caused further consternation among Americans fearful of China’s new technological capacities.

The US says it wants China to become a free market economy and ditch its state management approach. Ironically, the credibility of America’s position on this matter is undermined by Trump’s own protectionist stance on trade, which itself constitutes significant state intervention in the marketplace.

But, despite their political and economic differences, the reality is that the US and China’s economies are deeply interconnected through various layers of commercial, financial and production links. The two are so entwined that they have been dubbed a symbiotic “Chimerica” economy.

Economic interdependence

US-China economic interdependence has to be carefully managed and many companies are critical of the Trump administration’s decision to raise tariffs. They rightly warn that aggressive US actions against China will ultimately harm American firms, workers and consumers. What’s more, the world’s two largest national economies lie at the core of an ever more integrated global economy. Any significant disruption to their relationship will have major ramifications for businesses worldwide.

From his actions and tweeted thinking to date, it appears that Trump is failing to acknowledge the extent of US-China economic interdependence, or is choosing to ignore it. While the US trade deficit of $336 billion with China in 2017 is at some level a cause for concern, China recycles much of its surplus back through buying US government securities.

Taking the car industry as an example, we can reasonably assume that Trump wishes to see more cars made by Ford, General Motors and other American firms in the US, which get sold both at home and in foreign markets. Ideally, in Trump’s view, they would also be sourcing materials and parts from US-based companies, thus overall generating more jobs and prosperity for Americans. But this cannot be sustainably achieved through protectionist trade measures.

Trump’s adoption of a defensive economic nationalist position and a simplistic “imports bad, exports good” mindset chimes with a 19th-century view of the world economy. Then it was the norm for companies to organise production in one nation and simply export from it. Today, technological advances mean companies increasingly organise their production across nations, mainly for reasons of cost efficiency, making goods cheaper to buy and providing wider consumer choice. In many of the world’s major industries, it makes no economic sense today to do otherwise.

Competitive advantage

For companies, the ultimate arbiter of success is the consumer. The fundamental reason why the sales of American car manufacturers have fallen over the years – both at home and in export markets – is not due to “unfair” trade practices but because they lack competitiveness. The same logic applies to other industries.

Sales of foreign cars in Japan illustrates this. While the Japanese car market is hard for foreign firms to penetrate, Japan does not apply import tariffs in this sector. So both European and US firms face the same challenges in satisfying the discerning Japanese consumer.

From 2013 to 2016, Japan’s imports of US cars fell from 23,381 to 19,933, whereas imports of European vehicles increased from 239,090 to 251,155. If Trump wishes American car makers to expand production and exports, they need to produce more competitive and desirable products.

Sometimes, this is extraordinarily difficult to achieve in industries experiencing deep structural decline, such as the US steel sector. There are, of course, many other sectors where American firms have developed a competitive advantage over their foreign rivals, such as cinema and television shows, popular culture, financial services and university education.

Higher tariffs on US imports of goods from China and other countries will in most cases be passed on as higher prices to American consumers, raising inflation and, in turn, interest rates. One of the ironies of imposing import tariffs on goods from China is that a high volume of these will come from US companies such as Apple and Dell, which assemble their products cost competitively in China, then export them to US consumers. Trump calls for these firms to relocate their production back to the US, but comparatively much higher labour and other costs would lead to higher prices for consumers and inflation.

It is time for the US president to end his short-sighted and self-harming trade policies, and fully appreciate the inter-connected nature of the 21st-century global economy and society. The future health of the global economy depends on a good working partnership between the US and China. Both countries must quickly end this trade war and focus instead on establishing more harmonious relations – for all our sakes.

(Christopher Dent is Senior Lecturer, Edge Hill University)

(This article was originally published on The Conversation. Read the <a href="https://theconversation.com/why-there-will-be-no-winners-from-the-us-china-trade-war-109822">original article</a>)

(Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL)

&nbsp;

By Christopher Dent The clock is ticking for China and the US to resolve their trade dispute. Some progress was made at the last round of talks (January 7-9) but negotiators must find a comprehensive agreement by March 2.

By Christopher Dent The clock is ticking for China and the US to resolve their trade dispute. Some progress was made at the last round of talks (January 7-9) but negotiators must find a comprehensive agreement by March 2. If they fail, the US government plans to raise tariffs from 10 per cent to 25 per cent on $200 billion of Chinese imports. This would have an enormous impact not just on US-China bilateral trade but also on many other countries due to global supply chain linkages. The US president, Donald Trump, wishes to adjust the “terms of trade” between both countries, addressing what he alleges are China’s “unfair” trading practices. Many observers believe this is a battle not just about trade but also about economic and technological supremacy. The Trump administration accuses China of stealing technology from American companies. It has also been critical of the Chinese government’s strategic plans to make the country a world leader in industry sectors such as aerospace, renewable energy, robotics and electric vehicles. The recent successful landing of a Chinese spacecraft on the Moon would have caused further consternation among Americans fearful of China’s new technological capacities. The US says it wants China to become a free market economy and ditch its state management approach. Ironically, the credibility of America’s position on this matter is undermined by Trump’s own protectionist stance on trade, which itself constitutes significant state intervention in the marketplace. But, despite their political and economic differences, the reality is that the US and China’s economies are deeply interconnected through various layers of commercial, financial and production links. The two are so entwined that they have been dubbed a symbiotic “Chimerica” economy. Economic interdependence US-China economic interdependence has to be carefully managed and many companies are critical of the Trump administration’s decision to raise tariffs. They rightly warn that aggressive US actions against China will ultimately harm American firms, workers and consumers. What’s more, the world’s two largest national economies lie at the core of an ever more integrated global economy. Any significant disruption to their relationship will have major ramifications for businesses worldwide. From his actions and tweeted thinking to date, it appears that Trump is failing to acknowledge the extent of US-China economic interdependence, or is choosing to ignore it. While the US trade deficit of $336 billion with China in 2017 is at some level a cause for concern, China recycles much of its surplus back through buying US government securities. Taking the car industry as an example, we can reasonably assume that Trump wishes to see more cars made by Ford, General Motors and other American firms in the US, which get sold both at home and in foreign markets. Ideally, in Trump’s view, they would also be sourcing materials and parts from US-based companies, thus overall generating more jobs and prosperity for Americans. But this cannot be sustainably achieved through protectionist trade measures. Trump’s adoption of a defensive economic nationalist position and a simplistic “imports bad, exports good” mindset chimes with a 19th-century view of the world economy. Then it was the norm for companies to organise production in one nation and simply export from it. Today, technological advances mean companies increasingly organise their production across nations, mainly for reasons of cost efficiency, making goods cheaper to buy and providing wider consumer choice. In many of the world’s major industries, it makes no economic sense today to do otherwise. Competitive advantage For companies, the ultimate arbiter of success is the consumer. The fundamental reason why the sales of American car manufacturers have fallen over the years – both at home and in export markets – is not due to “unfair” trade practices but because they lack competitiveness. The same logic applies to other industries. Sales of foreign cars in Japan illustrates this. While the Japanese car market is hard for foreign firms to penetrate, Japan does not apply import tariffs in this sector. So both European and US firms face the same challenges in satisfying the discerning Japanese consumer. From 2013 to 2016, Japan’s imports of US cars fell from 23,381 to 19,933, whereas imports of European vehicles increased from 239,090 to 251,155. If Trump wishes American car makers to expand production and exports, they need to produce more competitive and desirable products. Sometimes, this is extraordinarily difficult to achieve in industries experiencing deep structural decline, such as the US steel sector. There are, of course, many other sectors where American firms have developed a competitive advantage over their foreign rivals, such as cinema and television shows, popular culture, financial services and university education. Higher tariffs on US imports of goods from China and other countries will in most cases be passed on as higher prices to American consumers, raising inflation and, in turn, interest rates. One of the ironies of imposing import tariffs on goods from China is that a high volume of these will come from US companies such as Apple and Dell, which assemble their products cost competitively in China, then export them to US consumers. Trump calls for these firms to relocate their production back to the US, but comparatively much higher labour and other costs would lead to higher prices for consumers and inflation. It is time for the US president to end his short-sighted and self-harming trade policies, and fully appreciate the inter-connected nature of the 21st-century global economy and society. The future health of the global economy depends on a good working partnership between the US and China. Both countries must quickly end this trade war and focus instead on establishing more harmonious relations – for all our sakes. (Christopher Dent is Senior Lecturer, Edge Hill University) (This article was originally published on The Conversation. Read the original article) (Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL)

Why there will be no winners from the US-China trade war

The pound edged down Wednesday after the record defeat of British Prime Minister Theresa May's Brexit plan but mostly held its ground as investors consider the next likely developments in the long-running saga.

The sterling tanked to a near two-year low soon after the government's proposal on leaving the European Union was soundly beaten Tuesday evening, but it soon bounced back as traders bet there would not be a "no-deal" exit.

And while it was slightly lower in Asia, <a href="http://www.wionews.com/opinions/why-brexit-is-causing-turmoil-for-the-pound-and-other-markets-189974">the pound managed to avoid the sort of pummelling</a> many had predicted, and analysts say the positive news is that the options for the future are narrowing.

With May expected to win a vote of no confidence called by the opposition Labour Party on Wednesday, the talk will move to what happens next.

Analysts say May could ask to delay Britain's March 29 exit from the bloc as she looks for a more palatable agreement from her EU peers, while there is growing speculation of a general election and even another referendum.

"Momentum is shifting away from the harder Brexit route and towards a number of options ranging from postponement and second referendum. That is pound supportive," said Gavin Friend at National Australia Bank.

But he added: "I don't see the pound rallying much until markets are sure the (ruling) Conservatives have seen off the confidence motion."

Meanwhile, London may still leave the bloc without a backup.

"We cannot ignore the fact that it takes very little effort for no-deal, whilst it takes a vast amount of effort to avoid it," warned Neil Wilson, chief market analyst at Markets.com.

<a href="http://www.wionews.com/business-economy/global-markets-china-trade-shock-rattles-european-stocks-commodities-190200">Asian equity markets</a> mostly rose after Tuesday's rally that was fuelled by Chinese plans to cut taxes in a bid to support the stuttering economy.

However, traders are growing increasingly worried about the lack of movement in the US over the government shutdown, which is now in its fourth week, with both sides digging their heels in.

Tokyo ended off 0.6 per cent, but Hong Kong rose 0.2 per cent to build on Tuesday's two per cent rally while Shanghai was flat.

Sydney and Seoul each rose 0.4 per cent, while Singapore added 0.3 per cent and Wellington put on 0.7 per cent with Mumbai 0.2 per cent higher.

Investors are now gearing up for the start of the corporate earnings season and some are concerned that the effects of recent soft economic data globally — as well as the China-US trade war — will begin to show up in accounts.

While it was slightly lower in Asia, the pound managed to avoid the sort of pummelling many had predicted.

The pound edged down Wednesday after the record defeat of British Prime Minister Theresa May's Brexit plan but mostly held its ground as investors consider the next likely developments in the long-running saga. The sterling tanked to a near two-year low soon after the government's proposal on leaving the European Union was soundly beaten Tuesday evening, but it soon bounced back as traders bet there would not be a "no-deal" exit. And while it was slightly lower in Asia, the pound managed to avoid the sort of pummelling many had predicted, and analysts say the positive news is that the options for the future are narrowing. With May expected to win a vote of no confidence called by the opposition Labour Party on Wednesday, the talk will move to what happens next. Analysts say May could ask to delay Britain's March 29 exit from the bloc as she looks for a more palatable agreement from her EU peers, while there is growing speculation of a general election and even another referendum. "Momentum is shifting away from the harder Brexit route and towards a number of options ranging from postponement and second referendum. That is pound supportive," said Gavin Friend at National Australia Bank. But he added: "I don't see the pound rallying much until markets are sure the (ruling) Conservatives have seen off the confidence motion." Meanwhile, London may still leave the bloc without a backup. "We cannot ignore the fact that it takes very little effort for no-deal, whilst it takes a vast amount of effort to avoid it," warned Neil Wilson, chief market analyst at Markets.com. Asian equity markets mostly rose after Tuesday's rally that was fuelled by Chinese plans to cut taxes in a bid to support the stuttering economy. However, traders are growing increasingly worried about the lack of movement in the US over the government shutdown, which is now in its fourth week, with both sides digging their heels in. Tokyo ended off 0.6 per cent, but Hong Kong rose 0.2 per cent to build on Tuesday's two per cent rally while Shanghai was flat. Sydney and Seoul each rose 0.4 per cent, while Singapore added 0.3 per cent and Wellington put on 0.7 per cent with Mumbai 0.2 per cent higher. Investors are now gearing up for the start of the corporate earnings season and some are concerned that the effects of recent soft economic data globally — as well as the China-US trade war — will begin to show up in accounts.

Pound stands firm after May loss, Asian equity markets rise

China and the United States want to work together on trade, the Chinese foreign ministry said on Monday, as the world's two largest economies resumed talks in a bid to end their trade dispute.

US&nbsp;officials are meeting their counterparts in Beijing this week for the first face-to-face talks since US&nbsp;President Donald Trump and China's President Xi Jinping agreed in December agreed to a 90-day truce in a trade war that has roiled international markets.

Trump said on Sunday that trade talks with China were going very well and that weakness in the Chinese economy gave Beijing a reason to work toward a deal.

The two sides agreed to hold "positive and constructive" talks and dialogue to resolve economic and trade disputes in accordance with the consensus reached by the countries' leaders, Lu Kang, a spokesman at the foreign ministry, told reporters.

"From the beginning, we have believed that China-US&nbsp;trade friction is not a positive situation for either country or the world economy. China has a good faith, on the basis of mutual respect and equality, to resolve the bilateral trade frictions," Lu said.

Trump imposed import tariffs on hundreds of billions of dollars of Chinese goods last year and has threatened more to pressure Beijing to change its practices on issues ranging from industrial subsidies to intellectual property to hacking. China retaliated with tariffs of its own.

"As for whether the Chinese economy is good or not, I have already explained this. China's development has ample tenacity and huge potential," Lu said. "We have firm confidence in the strong long-term fundamentals of the Chinese economy."

China and the United States want to work together on trade, the Chinese foreign ministry said on Monday, as the world's two largest economies resumed talks in a bid to end their trade dispute.

China and the United States want to work together on trade, the Chinese foreign ministry said on Monday, as the world's two largest economies resumed talks in a bid to end their trade dispute. US officials are meeting their counterparts in Beijing this week for the first face-to-face talks since US President Donald Trump and China's President Xi Jinping agreed in December agreed to a 90-day truce in a trade war that has roiled international markets. Trump said on Sunday that trade talks with China were going very well and that weakness in the Chinese economy gave Beijing a reason to work toward a deal. The two sides agreed to hold "positive and constructive" talks and dialogue to resolve economic and trade disputes in accordance with the consensus reached by the countries' leaders, Lu Kang, a spokesman at the foreign ministry, told reporters. "From the beginning, we have believed that China-US trade friction is not a positive situation for either country or the world economy. China has a good faith, on the basis of mutual respect and equality, to resolve the bilateral trade frictions," Lu said. Trump imposed import tariffs on hundreds of billions of dollars of Chinese goods last year and has threatened more to pressure Beijing to change its practices on issues ranging from industrial subsidies to intellectual property to hacking. China retaliated with tariffs of its own. "As for whether the Chinese economy is good or not, I have already explained this. China's development has ample tenacity and huge potential," Lu said. "We have firm confidence in the strong long-term fundamentals of the Chinese economy."

Want to work together with US on trade: China foreign ministry

Apple Inc&nbsp;on Wednesday took the rare step of cutting its quarterly sales forecast, with Chief Executive Tim Cook blaming slowing iPhone sales in China, whose economy has been dragged down by uncertainty around U.S.-China trade relations.

The news sent Apple shares tumbling in after-hours trade and triggered a broader selloff in the stock market.

The revenue cut for the just-ended quarter raises questions about whether Apple, the face of American business in many parts of the world, is being punished by Chinese officials or consumers in favour of local rivals such as Huawei Technology Cos Ltd, whose pricey smartphones compete with the iPhone and which has been under discussion by the Trump administration for a possible sales ban over suggestions that its telecommunications equipment could be used to spy on Americans.

Cook told CNBC that Apple products have not been targeted by the Chinese government, though some consumers may have elected not to buy an iPhone or other Apple device because it is an American company.

“The much larger issue is the slowing of the (Chinese) economy, and then the trade tension that has further pressured it,” Cook said.

Some analysts, however, questioned the impact of Apple's own actions, such as its unyielding pursuit of high selling prices for its products.

Apple on Wednesday lowered its forecast to $84 billion in revenue for its fiscal first quarter ended December 29, below analysts' estimate of $91.5 billion, according to IBES data from Refinitiv. Apple originally forecasts revenue of between $89 billion and $93 billion.

"While we anticipated some challenges in key emerging markets, we did not foresee the magnitude of the economic deceleration, particularly in Greater China," Cook said in a letter to investors. "In fact, most of our revenue shortfall to our guidance, and over 100 per cent of our year-over-year worldwide revenue decline occurred in Greater China across iPhone, Mac and iPad."

Wednesday was the first time that Apple issued a warning on its revenue guidance ahead of releasing quarterly results since the iPhone was launched in 2007.

Apple shares skidded 7.7 per cent in after-hours trade, dragging the company's market value below $700 billion. In the broader market, the S&amp;P 500 futures&nbsp;fell 1.5 per cent. In the US government bond market, a typical safe-haven, the yield on the benchmark 10- year, which moves inversely to the bond's price, sank to an 11-month low.

Precursors to a warning

Apple's move was not entirely a surprise. In November, the Cupertino, California-based company said it would quit disclosing unit sales data for iPhones and other hardware items, leading many analysts to worry that a drop in iPhone sales was coming. And after several component makers in November forecast weaker-than-expected sales, some market watchers called the peak for iPhones in several key markets.

In November, Cook cited slowing growth in emerging markets such as Brazil, India and Russia for lower-than-anticipated sales estimates for the company's fiscal first quarter. But Cook specifically said he "would not put China in that category" of countries with troubled growth.

That all came before the damage to the Chinese economy from trade tensions with the United States and long-simmering structural issues became evident.

Apple is now the highest-profile multinational corporation to warn that the economic slowdown in China could hurt its business. Automakers such as Ford Motor Co, Hyundai Motor Co and Nissan Motor Co all previously said they planned to cut production in the country.

But Apple has held firm on its premium pricing strategy in China despite the risk of a slower economy.

"The question for investors will be the extent to which Apple’s aggressive pricing has exacerbated this situation and what this means for the company’s longer-term pricing power within its iPhone franchise," James Cordwell, an analyst at Atlantic Equities, told Reuters.

In the latest fiscal year, ended Sept. 29, unit sales of the iPhone were essentially flat from the prior year, while iPhone revenue expanded 18 per cent to $166.7 billion. That growth came entirely from higher prices.

Hal Eddins, chief economist at Apple shareholder Capital Investment Counsel, said Cook's comments on the impact of the U.S. trade tensions with China "might be a dig at (US&nbsp;President Donald) Trump, but mostly he may be using the trade turmoil as an excuse for some missteps they’ve made over the last year."

But some investors were heartened by Apple's plans on using its cash pile.

In his letter, Cook said Apple has $130 billion in net cash and that it intends to continue its efforts to reduce that cash balance to net zero, which the company has so far accomplished through dividend increases and share buybacks.

"We would anticipate the company increasing share buybacks on the weakness to return capital to shareholders at discount prices," said Trip Miller, managing partner at Apple shareholder Gullane Capital Partners.

The news sent Apple shares tumbling in after-hours trade and triggered a broader selloff in the stock market.

Apple Inc on Wednesday took the rare step of cutting its quarterly sales forecast, with Chief Executive Tim Cook blaming slowing iPhone sales in China, whose economy has been dragged down by uncertainty around U.S.-China trade relations. The news sent Apple shares tumbling in after-hours trade and triggered a broader selloff in the stock market. The revenue cut for the just-ended quarter raises questions about whether Apple, the face of American business in many parts of the world, is being punished by Chinese officials or consumers in favour of local rivals such as Huawei Technology Cos Ltd, whose pricey smartphones compete with the iPhone and which has been under discussion by the Trump administration for a possible sales ban over suggestions that its telecommunications equipment could be used to spy on Americans. Cook told CNBC that Apple products have not been targeted by the Chinese government, though some consumers may have elected not to buy an iPhone or other Apple device because it is an American company. “The much larger issue is the slowing of the (Chinese) economy, and then the trade tension that has further pressured it,” Cook said. Some analysts, however, questioned the impact of Apple's own actions, such as its unyielding pursuit of high selling prices for its products. Apple on Wednesday lowered its forecast to $84 billion in revenue for its fiscal first quarter ended December 29, below analysts' estimate of $91.5 billion, according to IBES data from Refinitiv. Apple originally forecasts revenue of between $89 billion and $93 billion. "While we anticipated some challenges in key emerging markets, we did not foresee the magnitude of the economic deceleration, particularly in Greater China," Cook said in a letter to investors. "In fact, most of our revenue shortfall to our guidance, and over 100 per cent of our year-over-year worldwide revenue decline occurred in Greater China across iPhone, Mac and iPad." Wednesday was the first time that Apple issued a warning on its revenue guidance ahead of releasing quarterly results since the iPhone was launched in 2007. Apple shares skidded 7.7 per cent in after-hours trade, dragging the company's market value below $700 billion. In the broader market, the S&P 500 futures fell 1.5 per cent. In the US government bond market, a typical safe-haven, the yield on the benchmark 10- year, which moves inversely to the bond's price, sank to an 11-month low. Precursors to a warning Apple's move was not entirely a surprise. In November, the Cupertino, California-based company said it would quit disclosing unit sales data for iPhones and other hardware items, leading many analysts to worry that a drop in iPhone sales was coming. And after several component makers in November forecast weaker-than-expected sales, some market watchers called the peak for iPhones in several key markets. In November, Cook cited slowing growth in emerging markets such as Brazil, India and Russia for lower-than-anticipated sales estimates for the company's fiscal first quarter. But Cook specifically said he "would not put China in that category" of countries with troubled growth. That all came before the damage to the Chinese economy from trade tensions with the United States and long-simmering structural issues became evident. Apple is now the highest-profile multinational corporation to warn that the economic slowdown in China could hurt its business. Automakers such as Ford Motor Co, Hyundai Motor Co and Nissan Motor Co all previously said they planned to cut production in the country. But Apple has held firm on its premium pricing strategy in China despite the risk of a slower economy. "The question for investors will be the extent to which Apple’s aggressive pricing has exacerbated this situation and what this means for the company’s longer-term pricing power within its iPhone franchise," James Cordwell, an analyst at Atlantic Equities, told Reuters. In the latest fiscal year, ended Sept. 29, unit sales of the iPhone were essentially flat from the prior year, while iPhone revenue expanded 18 per cent to $166.7 billion. That growth came entirely from higher prices. Hal Eddins, chief economist at Apple shareholder Capital Investment Counsel, said Cook's comments on the impact of the U.S. trade tensions with China "might be a dig at (US President Donald) Trump, but mostly he may be using the trade turmoil as an excuse for some missteps they’ve made over the last year." But some investors were heartened by Apple's plans on using its cash pile. In his letter, Cook said Apple has $130 billion in net cash and that it intends to continue its efforts to reduce that cash balance to net zero, which the company has so far accomplished through dividend increases and share buybacks. "We would anticipate the company increasing share buybacks on the weakness to return capital to shareholders at discount prices," said Trip Miller, managing partner at Apple shareholder Gullane Capital Partners.

Apple cuts forecast, citing weak China sales amid trade tensions

US President Donald Trump said on Twitter on Saturday that he had a "long and very good call" with Chinese President Xi Jinping and that a possible trade deal between the United States and China was progressing well.

As a partial shutdown of the US government entered its eighth day, with no quick end in sight, the Republican president was in Washington, sending out tweets attacking Democrats and talking up possibly improved relations with China.

The two nations have been in a trade war for much of 2018 that has seen the flow of hundreds of billions of dollars worth of goods between the world's two largest economies disrupted by tariffs.

Trump and Xi agreed to a ceasefire in the trade war, agreeing to hold off on imposing more tariffs for 90 days starting December 1 while they negotiate a deal to end the dispute following months of escalating tensions.

"Just had a long and very good call with President Xi of China," Trump wrote. "Deal is moving along very well. If made, it will be very comprehensive, covering all subjects, areas and points of dispute. Big progress being made!"

Chinese state media also said Xi and Trump spoke on Saturday, and quoted Xi as saying that teams from both countries have been working to implement a consensus reached with Trump.

Chinese media also quoted Xi as saying that he hopes both sides can meet each other half way and reach an agreement that is mutually beneficial as soon as possible.

Having canceled his plans to travel to his estate in Florida for the holidays because of the government shutdown that started on December 22, Trump tweeted, "I am in the White House waiting for the Democrats to come on over and make a deal."

The Republican-controlled Congress was closed for the weekend and few lawmakers were in the capital.

The shutdown, affecting about one-quarter of the federal government including 800,000 or so workers, began when funding for several agencies expired.

Congress must pass legislation to restore that funding, but has not done so due to a dispute over Trump's demand that the bill include $5 billion in taxpayer money to help pay for a wall he wants to build along the US-Mexico border.

As a partial shutdown of the US government entered its eighth day, with no quick end in sight, the Republican president was in Washington, sending out tweets attacking Democrats and talking up possibly improved relations with China.

US President Donald Trump said on Twitter on Saturday that he had a "long and very good call" with Chinese President Xi Jinping and that a possible trade deal between the United States and China was progressing well. As a partial shutdown of the US government entered its eighth day, with no quick end in sight, the Republican president was in Washington, sending out tweets attacking Democrats and talking up possibly improved relations with China. The two nations have been in a trade war for much of 2018 that has seen the flow of hundreds of billions of dollars worth of goods between the world's two largest economies disrupted by tariffs. Trump and Xi agreed to a ceasefire in the trade war, agreeing to hold off on imposing more tariffs for 90 days starting December 1 while they negotiate a deal to end the dispute following months of escalating tensions. "Just had a long and very good call with President Xi of China," Trump wrote. "Deal is moving along very well. If made, it will be very comprehensive, covering all subjects, areas and points of dispute. Big progress being made!" Chinese state media also said Xi and Trump spoke on Saturday, and quoted Xi as saying that teams from both countries have been working to implement a consensus reached with Trump. Chinese media also quoted Xi as saying that he hopes both sides can meet each other half way and reach an agreement that is mutually beneficial as soon as possible. Having canceled his plans to travel to his estate in Florida for the holidays because of the government shutdown that started on December 22, Trump tweeted, "I am in the White House waiting for the Democrats to come on over and make a deal." The Republican-controlled Congress was closed for the weekend and few lawmakers were in the capital. The shutdown, affecting about one-quarter of the federal government including 800,000 or so workers, began when funding for several agencies expired. Congress must pass legislation to restore that funding, but has not done so due to a dispute over Trump's demand that the bill include $5 billion in taxpayer money to help pay for a wall he wants to build along the US-Mexico border.

Big progress being made on Trade: Donald Trump after 'long call' with Chinese President Xi

China's customs administration announced Friday it had approved US rice imports, a move that comes during a 90-day tariff truce between the two countries which are engaged in a bruising trade war.

US rice that meets inspection and quarantine requirements will be allowed to enter the country, according to a notice released by China's customs authority.&nbsp;

Requirements for US rice exporters include registration with the US Department of Agriculture and adherence to US and Chinese phytosanitary laws and regulations, which are aimed at protecting against plant diseases.

The approval comes more than a year after the two countries agreed on a phytosanitary protocol that would allow US rice imports in China for the first time.

According to a 2017 statement by the US Department of Agriculture, which praised the Chinese market as "an exceptional opportunity" for the US rice industry, the agreement had "been in the works for more than a decade".

US President Donald Trump and Chinese leader Xi Jinping agreed on the sidelines of the G20 summit in Buenos Aires at the start of December to a 90-day truce while they try to find a solution to the escalating trade dispute.

Trump is seeking a massive reduction in the US trade deficit with China and deeper reforms to open the economy to foreign companies.

Earlier this month, China's major state-owned grain stockpiler said it had resumed buying US soybeans, and Beijing announced it would suspend extra tariffs added to US-made cars and auto parts starting January 1.

China is also targeting intellectual property theft in the country -- one of the main sticking points in the dispute with the US.

On Sunday, a meeting of the Standing Committee of the National People's Congress (NPC, China's legislature) saw a draft law that would allow IP theft victims to claim "punitive damages".

Maintaining and resolving the trade truce could help stabilise sentiment in China, where confidence in the economy has been hurt by the trade frictions with its key trade partner.

China said Thursday that trade negotiators from China and the US are planning to meet in January for talks. 
&nbsp;

US rice that meets inspection and quarantine requirements will be allowed to enter the country, according to a notice by China's customs authority released Friday and dated December 27.

China's customs administration announced Friday it had approved US rice imports, a move that comes during a 90-day tariff truce between the two countries which are engaged in a bruising trade war. US rice that meets inspection and quarantine requirements will be allowed to enter the country, according to a notice released by China's customs authority. Requirements for US rice exporters include registration with the US Department of Agriculture and adherence to US and Chinese phytosanitary laws and regulations, which are aimed at protecting against plant diseases. The approval comes more than a year after the two countries agreed on a phytosanitary protocol that would allow US rice imports in China for the first time. According to a 2017 statement by the US Department of Agriculture, which praised the Chinese market as "an exceptional opportunity" for the US rice industry, the agreement had "been in the works for more than a decade". US President Donald Trump and Chinese leader Xi Jinping agreed on the sidelines of the G20 summit in Buenos Aires at the start of December to a 90-day truce while they try to find a solution to the escalating trade dispute. Trump is seeking a massive reduction in the US trade deficit with China and deeper reforms to open the economy to foreign companies. Earlier this month, China's major state-owned grain stockpiler said it had resumed buying US soybeans, and Beijing announced it would suspend extra tariffs added to US-made cars and auto parts starting January 1. China is also targeting intellectual property theft in the country -- one of the main sticking points in the dispute with the US. On Sunday, a meeting of the Standing Committee of the National People's Congress (NPC, China's legislature) saw a draft law that would allow IP theft victims to claim "punitive damages". Maintaining and resolving the trade truce could help stabilise sentiment in China, where confidence in the economy has been hurt by the trade frictions with its key trade partner. China said Thursday that trade negotiators from China and the US are planning to meet in January for talks.

Amid 90-day tariff truce, China customs gives green light for US rice imports

Wall Street ended its worst week in a decade with more bruising losses Friday, and with the tech-rich Nasdaq entering a bear market amid worries about trade wars and a possible <a href="http://www.wionews.com/world/us-government-shuts-down-at-midnight-as-house-adjourns-with-no-deal-185738">US government shutdown</a>.

The Nasdaq and Dow suffered their worst weeks since the start of the global financial crisis as the US-China trade dispute returning to the forefront and amid continued concerns about the <a href="http://www.wionews.com/business-economy/us-federal-reserve-hikes-interest-rates-wall-street-stocks-tumble-185385">Federal Reserve's plans for interest rate increases</a>.

"It has been a remarkably terrible trading week for financial markets amid concerns over rising US interest rates, decelerating global growth, Brexit uncertainty and chaos in Washington," said Lukman Otunuga, a research analyst at FXTM.

The Dow Jones Industrial Average finished the week with a loss of nearly seven per cent, after losing 1.8 per cent or more than 400 points Friday, to close at 22,445.37.&nbsp;

Markets elsewhere were mixed, with European bourses flat or rising slightly, while Tokyo slid.

The Wall Street decline came as Washington teetered towards a likely government shutdown as US President Donald Trump dug in on threats to close if congressional Democrats continue to refuse his demand for funds to build a wall on the border of Mexico.

Thousands of US government employees could be furloughed without a paycheck right before the end-of-year holidays if Trump and congressional Democrats fail to strike a deal by midnight (0500 GMT Saturday).

Hardline voices

With that deadline looming, investors received another jolt in the final hour of trading when White House advisor Peter Navarro delivered hardline comments on the ongoing trade talks with China.

"China is basically trying to steal the future of Japan, the US and Europe, by going after our technology," Navarro, a longtime China hawk, told the Japan's Nikkei news agency in an interview conducted Thursday but published Friday.

And he said China must address all US concerns about its trade policies, saying there are "no half-measures."

Investors also have been anxious over the surprise resignation of Defense Secretary Jim Mattis, who laid out significant policy disagreements with the US president in his letter to Trump which he made public.

"We are in a fragile environment," said Gregori Volokhine of Meeschaert Financial Services.&nbsp;

"The extremist position is winning in the Trump administration, not just on trade but on everything."

Investors have been unnerved by the Federal Reserve's decision to raise interest rates this week, and projecting it would continue to raise next year.

New York Federal Reserve Bank President John Williams on Friday tried to tamp down market concerns, opening the door to a more benign monetary policy in 2019, saying the Fed was listening to the fears about the risks and will "be ready to reassess and re-evaluate our views and our policy stance."

Stocks briefly rallied on Williams remarks, but fell quickly back into the red.

Wall Street ended its worst week in a decade with more bruising losses Friday, and with the tech-rich Nasdaq entering a bear market amid worries about trade wars and a possible US government shutdown.

Wall Street ended its worst week in a decade with more bruising losses Friday, and with the tech-rich Nasdaq entering a bear market amid worries about trade wars and a possible US government shutdown. The Nasdaq and Dow suffered their worst weeks since the start of the global financial crisis as the US-China trade dispute returning to the forefront and amid continued concerns about the Federal Reserve's plans for interest rate increases. "It has been a remarkably terrible trading week for financial markets amid concerns over rising US interest rates, decelerating global growth, Brexit uncertainty and chaos in Washington," said Lukman Otunuga, a research analyst at FXTM. The Dow Jones Industrial Average finished the week with a loss of nearly seven per cent, after losing 1.8 per cent or more than 400 points Friday, to close at 22,445.37. Markets elsewhere were mixed, with European bourses flat or rising slightly, while Tokyo slid. The Wall Street decline came as Washington teetered towards a likely government shutdown as US President Donald Trump dug in on threats to close if congressional Democrats continue to refuse his demand for funds to build a wall on the border of Mexico. Thousands of US government employees could be furloughed without a paycheck right before the end-of-year holidays if Trump and congressional Democrats fail to strike a deal by midnight (0500 GMT Saturday). Hardline voices With that deadline looming, investors received another jolt in the final hour of trading when White House advisor Peter Navarro delivered hardline comments on the ongoing trade talks with China. "China is basically trying to steal the future of Japan, the US and Europe, by going after our technology," Navarro, a longtime China hawk, told the Japan's Nikkei news agency in an interview conducted Thursday but published Friday. And he said China must address all US concerns about its trade policies, saying there are "no half-measures." Investors also have been anxious over the surprise resignation of Defense Secretary Jim Mattis, who laid out significant policy disagreements with the US president in his letter to Trump which he made public. "We are in a fragile environment," said Gregori Volokhine of Meeschaert Financial Services. "The extremist position is winning in the Trump administration, not just on trade but on everything." Investors have been unnerved by the Federal Reserve's decision to raise interest rates this week, and projecting it would continue to raise next year. New York Federal Reserve Bank President John Williams on Friday tried to tamp down market concerns, opening the door to a more benign monetary policy in 2019, saying the Fed was listening to the fears about the risks and will "be ready to reassess and re-evaluate our views and our policy stance." Stocks briefly rallied on Williams remarks, but fell quickly back into the red.

Third straight rout end worst weak for Dow, Nasdaq since 2008 crisis

Asian markets mostly rose Monday as traders look ahead to a key meeting of the Federal Reserve, and a Chinese policy-setting conference this week.

However, there is still caution on trading floors after Friday's sharp sell-off fuelled by concerns over China's economy, and despite a tweet from Donald Trump suggesting a trade deal could be hammered out between Washington and Beijing.

While there are signs the world's top two economies are beginning to move towards a resolution in their bitter tariffs spat, there are increasing concerns about the global outlook following another dour set of indicators out of China.

A string of below-par readings this year have highlighted a slowdown in the Asian giant and observers are forecasting leaders will unveil fresh measures to pep up the economy, which is on course for another year of relatively weak growth.

A speech from President Xi Jinping to mark 40 years since China's economy began opening up will be closely followed Tuesday, and that is expected to be followed by a start of a conference setting out the country's 2019 economic plan.&nbsp;&nbsp; &nbsp;

"We should expect a raft of stimulus measures from China policymakers in an attempt to stabilise the domestic economy," said Stephen Innes, head of Asia-Pacific trade at OANDA.

The Fed will conclude its rate-setting policy meeting Wednesday and while expectations are for another hike in borrowing costs, comments from chairman Jerome Powell will be closely watched for an idea of its plans for 2019.

In light of the China-US trade row and signs of weakness in the global economy, the bank has sounded a little more dovish in recent weeks, fuelling speculation it will slow down its pace of rate hikes -- which has provided some much-needed support to equities.

"The upcoming (Fed) meeting and China's policy-setting meeting, have been the most actively discussed topics around the markets," Innes added.&nbsp; 
"And both events have a smoothing effect on risk sentiment."&nbsp;

In early business, Hong rose 0.2 per cent, Shanghai edged up 0.1 per cent and Tokyo finished the morning 0.8 per cent higher while Sydney put on 0.5 per cent and Singapore jumped 1.3 per cent.

Seoul added 0.2 per cent and Taipei gained 0.3 per cent but Wellington lost 0.3 per cent.

Steve Goldman, fund manager at Kapstream Capital, told Bloomberg TV in Sydney that "we're going to see a lot of volatility" in the new year because of global uncertainty.

Hopes that China and the US can reach a deal to end their trade war were given a boost by Trump Friday, when he tweeted: "China wants to make a big and very comprehensive deal. It could happen, and rather soon!"&nbsp;

That came after China earlier in the day backed off fresh levies imposed this summer on US-made cars and auto parts.

While a full-blown deal is some way off, the developments have provided some hope to dealers.

On currency markets the pound remains bogged down around 20-month lows as Prime Minister Theresa May struggles to win concessions from EU leaders over her

Brexit agreement, which a majority of lawmakers in Westminster oppose.

Facing growing calls for another referendum to break the deadlock, May is expected to tell MPs that such a move will do "irreparable damage" to British politics.

However, with her agreement all but dead in the water, there is a growing expectation Britain will leave the EU without a deal, which commentators warn could hammer the British economy.

Asian markets mostly rose Monday as traders look ahead to a key meeting of the Federal Reserve, and a Chinese policy-setting conference this week. However, there is still caution on trading floors after Friday's sharp sell-off fuelled by concerns over China's economy, and despite a tweet from Donald Trump suggesting a trade deal could be hammered out between Washington and Beijing.

Asian markets mostly rose Monday as traders look ahead to a key meeting of the Federal Reserve, and a Chinese policy-setting conference this week. However, there is still caution on trading floors after Friday's sharp sell-off fuelled by concerns over China's economy, and despite a tweet from Donald Trump suggesting a trade deal could be hammered out between Washington and Beijing. While there are signs the world's top two economies are beginning to move towards a resolution in their bitter tariffs spat, there are increasing concerns about the global outlook following another dour set of indicators out of China. A string of below-par readings this year have highlighted a slowdown in the Asian giant and observers are forecasting leaders will unveil fresh measures to pep up the economy, which is on course for another year of relatively weak growth. A speech from President Xi Jinping to mark 40 years since China's economy began opening up will be closely followed Tuesday, and that is expected to be followed by a start of a conference setting out the country's 2019 economic plan. "We should expect a raft of stimulus measures from China policymakers in an attempt to stabilise the domestic economy," said Stephen Innes, head of Asia-Pacific trade at OANDA. The Fed will conclude its rate-setting policy meeting Wednesday and while expectations are for another hike in borrowing costs, comments from chairman Jerome Powell will be closely watched for an idea of its plans for 2019. In light of the China-US trade row and signs of weakness in the global economy, the bank has sounded a little more dovish in recent weeks, fuelling speculation it will slow down its pace of rate hikes -- which has provided some much-needed support to equities. "The upcoming (Fed) meeting and China's policy-setting meeting, have been the most actively discussed topics around the markets," Innes added. "And both events have a smoothing effect on risk sentiment." In early business, Hong rose 0.2 per cent, Shanghai edged up 0.1 per cent and Tokyo finished the morning 0.8 per cent higher while Sydney put on 0.5 per cent and Singapore jumped 1.3 per cent. Seoul added 0.2 per cent and Taipei gained 0.3 per cent but Wellington lost 0.3 per cent. Steve Goldman, fund manager at Kapstream Capital, told Bloomberg TV in Sydney that "we're going to see a lot of volatility" in the new year because of global uncertainty. Hopes that China and the US can reach a deal to end their trade war were given a boost by Trump Friday, when he tweeted: "China wants to make a big and very comprehensive deal. It could happen, and rather soon!" That came after China earlier in the day backed off fresh levies imposed this summer on US-made cars and auto parts. While a full-blown deal is some way off, the developments have provided some hope to dealers. On currency markets the pound remains bogged down around 20-month lows as Prime Minister Theresa May struggles to win concessions from EU leaders over her Brexit agreement, which a majority of lawmakers in Westminster oppose. Facing growing calls for another referendum to break the deadlock, May is expected to tell MPs that such a move will do "irreparable damage" to British politics. However, with her agreement all but dead in the water, there is a growing expectation Britain will leave the EU without a deal, which commentators warn could hammer the British economy.

Asian markets mostly up ahead of key meetings in China and US

By John J Stremlau

US President Donald Trump has finally approved a “New Africa Strategy”. His national security adviser, John Bolton, described the contents on December 13 at the conservative Heritage Foundation in Washington. He began positively, declaring that, "Lasting stability, prosperity, independence and security on the African continent are in the national security interest of the United States."

But he then went on to ignore Africa’s own efforts to address these broad challenges, including its multilateral initiatives. Instead, Bolton’s announcement was replete with rhetoric reminiscent of the Cold War.

The new strategy makes one thing clear: What really matters to Trump is not Africa but containing and countering China.

The reaction from an African perspective is likely bemusement rather than surprise. Trump has shown little interest or empathy towards Africa. And much enmity toward China. His Africa strategy ignores two decades of complex – but generally positive – reactions across sub-Saharan Africa to China becoming the region’s biggest trading partner and a major source of aid and investment.

Previous US administrations generally welcomed Chinese engagement in Africa. Bolton, however, alleged that " China uses bribes, opaque agreements, and the strategic use of debt to hold states in Africa captive to Beijing’s wishes and demands."

But does it need to be this way? I would argue not. Africa offers China and America an opportunity to demonstrate to the world – and to each other – that their competition can be constructive with Africa playing a moderating influence by brokering an agreed trilateral agenda.

We need to explore ways to advance cooperation between Africa, China and the US as a confidence-building measure in relations between the US and China. This would obviously need to be designed for the primary benefit of African partners.

Testing trilateralism

Collaborative projects that involve the US and China, with Africa in the forefront, have been the focus of a Carter Centre project since 2014. The centre’s many successful programs in Africa, especially public health, have generated high-level trilateral policy interest. Since the Trump administration took over, these conversations have excluded his senior advisors. Nevertheless, work has continued. This has included recent developments which suggest headway is being made.

In early December the South African Institute of International Affairs hosted the troika that leads this project. The troika was represented by Seyoum Mesfin, Ethiopia’s former and longest-serving foreign minister, an ambassador to China, and regional mediator in Sudan; Zhong Jianhua, formerly China’s Special Representative on African affairs and to the Sudan conflicts; and Donald Booth, a former US ambassador to Liberia, Zambia, Ethiopia and special envoy to Sudan/South Sudan.

Three dozen African, Chinese and US scholars, as well as policy experts, contributed their analyses of previous and possible future areas for trilateral cooperation. They drew on some recent examples. These included efforts to combat piracy off the Horn of Africa and Gulf of Guinea as well as jointly developing a university campus in Liberia. Other projects have involved coordinated mediation between Sudan and South Sudan and mutually reinforcing actions to deal with the Ebola epidemic in West Africa.

Challenges ahead

Several priority areas for future tri-lateral cooperation were identified.

One was the recently constructed headquarters for the Centre for Disease Control and Prevention in Addis Ababa. Funded by China, the next priority for trilateral cooperation is to ensure the centre is equipped to provide better early warning and response to threats like Ebola.

Another priority area is expanding economic aid, trade and investment. This could be done through trilateral projects funded under China’s “Belt and Road” initiative and the US Build Act. The act was approved in October by a large bi-partisan majority of the US Congress.

A related issue is the huge loss of vital tax revenue to African governments due to huge “illicit financial flows”. These are estimated to exceed annual inflows of foreign assistance. The project will seek ways to encourage US and China to support the work of a panel set up by African Union and United Nations Economic Commission for Africa.

Two other broad areas for potential trilateral cooperation are sustainable agriculture and energy. Two initiatives started by the Obama Administration, with the support of Congress, have become popular in Africa. These are the “Feed the Future” and “Power Africa”.

Trump has long wanted to cut both. But his negative attitude isn’t shared by the US Congress, and perhaps even key members of his administration. Assistant Secretary of State for Africa, Tibor Nagy, summarised US-Africa policy before the House Foreign Affairs Committee on the same day Trump approved the new Africa strategy. Nagy’s comments reflected a different mindset. He spoke positively about the two Obama initiatives. He also didn’t seem alarmed by China’s growing presence.

At a time when many in Africa are debating how to build capable states without the undesirable aspects of either America’s “decadent” democracy or China’s “responsive” authoritarianism, engaging both should yield important insights for advancing collective self-reliance and development.

(This article was originally published on The Conversation. Read the <a href="https://theconversation.com/trumps-africa-strategy-should-have-cast-china-as-a-regional-partner-not-a-global-adversary-108901">original article</a>)

(Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL) 
&nbsp;

By John J Stremlau US President Donald Trump has finally approved a “New Africa Strategy”. His national security adviser, John Bolton, described the contents on December 13 at the conservative Heritage Foundation in Washington.

By John J Stremlau US President Donald Trump has finally approved a “New Africa Strategy”. His national security adviser, John Bolton, described the contents on December 13 at the conservative Heritage Foundation in Washington. He began positively, declaring that, "Lasting stability, prosperity, independence and security on the African continent are in the national security interest of the United States." But he then went on to ignore Africa’s own efforts to address these broad challenges, including its multilateral initiatives. Instead, Bolton’s announcement was replete with rhetoric reminiscent of the Cold War. The new strategy makes one thing clear: What really matters to Trump is not Africa but containing and countering China. The reaction from an African perspective is likely bemusement rather than surprise. Trump has shown little interest or empathy towards Africa. And much enmity toward China. His Africa strategy ignores two decades of complex – but generally positive – reactions across sub-Saharan Africa to China becoming the region’s biggest trading partner and a major source of aid and investment. Previous US administrations generally welcomed Chinese engagement in Africa. Bolton, however, alleged that " China uses bribes, opaque agreements, and the strategic use of debt to hold states in Africa captive to Beijing’s wishes and demands." But does it need to be this way? I would argue not. Africa offers China and America an opportunity to demonstrate to the world – and to each other – that their competition can be constructive with Africa playing a moderating influence by brokering an agreed trilateral agenda. We need to explore ways to advance cooperation between Africa, China and the US as a confidence-building measure in relations between the US and China. This would obviously need to be designed for the primary benefit of African partners. Testing trilateralism Collaborative projects that involve the US and China, with Africa in the forefront, have been the focus of a Carter Centre project since 2014. The centre’s many successful programs in Africa, especially public health, have generated high-level trilateral policy interest. Since the Trump administration took over, these conversations have excluded his senior advisors. Nevertheless, work has continued. This has included recent developments which suggest headway is being made. In early December the South African Institute of International Affairs hosted the troika that leads this project. The troika was represented by Seyoum Mesfin, Ethiopia’s former and longest-serving foreign minister, an ambassador to China, and regional mediator in Sudan; Zhong Jianhua, formerly China’s Special Representative on African affairs and to the Sudan conflicts; and Donald Booth, a former US ambassador to Liberia, Zambia, Ethiopia and special envoy to Sudan/South Sudan. Three dozen African, Chinese and US scholars, as well as policy experts, contributed their analyses of previous and possible future areas for trilateral cooperation. They drew on some recent examples. These included efforts to combat piracy off the Horn of Africa and Gulf of Guinea as well as jointly developing a university campus in Liberia. Other projects have involved coordinated mediation between Sudan and South Sudan and mutually reinforcing actions to deal with the Ebola epidemic in West Africa. Challenges ahead Several priority areas for future tri-lateral cooperation were identified. One was the recently constructed headquarters for the Centre for Disease Control and Prevention in Addis Ababa. Funded by China, the next priority for trilateral cooperation is to ensure the centre is equipped to provide better early warning and response to threats like Ebola. Another priority area is expanding economic aid, trade and investment. This could be done through trilateral projects funded under China’s “Belt and Road” initiative and the US Build Act. The act was approved in October by a large bi-partisan majority of the US Congress. A related issue is the huge loss of vital tax revenue to African governments due to huge “illicit financial flows”. These are estimated to exceed annual inflows of foreign assistance. The project will seek ways to encourage US and China to support the work of a panel set up by African Union and United Nations Economic Commission for Africa. Two other broad areas for potential trilateral cooperation are sustainable agriculture and energy. Two initiatives started by the Obama Administration, with the support of Congress, have become popular in Africa. These are the “Feed the Future” and “Power Africa”. Trump has long wanted to cut both. But his negative attitude isn’t shared by the US Congress, and perhaps even key members of his administration. Assistant Secretary of State for Africa, Tibor Nagy, summarised US-Africa policy before the House Foreign Affairs Committee on the same day Trump approved the new Africa strategy. Nagy’s comments reflected a different mindset. He spoke positively about the two Obama initiatives. He also didn’t seem alarmed by China’s growing presence. At a time when many in Africa are debating how to build capable states without the undesirable aspects of either America’s “decadent” democracy or China’s “responsive” authoritarianism, engaging both should yield important insights for advancing collective self-reliance and development. (This article was originally published on The Conversation. Read the original article) (Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL)

Donald Trump’s Africa strategy should have cast China as a regional partner, not a global adversary

President Donald Trump on Friday predicted a major <a href="http://www.wionews.com/world/trump-and-china-called-a-truce-in-the-trade-war-now-what-181070">US-China trade deal</a> in the near future, saying that Beijing's negotiating position had been weakened by the impact of the tariffs war between the world's top two economies.

"China wants to make a big and very comprehensive deal. It could happen, and rather soon!" Trump tweeted.

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China just announced that their economy is growing much slower than anticipated because of our Trade War with them. They have just suspended U.S. Tariff Hikes. U.S. is doing very well. China wants to make a big and very comprehensive deal. It could happen, and rather soon!
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His optimism followed China's decision earlier Friday to back off from extra punitive duties that had been imposed this summer on US-made cars and auto parts.

The move was seen as the first concrete result of the US leader's<a href="http://www.wionews.com/world/us-china-agree-to-trade-war-ceasefire-more-talks-180930"> G20 talks with his counterpart Xi Jinping </a>earlier this month.

Those tariffs now fall from 40 per cent to 15 per cent -- the same rate imposed on all foreign-made vehicles. The relief will last for three months from January 1.

"Suspension of the tariffs is a concrete measure to implement the consensus reached by the two heads of state," said the announcement by the State Council's Tariff Commission Office, noting it applied to 211 product codes.

Trump said the climbdown showed that China had been forced to blink in their on-off spat, after months of heavy <a href="http://www.wionews.com/world/china-envoy-warns-of-dire-consequences-if-us-hardliners-hold-sway-179861">US tariffs</a> on Chinese imports.

"China just announced that their economy is growing much slower than anticipated because of our Trade War with them. They have just suspended U.S. Tariff Hikes. US&nbsp;is doing very well," Trump said.

Beijing's move also demonstrated that talks to resolve the trade conflict have survived the tension sparked by Canada's arrest of a top Chinese telecom executive at the behest of US law enforcement.

Meng Wanzhou, chief financial officer of telecoms behemoth Huawei, has been released on bail in Canada. China wants her unconditional release. Washington wants her extradited for allegedly violating US sanctions on Iran.

China apparently retaliated by detaining two Canadians on suspicion of "harm to national security" -- a phrase often used by Beijing when alleging espionage.

Washington insists that the case is driven purely by the US Justice Department, rather than anything to do with the trade dispute, but Trump has muddied the waters by suggesting he might intervene if that would help the trade talks.

Tit for tat

Trump and Chinese leader Xi Jinping agreed on the sidelines of the G20 summit in Buenos Aires on December 1 to a 90-day truce while they tried to find a solution to the escalating trade dispute.

Confusion and unease over what agreement the two sides reached in Argentina has roiled stock markets.

But trade negotiators talked on the phone this week to discuss a timetable for talks. Friday's announcement in Beijing also confirms what Trump said on December 2 about China acting on the auto tariffs.

"We hope that both sides will -- in accordance with the consensus reached by the two heads of state, on the premise of mutual respect, mutual equality, faithfulness, words and actions -- intensify consultations in the direction of cancelling all of the extra tariff increases," the State Council's statement said.

Stand to benefit

The tariff suspension will benefit US carmakers like Tesla and Ford which have seen China sales tumble.

"It is essential that governments work together to advance balanced and fair trade. We look forward to learning more," a spokesman for Ford said after Trump announced China would cut car tariffs.

International automakers Daimler, maker of the Mercedes-Benz, and BMW have also exported American-made SUVs to China.

US exports to China fell 25 per cent on-year in November as the higher tariffs on hundreds of American goods hurt demand.

In another signal that China may move to satisfy Trump, the country's top legislature announced Friday that it would hold a session from December 23-29 to discuss legislation on foreign investment and draft revisions to the patent law.

The United States has long complained of a lack of fair access for foreign companies in China and rampant theft of intellectual property.

For now, the National People's Congress Standing Committee has not provided details about the draft legislation.

Maintaining and resolving the trade truce could help stabilize sentiment in China, where confidence in the economy has been hurt by the trade frictions with Washington.

Earlier on Friday, economic data showed Chinese consumer spending grew at its slowest pace in 15 years and factories eased up in November, raising the prospect that Beijing could turn to fresh stimulus measures to help the sputtering economy.

China's top officials on the Politburo said in a statement Thursday that major economic indicators will be kept within a reasonable range next year.

"The meeting also signalled further market opening," economists at Trivium Research wrote in a newsletter.

President Donald Trump on Friday predicted a major US-China trade deal in the near future, saying that Beijing's negotiating position had been weakened by the impact of the tariffs war between the world's top two economies.

President Donald Trump on Friday predicted a major US-China trade deal in the near future, saying that Beijing's negotiating position had been weakened by the impact of the tariffs war between the world's top two economies. "China wants to make a big and very comprehensive deal. It could happen, and rather soon!" Trump tweeted. China just announced that their economy is growing much slower than anticipated because of our Trade War with them. They have just suspended U.S. Tariff Hikes. U.S. is doing very well. China wants to make a big and very comprehensive deal. It could happen, and rather soon! — Donald J. Trump (@realDonaldTrump) December 14, 2018 × His optimism followed China's decision earlier Friday to back off from extra punitive duties that had been imposed this summer on US-made cars and auto parts. The move was seen as the first concrete result of the US leader's G20 talks with his counterpart Xi Jinping earlier this month. Those tariffs now fall from 40 per cent to 15 per cent -- the same rate imposed on all foreign-made vehicles. The relief will last for three months from January 1. "Suspension of the tariffs is a concrete measure to implement the consensus reached by the two heads of state," said the announcement by the State Council's Tariff Commission Office, noting it applied to 211 product codes. Trump said the climbdown showed that China had been forced to blink in their on-off spat, after months of heavy US tariffs on Chinese imports. "China just announced that their economy is growing much slower than anticipated because of our Trade War with them. They have just suspended U.S. Tariff Hikes. US is doing very well," Trump said. Beijing's move also demonstrated that talks to resolve the trade conflict have survived the tension sparked by Canada's arrest of a top Chinese telecom executive at the behest of US law enforcement. Meng Wanzhou, chief financial officer of telecoms behemoth Huawei, has been released on bail in Canada. China wants her unconditional release. Washington wants her extradited for allegedly violating US sanctions on Iran. China apparently retaliated by detaining two Canadians on suspicion of "harm to national security" -- a phrase often used by Beijing when alleging espionage. Washington insists that the case is driven purely by the US Justice Department, rather than anything to do with the trade dispute, but Trump has muddied the waters by suggesting he might intervene if that would help the trade talks. Tit for tat Trump and Chinese leader Xi Jinping agreed on the sidelines of the G20 summit in Buenos Aires on December 1 to a 90-day truce while they tried to find a solution to the escalating trade dispute. Confusion and unease over what agreement the two sides reached in Argentina has roiled stock markets. But trade negotiators talked on the phone this week to discuss a timetable for talks. Friday's announcement in Beijing also confirms what Trump said on December 2 about China acting on the auto tariffs. "We hope that both sides will -- in accordance with the consensus reached by the two heads of state, on the premise of mutual respect, mutual equality, faithfulness, words and actions -- intensify consultations in the direction of cancelling all of the extra tariff increases," the State Council's statement said. Stand to benefit The tariff suspension will benefit US carmakers like Tesla and Ford which have seen China sales tumble. "It is essential that governments work together to advance balanced and fair trade. We look forward to learning more," a spokesman for Ford said after Trump announced China would cut car tariffs. International automakers Daimler, maker of the Mercedes-Benz, and BMW have also exported American-made SUVs to China. US exports to China fell 25 per cent on-year in November as the higher tariffs on hundreds of American goods hurt demand. In another signal that China may move to satisfy Trump, the country's top legislature announced Friday that it would hold a session from December 23-29 to discuss legislation on foreign investment and draft revisions to the patent law. The United States has long complained of a lack of fair access for foreign companies in China and rampant theft of intellectual property. For now, the National People's Congress Standing Committee has not provided details about the draft legislation. Maintaining and resolving the trade truce could help stabilize sentiment in China, where confidence in the economy has been hurt by the trade frictions with Washington. Earlier on Friday, economic data showed Chinese consumer spending grew at its slowest pace in 15 years and factories eased up in November, raising the prospect that Beijing could turn to fresh stimulus measures to help the sputtering economy. China's top officials on the Politburo said in a statement Thursday that major economic indicators will be kept within a reasonable range next year. "The meeting also signalled further market opening," economists at Trivium Research wrote in a newsletter.

'Big' China-US trade deal could happen rather soon : Trump

India can benefit from the trade tensions between the United States and China, Henry Kravis, co-chief of KKR &amp; Co Inc said on Wednesday, but he also said the country needed to cut back on red tape to attract more investment.

US President <a href="http://www.wionews.com/world/trump-and-china-called-a-truce-in-the-trade-war-now-what-181070">Donald Trump started a trade war with China</a> earlier this year as his administration imposed tariffs on steel, aluminium and various Chinese products. Beijing retaliated with import taxes of its own on products such as American-made cars.

"This (the trade war) is very positive for South East Asia and is very positive, in my view, for India," Henry R. Kravis, co-CEO of KKR told journalists at a media roundtable on Wednesday.

Also read: <a href="http://www.wionews.com/india-news/at-g20-pm-talks-about-trade-wars-and-terror-180797">At G20, Modi says trade war can do collateral damage to emerging economies</a>

"As you (India) get better infrastructure, get rid of some of this red tape bureaucracy ... this country will benefit big time."

India rose 23 places to 77th in the World Bank's Ease of Doing Business Index for 2019, up from 100th in 2018, thanks to improving metrics in areas including access to credit and construction permits.

Kravis also said India's large youth population was a big positive and that the country needed major investment in several sectors such as education, finance, healthcare and environment.

"That's an opportunity for people like us," he said.

Kravis also highlighted the need for a healthy local bond market in India.

"If you don't have a long-term bond market you limit the growth because you're putting all the onus back on to the banks to basically be the provider of capital," Kravis. "That's the reason that we set up our two NBFCs (non-banking financial companies) here - one in real estate credit and one is in corporate credit."

KKR, founded in 1976, currently manages assets roughly worth $195 billion. The company opened an office in India in 2009 and currently has about 43 staff. It has invested more than $7 billion in its credit business in the country and will invest more in the business going forward, he said.

KKR has also changed its focus to acquiring control positions or significant minority with near-control rights in companies instead of taking minority positions that did not give the company influence, Kravis said.

KKR's investments in India include hospital management firm Radiant Life Care and Max Financial Services, the holding company of private insurance firm Max Life Insurance.

India can benefit from the trade tensions between the United States and China, Henry Kravis, co-chief of KKR & Co Inc said on Wednesday, but he also said the country needed to cut back on red tape to attract more investment.

India can benefit from the trade tensions between the United States and China, Henry Kravis, co-chief of KKR & Co Inc said on Wednesday, but he also said the country needed to cut back on red tape to attract more investment. US President Donald Trump started a trade war with China earlier this year as his administration imposed tariffs on steel, aluminium and various Chinese products. Beijing retaliated with import taxes of its own on products such as American-made cars. "This (the trade war) is very positive for South East Asia and is very positive, in my view, for India," Henry R. Kravis, co-CEO of KKR told journalists at a media roundtable on Wednesday. Also read: At G20, Modi says trade war can do collateral damage to emerging economies "As you (India) get better infrastructure, get rid of some of this red tape bureaucracy ... this country will benefit big time." India rose 23 places to 77th in the World Bank's Ease of Doing Business Index for 2019, up from 100th in 2018, thanks to improving metrics in areas including access to credit and construction permits. Kravis also said India's large youth population was a big positive and that the country needed major investment in several sectors such as education, finance, healthcare and environment. "That's an opportunity for people like us," he said. Kravis also highlighted the need for a healthy local bond market in India. "If you don't have a long-term bond market you limit the growth because you're putting all the onus back on to the banks to basically be the provider of capital," Kravis. "That's the reason that we set up our two NBFCs (non-banking financial companies) here - one in real estate credit and one is in corporate credit." KKR, founded in 1976, currently manages assets roughly worth $195 billion. The company opened an office in India in 2009 and currently has about 43 staff. It has invested more than $7 billion in its credit business in the country and will invest more in the business going forward, he said. KKR has also changed its focus to acquiring control positions or significant minority with near-control rights in companies instead of taking minority positions that did not give the company influence, Kravis said. KKR's investments in India include hospital management firm Radiant Life Care and Max Financial Services, the holding company of private insurance firm Max Life Insurance.

India can benefit from US-China trade war: KKR chief

Japan plans to ban government purchases of equipment from China's Huawei Technologies Co Ltd and ZTE Corp, news agency Reuters reported on Friday citing&nbsp;a person with direct knowledge on the matter.

Accordign to a report by a local newspaper, the government was expected to revise its internal rules on procurement as early as Monday in a bid to prevent intelligence leaks and cyber attacks.

The ban comes a day after the reports of&nbsp;the <a href="http://www.wionews.com/world/huawei-cfo-arrested-in-canada-faces-extradition-to-us-181757">arrest of China's tech giant Huawei's chief financial officer, Meng Wanzou</a> on US extradition request. She was arrested in Vancouver airport for violating US sanction against Iran.

Also read:<a href="http://www.wionews.com/world/what-you-need-to-know-about-chinese-tech-giant-huawei-181879">&nbsp;What you need to know about Chinese tech giant Huawei</a>

With <a href="http://www.wionews.com/world/china-urges-immediate-release-of-huawei-cfo-meng-wanzhou-181949">China demanding the release of Meng</a>, Canadian Prime Minister Justin Trudeau distanced Canada from the arrest saying that the officers who arrested Meng on Saturday as she was changing planes&nbsp;had acted on their own.

"I can assure everyone that we are a country (with) an independent judiciary," Trudeau told a tech conference in Montreal. "And they took this decision without any political involvement or interference."

Meanwhile, China has said that <a href="http://www.wionews.com/world/arrest-of-huawei-cfo-throws-rare-spotlight-on-family-181953">Meng,&nbsp;the daughter of Huawei founder Ren Zhengfei</a>, a former engineer in China's People's Liberation Army, had violated no laws in either Canada or the United States.

Huawei has also&nbsp;denied any wrongdoing saying&nbsp;that it was compliant with "all applicable laws and regulations where it operates."

Huawei's affordable smartphones have made strong inroads in the developing world, but the company has faced repeated setbacks in major Western economies over security concerns.

Japan plans to ban government purchases of equipment from China's Huawei Technologies Co Ltd and ZTE Corp, news agency Reuters reported on Friday citing a person with direct knowledge on the matter.

Japan plans to ban government purchases of equipment from China's Huawei Technologies Co Ltd and ZTE Corp, news agency Reuters reported on Friday citing a person with direct knowledge on the matter. Accordign to a report by a local newspaper, the government was expected to revise its internal rules on procurement as early as Monday in a bid to prevent intelligence leaks and cyber attacks. The ban comes a day after the reports of the arrest of China's tech giant Huawei's chief financial officer, Meng Wanzou on US extradition request. She was arrested in Vancouver airport for violating US sanction against Iran. Also read: What you need to know about Chinese tech giant Huawei With China demanding the release of Meng, Canadian Prime Minister Justin Trudeau distanced Canada from the arrest saying that the officers who arrested Meng on Saturday as she was changing planes had acted on their own. "I can assure everyone that we are a country (with) an independent judiciary," Trudeau told a tech conference in Montreal. "And they took this decision without any political involvement or interference." Meanwhile, China has said that Meng, the daughter of Huawei founder Ren Zhengfei, a former engineer in China's People's Liberation Army, had violated no laws in either Canada or the United States. Huawei has also denied any wrongdoing saying that it was compliant with "all applicable laws and regulations where it operates." Huawei's affordable smartphones have made strong inroads in the developing world, but the company has faced repeated setbacks in major Western economies over security concerns.

Japan to bar Huawei, ZTE from government procurement contracts: Report

The chief financial officer of China's global telecommunications giant Huawei has been arrested in Canada and faces extradition to the United States, officials said Friday, triggering a strong protest by Beijing, which called for her immediate release.

Meng Wanzhou's detention comes after American authorities reportedly launched an investigation into suspected Iran sanctions by Huawei, which was already under scrutiny by US intelligence officials, who deemed the company a national security threat.

Meng "was arrested in Vancouver on December 1," a statement by Canada's ministry of justice said.&nbsp;

"She is sought for extradition by the United States, and a bail hearing has been set for Friday."

The ministry added it could not provide further details due to a publication ban that was sought by Meng, who is the daughter of Huawei founder Ren Zhengfei, a former Chinese People's Liberation Army engineer.

The Wall Street Journal reported in April that US Department of Justice had opened an investigation into suspected violations of Iran sanctions by Huawei.

The New York Times meanwhile said that the company had been subpoenaed by the Commerce and Treasury Departments over alleged violations of Iran and North Korea sanctions.&nbsp;

China's embassy in Ottawa issued a swift reaction to the news, calling for Meng's release.

"The Chinese side firmly opposes and strongly protests over such kind of actions which seriously harmed the human rights of the victim," the diplomatic mission said in a statement.

"The Chinese side has lodged stern representations with the US and Canadian side, and urged them to immediately correct the wrongdoing and restore the personal freedom of Ms Meng Wanzhou."

Huawei added it was unaware of any wrongdoing and was in compliance with all applicable laws.

"The company has been provided very little information regarding the charges and is not aware of any wrongdoing by Ms Meng (Wanzhou)," it said.

Espionage worries

Huawei is one of the world's largest telecommunications equipment and services providers.

But despite global success, its US business has been tightly constrained by worries it could undermine American competitors and that its cellphones and networking equipment, used widely in other countries, could provide Beijing with avenues for espionage.

Over the summer, Australia also barred Huawei from providing 5G technology for wireless networks in the country over espionage fears. New Zealand followed suit in November, but said the issue was a technological one.

In June, Canada's Globe and Mail newspaper reported that US lawmakers warned the Canadian government that Huawei posed a major cybersecurity risk.

Despite being essentially barred from the critical US market, Huawei surpassed Apple to become the world's number two smartphone maker in the second quarter of this year and has market leader Samsung in its sights.

Meng's arrest comes as Ottawa and Beijing have been engaged in exploratory talks on a free trade agreement for the past two years, which would be the first deal of its kind between China and a western country.

The chief financial officer of China's global telecommunications giant Huawei has been arrested in Canada and faces extradition to the United States, officials said Friday, triggering a strong protest by Beijing, which called for her immediate release.

The chief financial officer of China's global telecommunications giant Huawei has been arrested in Canada and faces extradition to the United States, officials said Friday, triggering a strong protest by Beijing, which called for her immediate release. Meng Wanzhou's detention comes after American authorities reportedly launched an investigation into suspected Iran sanctions by Huawei, which was already under scrutiny by US intelligence officials, who deemed the company a national security threat. Meng "was arrested in Vancouver on December 1," a statement by Canada's ministry of justice said. "She is sought for extradition by the United States, and a bail hearing has been set for Friday." The ministry added it could not provide further details due to a publication ban that was sought by Meng, who is the daughter of Huawei founder Ren Zhengfei, a former Chinese People's Liberation Army engineer. The Wall Street Journal reported in April that US Department of Justice had opened an investigation into suspected violations of Iran sanctions by Huawei. The New York Times meanwhile said that the company had been subpoenaed by the Commerce and Treasury Departments over alleged violations of Iran and North Korea sanctions. China's embassy in Ottawa issued a swift reaction to the news, calling for Meng's release. "The Chinese side firmly opposes and strongly protests over such kind of actions which seriously harmed the human rights of the victim," the diplomatic mission said in a statement. "The Chinese side has lodged stern representations with the US and Canadian side, and urged them to immediately correct the wrongdoing and restore the personal freedom of Ms Meng Wanzhou." Huawei added it was unaware of any wrongdoing and was in compliance with all applicable laws. "The company has been provided very little information regarding the charges and is not aware of any wrongdoing by Ms Meng (Wanzhou)," it said. Espionage worries Huawei is one of the world's largest telecommunications equipment and services providers. But despite global success, its US business has been tightly constrained by worries it could undermine American competitors and that its cellphones and networking equipment, used widely in other countries, could provide Beijing with avenues for espionage. Over the summer, Australia also barred Huawei from providing 5G technology for wireless networks in the country over espionage fears. New Zealand followed suit in November, but said the issue was a technological one. In June, Canada's Globe and Mail newspaper reported that US lawmakers warned the Canadian government that Huawei posed a major cybersecurity risk. Despite being essentially barred from the critical US market, Huawei surpassed Apple to become the world's number two smartphone maker in the second quarter of this year and has market leader Samsung in its sights. Meng's arrest comes as Ottawa and Beijing have been engaged in exploratory talks on a free trade agreement for the past two years, which would be the first deal of its kind between China and a western country.

Huawei founder's daughter arrested in Canada on suspicion of violating US sanctions

Days after US and China trade war truce, top executive and daughter of Chinese tech giant Huawei's founder was arrested in Canada on Thursday. She was<a href="http://www.wionews.com/world/huawei-cfo-arrested-in-canada-faces-extradition-to-us-181757"> arrested on the suspicion of violating US sanctions </a>against Iran.

Who is Meng Wanzhou?

Meng Wanzhou is a Chief Financial Officer at Huawei. She is also a daughter of company's founder Ren Zhengfei who is a former Chinese People's Liberation Army engineer.&nbsp;

She was arrested in the western city of Vancouver on December 1 while transferring flights in Canada. Reports say she was arrested at the request of US authorities. The court will hear the case on Friday.

Why she was arrested?

She was arrested on a suspicion that she violated US sanctions.

The detention comes after American authorities reportedly launched an investigation into suspected Iran sanctions violations by Huawei, which was already under scrutiny by US intelligence officials who deemed the company a national security threat.

US authorities have been probing Huawei since 2016 for allegedly shipping US-origin products to Iran and other countries in violation of US export and sanctions laws.

China calls for immediate release

China's embassy in Canada said it resolutely opposed the arrest and called for Meng's immediate release.

"The Chinese side firmly opposes and strongly protests over such kind of actions which seriously harmed the human rights of the victim," the embassy said in a statement.

"The Chinese side has lodged stern representations with the US and Canadian side, and urged them to immediately correct the wrongdoing and restore the personal freedom of Ms Meng Wanzhou."

Huawei denies any wrongdoing

Huawei said it was unaware of any wrongdoing by Meng and was provided "very little information" about the charges.

"Huawei complies with all applicable laws and regulations where it operates, including applicable export control and sanction laws and regulations of the UN, US and EU," the company said in a statement.

US Senator Ben Sasse praised the move and said that it was "for breaking US sanctions against Iran." He added: "Sometimes Chinese aggression is explicitly state-sponsored and sometimes it's laundered through many of Beijing's so-called 'private' sector entities."

Impact on trade war truce

The shock arrest of Men Wanzhou raised fresh doubts over<a href="http://www.wionews.com/world/trump-and-china-called-a-truce-in-the-trade-war-now-what-181070"> 90-day truce on trade </a>struck between US President Donald Trump and Chinese President Xi Jinping.

Reuters quoted Jia Wenshan, a professor at Chapman University in California, saying that the arrest was part of a broader geopolitical strategy from the Trump administration to counter China and it "runs a huge risk of derailing the <a href="http://www.wionews.com/world/us-china-agree-to-trade-war-ceasefire-more-talks-180930">US-China trade talks</a>".

The arrest is also being closely watched as it occurred on the same day when both presidents struck the trade war truce at a summit in Argentina.

The arrest and any potential sanctions could have major repercussions on the global technology supply chain. <a href="http://www.wionews.com/business-economy/asian-markets-tumble-china-tech-hit-after-huawei-arrest-181796">Shares in Asian suppliers to Huawei</a>, which also counts Qualcomm Inc and Intel among its major suppliers, tumbled on Thursday.

Huawei is one of the world's largest telecommunications equipment and services providers.

But despite global success, its US business has been tightly constrained by worries it could undermine American competitors and that its cellphones and networking equipment, used widely in other countries, could provide Beijing with avenues for espionage.

In May, the Pentagon said that devices from Huawei and ZTE posed an "unacceptable" security risk. Personnel on US military bases are banned from buying equipment manufactured by the Chinese tech firms.

Over the summer, Australia barred Huawei from providing 5G technology for wireless networks in the country over espionage fears.&nbsp;

New Zealand followed suit in November but said the issue was a technological one.

Britain's largest mobile provider too has joined the global ban on Huawei.&nbsp;

On Wednesday, BT announced it was removing Huawei's telecommunications equipment from its 4G cellular network, following a warning from the head of MI6 foreign intelligence service that singled out the Chinese company as a potential security risk.

Despite being essentially barred from the critical US market, Huawei surpassed Apple to become the world's number two smartphone maker in the second quarter of this year.

Days after US and China trade war truce, top executive and daughter of Chinese tech giant Huawei's founder was arrested in Canada on Thursday. She was arrested on the suspicion of violating US sanctions against Iran.

Days after US and China trade war truce, top executive and daughter of Chinese tech giant Huawei's founder was arrested in Canada on Thursday. She was arrested on the suspicion of violating US sanctions against Iran. Who is Meng Wanzhou? Meng Wanzhou is a Chief Financial Officer at Huawei. She is also a daughter of company's founder Ren Zhengfei who is a former Chinese People's Liberation Army engineer. She was arrested in the western city of Vancouver on December 1 while transferring flights in Canada. Reports say she was arrested at the request of US authorities. The court will hear the case on Friday. Why she was arrested? She was arrested on a suspicion that she violated US sanctions. The detention comes after American authorities reportedly launched an investigation into suspected Iran sanctions violations by Huawei, which was already under scrutiny by US intelligence officials who deemed the company a national security threat. US authorities have been probing Huawei since 2016 for allegedly shipping US-origin products to Iran and other countries in violation of US export and sanctions laws. China calls for immediate release China's embassy in Canada said it resolutely opposed the arrest and called for Meng's immediate release. "The Chinese side firmly opposes and strongly protests over such kind of actions which seriously harmed the human rights of the victim," the embassy said in a statement. "The Chinese side has lodged stern representations with the US and Canadian side, and urged them to immediately correct the wrongdoing and restore the personal freedom of Ms Meng Wanzhou." Huawei denies any wrongdoing Huawei said it was unaware of any wrongdoing by Meng and was provided "very little information" about the charges. "Huawei complies with all applicable laws and regulations where it operates, including applicable export control and sanction laws and regulations of the UN, US and EU," the company said in a statement. US Senator Ben Sasse praised the move and said that it was "for breaking US sanctions against Iran." He added: "Sometimes Chinese aggression is explicitly state-sponsored and sometimes it's laundered through many of Beijing's so-called 'private' sector entities." Impact on trade war truce The shock arrest of Men Wanzhou raised fresh doubts over 90-day truce on trade struck between US President Donald Trump and Chinese President Xi Jinping. Reuters quoted Jia Wenshan, a professor at Chapman University in California, saying that the arrest was part of a broader geopolitical strategy from the Trump administration to counter China and it "runs a huge risk of derailing the US-China trade talks". The arrest is also being closely watched as it occurred on the same day when both presidents struck the trade war truce at a summit in Argentina. The arrest and any potential sanctions could have major repercussions on the global technology supply chain. Shares in Asian suppliers to Huawei, which also counts Qualcomm Inc and Intel among its major suppliers, tumbled on Thursday. Huawei is one of the world's largest telecommunications equipment and services providers. But despite global success, its US business has been tightly constrained by worries it could undermine American competitors and that its cellphones and networking equipment, used widely in other countries, could provide Beijing with avenues for espionage. In May, the Pentagon said that devices from Huawei and ZTE posed an "unacceptable" security risk. Personnel on US military bases are banned from buying equipment manufactured by the Chinese tech firms. Over the summer, Australia barred Huawei from providing 5G technology for wireless networks in the country over espionage fears. New Zealand followed suit in November but said the issue was a technological one. Britain's largest mobile provider too has joined the global ban on Huawei. On Wednesday, BT announced it was removing Huawei's telecommunications equipment from its 4G cellular network, following a warning from the head of MI6 foreign intelligence service that singled out the Chinese company as a potential security risk. Despite being essentially barred from the critical US market, Huawei surpassed Apple to become the world's number two smartphone maker in the second quarter of this year.

What you need to know about Chinese tech giant Huawei

China vowed Wednesday to move swiftly to strike a trade consensus with the United States, even as mixed signals on the detente from self-described "Tariff Man" Donald Trump's administration upset global markets.

Trump sowed more confusion as he opened the door to lengthier negotiations with China, suggesting that they could extend beyond a 90-day deadline to reach a deal to avoid a massive tariff increase.

But the Chinese commerce ministry said negotiators will "actively push forward negotiations within 90 days in accordance with a clear timetable and roadmap" — marking Beijing's first public acknowledgement of the deadline announced by the US at the weekend.

The ministry lauded Trump's talks with President Xi Jinping at the weekend as "successful" and said it was "confident" that their agreement will be implemented.

The ministry vowed to start implementing "specific matters" that were agreed -- saying "the sooner the better" -- but it did not provide any details.

Trump and Xi agreed on a trade war truce on the sidelines of a G20 summit in Argentina on Saturday, holding off on new tariffs and giving negotiators three months to reach an agreement.

China pledged to buy more from the United States and the White House said the two sides would negotiate "structural changes" to intellectual property protection, but few details and no dollar amounts were disclosed.

Adding to the confusion, the US leader indicated on Tuesday that the talks could go beyond the March 1 deadline.

"The negotiations with China have already started. Unless extended, they will end 90 days from the date of our wonderful and very warm dinner with President Xi in Argentina," Trump tweeted.

But the US leader kept up the threats as he warned that he was ready to make China "pay for the privilege" of selling in the US market if the negotiations fail.

While he said he would "happily sign" a fair deal that addresses US concerns, he warned: "remember, I am a Tariff Man."

'REAL deal' 
The change in tone and the increased confusion over what was achieved at the meeting contributed to a sharp decline in the US stock market, which plunged on Tuesday, driven lower by trade worries and fears for future US economic growth. Chinese shares also opened lower on Wednesday.

As part of the truce, Trump agreed to hold off on plans to raise the tariffs on $200 billion in Chinese imports to 25 percent beginning January 1, leaving them at the current 10 percent rate.

The tone of Trump's latest tweets show an apparent shift from 24 hours earlier, when he was unreservedly triumphant, saying relations with China had taken a "BIG leap forward."

On Tuesday, he said US Trade Representative Robert Lighthizer would lead the talks to see "whether or not a REAL deal with China is actually possible."

US Treasury Secretary Steven Mnuchin said markets were in a "wait-and-see" mode.

"The market is trying to figure out, is there going to be a real deal at the end of 90 days or not," Mnuchin said at a Wall Street Journal event on Tuesday.

IP theft 
Beijing pledged to import more US products to narrow its massive trade surplus with the United States following the Argentina talks, but it has given few details about what was agreed.

The White House has said China agreed to purchase a "very substantial" amount of agricultural, energy, industrial and other products from the US to reduce a yawning trade gap. It also will begin buying products from US farmers "immediately".

The two sides will also negotiate "structural changes" on the forced technology transfer, intellectual property protection, cyber intrusions and cyber theft, services and agriculture, according to the White House.

IP theft is a core battleground in the trade war. China's state planner announced Tuesday stiffer punishments for serious violators of IP rights, a move that may help ease Washington's discontent.

Trump also said China would roll back tariffs of 40 percent on cars, though Beijing has yet to confirm the move.

Analysts at Schwab said in a commentary the market was concerned that "uncertainty appears to be resurfacing on whether a permanent deal can be reached."

China vowed Wednesday to move swiftly to strike a trade consensus with the United States, even as mixed signals on the detente from self-described "Tariff Man" Donald Trump's administration upset global markets.

China vowed Wednesday to move swiftly to strike a trade consensus with the United States, even as mixed signals on the detente from self-described "Tariff Man" Donald Trump's administration upset global markets. Trump sowed more confusion as he opened the door to lengthier negotiations with China, suggesting that they could extend beyond a 90-day deadline to reach a deal to avoid a massive tariff increase. But the Chinese commerce ministry said negotiators will "actively push forward negotiations within 90 days in accordance with a clear timetable and roadmap" — marking Beijing's first public acknowledgement of the deadline announced by the US at the weekend. The ministry lauded Trump's talks with President Xi Jinping at the weekend as "successful" and said it was "confident" that their agreement will be implemented. The ministry vowed to start implementing "specific matters" that were agreed -- saying "the sooner the better" -- but it did not provide any details. Trump and Xi agreed on a trade war truce on the sidelines of a G20 summit in Argentina on Saturday, holding off on new tariffs and giving negotiators three months to reach an agreement. China pledged to buy more from the United States and the White House said the two sides would negotiate "structural changes" to intellectual property protection, but few details and no dollar amounts were disclosed. Adding to the confusion, the US leader indicated on Tuesday that the talks could go beyond the March 1 deadline. "The negotiations with China have already started. Unless extended, they will end 90 days from the date of our wonderful and very warm dinner with President Xi in Argentina," Trump tweeted. But the US leader kept up the threats as he warned that he was ready to make China "pay for the privilege" of selling in the US market if the negotiations fail. While he said he would "happily sign" a fair deal that addresses US concerns, he warned: "remember, I am a Tariff Man." 'REAL deal' The change in tone and the increased confusion over what was achieved at the meeting contributed to a sharp decline in the US stock market, which plunged on Tuesday, driven lower by trade worries and fears for future US economic growth. Chinese shares also opened lower on Wednesday. As part of the truce, Trump agreed to hold off on plans to raise the tariffs on $200 billion in Chinese imports to 25 percent beginning January 1, leaving them at the current 10 percent rate. The tone of Trump's latest tweets show an apparent shift from 24 hours earlier, when he was unreservedly triumphant, saying relations with China had taken a "BIG leap forward." On Tuesday, he said US Trade Representative Robert Lighthizer would lead the talks to see "whether or not a REAL deal with China is actually possible." US Treasury Secretary Steven Mnuchin said markets were in a "wait-and-see" mode. "The market is trying to figure out, is there going to be a real deal at the end of 90 days or not," Mnuchin said at a Wall Street Journal event on Tuesday. IP theft Beijing pledged to import more US products to narrow its massive trade surplus with the United States following the Argentina talks, but it has given few details about what was agreed. The White House has said China agreed to purchase a "very substantial" amount of agricultural, energy, industrial and other products from the US to reduce a yawning trade gap. It also will begin buying products from US farmers "immediately". The two sides will also negotiate "structural changes" on the forced technology transfer, intellectual property protection, cyber intrusions and cyber theft, services and agriculture, according to the White House. IP theft is a core battleground in the trade war. China's state planner announced Tuesday stiffer punishments for serious violators of IP rights, a move that may help ease Washington's discontent. Trump also said China would roll back tariffs of 40 percent on cars, though Beijing has yet to confirm the move. Analysts at Schwab said in a commentary the market was concerned that "uncertainty appears to be resurfacing on whether a permanent deal can be reached."

China vows quick trade moves as US sends mixed signals

A modern, comprehensive and mutually beneficial economic partnership agreement for an open trade and investment milieu in the Asia-Pacific region is the core objective of the Regional Comprehensive Economic Partnership (RCEP). &nbsp;

Countries, in diverse stages of development, from Australia, China, Japan and India to the 10 members of the Association of South East Nations (ASEAN) are part of the RCEP, besides South Korea and New Zealand.&nbsp;

Once wrapped up, RCEP would foster the largest regional trading bloc, making up 25 per cent of global GDP, 30 per cent of world trade and 26 per cent of cross-country foreign direct investment (FDI) flows the world over.

While 'substantial progress’ has been claimed by India in negotiations in 2018, a closer look is needed. So far, as many as seven chapters in RCEP encompassing economic and technical cooperation, amongst others, have been concluded. But the crucial one on market negotiations bristle with Indian reservations, as it is not prepared to let its domestic industry smothered by the deluge of cheap goods from the other members, particularly China.&nbsp;

Interestingly, the erstwhile tiger economies of ASEAN want India to eliminate tariffs or customs duties on about 90-92 per cent items that it trades with the countries with which India has a Free Trade Agreement (FTA). These include ASEAN and Japan.&nbsp;

With the non-FTA partners—Australia, New Zealand and China, discussions are on for removing duties on 80 per cent of traded products. New Delhi has asked for a 20-year deadline to end the duties, but with China, it seeks more time for removal of tariffs. &nbsp;

The need for seeking a protracted liberalisation phase with China is based on ground realities. A House Panel report on the impact of Chinese goods on Indian industry, tabled in the monsoon session of Parliament, vehemently argued that “the impact of Chinese imports has been such that India is threatened to become a country of importers and traders with domestic factories either cutting down their production or shutting down completely…”

From raw material to components to final product assembly, the competitive strength of the Middle Kingdom is proven beyond a pale of doubt and that too across several sectors in which the competitive strength of Indian products are ironically, at a disadvantage.

According to the report, the annual year-on-year growth in Chinese imports was about 9 per cent in 2013-14, which had soared to 20 per cent in 2017-18. The trade deficit with China at $63 billion constitutes more than 40 per cent of India’s aggregate trade deficit.&nbsp;

The Chinese goods itself constitute about one-sixth of all imports in terms of quantum in India. In the decade 2007-08 to 2017-18, there has been an increase in India’s exports to China by $2.5 billion only while its imports from China have zoomed by $50 billion during this period. &nbsp; &nbsp; &nbsp;

With sobering statistics such as these, Indian trade envoys are naturally demanding that China should give more and we, in turn, would give China lower concessions and take a longer staging period, given the gargantuan trade deficit with Beijing.

As the core of the marathon talks zero in on market access for goods, services and investment with the deadline deferred to 2019, India might have earned a reprieve from immediate danger to its cocooned domestic sectors.&nbsp;

But as 2019 is an election year in India, the outcome of which will determine whether the proposed RCEP would be wrapped up by the incumbent dispensation or a new one, the fact remains that India must perforce have to undertake structural reforms, including correction of the much-delayed inverted duty structure, liberalisation of the mining sector to spur domestic manufacturing and markedly cut down import of steel, coal, oil and a plethora of other minerals.&nbsp;

The urgent need to be in a mega trading bloc is nowhere crucial than at this juncture when the World Trade Organisation (WTO), is faced with an existential crisis.&nbsp;

The numerous multilateral trade deals under its charge have come to a halt over the past decade. A slew of few trading nations have naturally pitched for regional or preferential free trade agreements (FTAs) among compact number of participants to exchange concessions and move ahead with gains accruing from such liberalised trade.&nbsp;

For India, which has not been in any meaningful regional trading arrangement, but attempted to latch on to a few FTAs that had only brought resentment from local industries, the enduring benefits of trade remain elusive!&nbsp;

To compound the cup of mercantile misery, there is an ongoing trade war between majors, the United States and China, which began slapping retaliatory measures, fouling up the global trading atmosphere and generating a sort of psychosis among others as to how to wade in the choppy waters of overseas markets that have abruptly become protectionist and impermeable. In this dismal scenario, the time to fix the roof can no longer be deferred. 
&nbsp;

(This article was originally published on DNA. Read the&nbsp;<a href="https://www.dnaindia.com/analysis/column-much-rests-on-china-for-rcep-s-rollout-on-schedule-2691979">original article</a>)

(Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL)

&nbsp;

A modern, comprehensive and mutually beneficial economic partnership agreement for an open trade and investment milieu in the Asia-Pacific region is the core objective of the Regional Comprehensive Economic Partnership (RCEP).

A modern, comprehensive and mutually beneficial economic partnership agreement for an open trade and investment milieu in the Asia-Pacific region is the core objective of the Regional Comprehensive Economic Partnership (RCEP). Countries, in diverse stages of development, from Australia, China, Japan and India to the 10 members of the Association of South East Nations (ASEAN) are part of the RCEP, besides South Korea and New Zealand. Once wrapped up, RCEP would foster the largest regional trading bloc, making up 25 per cent of global GDP, 30 per cent of world trade and 26 per cent of cross-country foreign direct investment (FDI) flows the world over. While 'substantial progress’ has been claimed by India in negotiations in 2018, a closer look is needed. So far, as many as seven chapters in RCEP encompassing economic and technical cooperation, amongst others, have been concluded. But the crucial one on market negotiations bristle with Indian reservations, as it is not prepared to let its domestic industry smothered by the deluge of cheap goods from the other members, particularly China. Interestingly, the erstwhile tiger economies of ASEAN want India to eliminate tariffs or customs duties on about 90-92 per cent items that it trades with the countries with which India has a Free Trade Agreement (FTA). These include ASEAN and Japan. With the non-FTA partners—Australia, New Zealand and China, discussions are on for removing duties on 80 per cent of traded products. New Delhi has asked for a 20-year deadline to end the duties, but with China, it seeks more time for removal of tariffs. The need for seeking a protracted liberalisation phase with China is based on ground realities. A House Panel report on the impact of Chinese goods on Indian industry, tabled in the monsoon session of Parliament, vehemently argued that “the impact of Chinese imports has been such that India is threatened to become a country of importers and traders with domestic factories either cutting down their production or shutting down completely…” From raw material to components to final product assembly, the competitive strength of the Middle Kingdom is proven beyond a pale of doubt and that too across several sectors in which the competitive strength of Indian products are ironically, at a disadvantage. According to the report, the annual year-on-year growth in Chinese imports was about 9 per cent in 2013-14, which had soared to 20 per cent in 2017-18. The trade deficit with China at $63 billion constitutes more than 40 per cent of India’s aggregate trade deficit. The Chinese goods itself constitute about one-sixth of all imports in terms of quantum in India. In the decade 2007-08 to 2017-18, there has been an increase in India’s exports to China by $2.5 billion only while its imports from China have zoomed by $50 billion during this period. With sobering statistics such as these, Indian trade envoys are naturally demanding that China should give more and we, in turn, would give China lower concessions and take a longer staging period, given the gargantuan trade deficit with Beijing. As the core of the marathon talks zero in on market access for goods, services and investment with the deadline deferred to 2019, India might have earned a reprieve from immediate danger to its cocooned domestic sectors. But as 2019 is an election year in India, the outcome of which will determine whether the proposed RCEP would be wrapped up by the incumbent dispensation or a new one, the fact remains that India must perforce have to undertake structural reforms, including correction of the much-delayed inverted duty structure, liberalisation of the mining sector to spur domestic manufacturing and markedly cut down import of steel, coal, oil and a plethora of other minerals. The urgent need to be in a mega trading bloc is nowhere crucial than at this juncture when the World Trade Organisation (WTO), is faced with an existential crisis. The numerous multilateral trade deals under its charge have come to a halt over the past decade. A slew of few trading nations have naturally pitched for regional or preferential free trade agreements (FTAs) among compact number of participants to exchange concessions and move ahead with gains accruing from such liberalised trade. For India, which has not been in any meaningful regional trading arrangement, but attempted to latch on to a few FTAs that had only brought resentment from local industries, the enduring benefits of trade remain elusive! To compound the cup of mercantile misery, there is an ongoing trade war between majors, the United States and China, which began slapping retaliatory measures, fouling up the global trading atmosphere and generating a sort of psychosis among others as to how to wade in the choppy waters of overseas markets that have abruptly become protectionist and impermeable. In this dismal scenario, the time to fix the roof can no longer be deferred. (This article was originally published on DNA. Read the original article) (Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL)

Much rests on China for RCEP’s rollout on schedule

<a href="http://www.wionews.com/world/expect-china-to-roll-back-retaliatory-farm-tariffs-quickly-white-house-181294">We expect China to roll back retaliatory farm tariffs 'quickly': White House</a>

The United States expects China will remove retaliatory tariffs on US farm products "quickly" as part of the trade truce reached over the weekend, White House economic advisor Larry Kudlow said Monday.

Beijing retaliated with steep duties on US crops in the trade war which has seen President Donald Trump hit $250 billion in Chinese goods with tariffs of 10-25 percent.

As a result, soybean exports to China have plunged, harming US farmers.

 
<a href="http://www.wionews.com/sports/luka-modric-wins-2018-ballon-dor-breaks-messi-ronaldo-dominance-181279">Luka Modric wins 2018 Ballon d'Or, breaks Messi-Ronaldo dominance</a>

Real Madrid's Croatia midfielder Luka Modric was named winner of the 2018 Ballon d'Or on Monday, breaking Cristiano Ronaldo's and Lionel Messi's decade-long hold on the prestigious award.

Juventus forward and 2017 winner Ronaldo came second, while Atletico Madrid and France striker Antoine Griezmann came third.

Paris St Germain's France forward Kylian Mbappe, who also collected the Kopa award for the best under-21 player, was fourth, with Barca forward Messi finishing fifth.

 
<a href="http://www.wionews.com/world/japanese-prosecutors-to-arrest-ghosn-on-fresh-claim-prolonging-detention-report-181300">Japanese prosecutors to arrest Ghosn on </a><a href="http://www.wionews.com/world/japanese-prosecutors-to-arrest-ghosn-on-fresh-claim-prolonging-detention-report-181300">fresh</a><a href="http://www.wionews.com/world/japanese-prosecutors-to-arrest-ghosn-on-fresh-claim-prolonging-detention-report-181300"> claim, prolonging detention: Report</a>

Tokyo prosecutors plan to arrest Carlos Ghosn on a fresh claim of understating his income, the Sankei newspaper reported on Tuesday, in a move that could keep the former chairman of Nissan Motor Co in detention until the end of the year.

 
<a href="http://www.wionews.com/world/washington-pays-respects-to-bush-as-he-lies-in-state-at-capitol-181285">Washington pays its last respects to George HW Bush as he lies in state at Capitol</a>

Washington's political elite paid tribute to former US President George HW Bush as his body lay in state in the Capitol on Monday, evoking a bygone era of bipartisan civility in American politics.

Before a visibly moved Bush family and with hands on hearts, members of Bush's Cabinet, lawmakers, the vice president and Supreme Court justices honoured the 41st president as his flag-draped casket entered the soaring Capitol Rotunda for the first official ceremony.

 
<a href="http://www.wionews.com/world/us-farmers-more-cautious-than-hopeful-after-china-trade-deal-181303">US farmers more cautious than hopeful after China trade deal</a>

President Donald Trump says American farmers will see immediate benefits from the trade detente with Beijing, but farm belt representatives are still cautious about declaring victory.

We expect China to roll back retaliatory farm tariffs 'quickly': White House The United States expects China will remove retaliatory tariffs on US farm products "quickly" as part of the trade truce reached over the weekend, White House economic advisor Larry Kudlow said Monday.

We expect China to roll back retaliatory farm tariffs 'quickly': White House The United States expects China will remove retaliatory tariffs on US farm products "quickly" as part of the trade truce reached over the weekend, White House economic advisor Larry Kudlow said Monday. Beijing retaliated with steep duties on US crops in the trade war which has seen President Donald Trump hit $250 billion in Chinese goods with tariffs of 10-25 percent. As a result, soybean exports to China have plunged, harming US farmers. Luka Modric wins 2018 Ballon d'Or, breaks Messi-Ronaldo dominance Real Madrid's Croatia midfielder Luka Modric was named winner of the 2018 Ballon d'Or on Monday, breaking Cristiano Ronaldo's and Lionel Messi's decade-long hold on the prestigious award. Juventus forward and 2017 winner Ronaldo came second, while Atletico Madrid and France striker Antoine Griezmann came third. Paris St Germain's France forward Kylian Mbappe, who also collected the Kopa award for the best under-21 player, was fourth, with Barca forward Messi finishing fifth. Japanese prosecutors to arrest Ghosn on fresh claim, prolonging detention: Report Tokyo prosecutors plan to arrest Carlos Ghosn on a fresh claim of understating his income, the Sankei newspaper reported on Tuesday, in a move that could keep the former chairman of Nissan Motor Co in detention until the end of the year. Washington pays its last respects to George HW Bush as he lies in state at Capitol Washington's political elite paid tribute to former US President George HW Bush as his body lay in state in the Capitol on Monday, evoking a bygone era of bipartisan civility in American politics. Before a visibly moved Bush family and with hands on hearts, members of Bush's Cabinet, lawmakers, the vice president and Supreme Court justices honoured the 41st president as his flag-draped casket entered the soaring Capitol Rotunda for the first official ceremony. US farmers more cautious than hopeful after China trade deal President Donald Trump says American farmers will see immediate benefits from the trade detente with Beijing, but farm belt representatives are still cautious about declaring victory.

News brief: Big stories of the day

President Donald Trump says American farmers will see immediate benefits from the trade detente with Beijing, but farm belt representatives are still cautious about declaring victory.

Trump took to Twitter Monday to declare that his weekend agreement with Xi Jinping for a cease-fire on new trade tariffs meant "Farmers will be a very BIG and FAST beneficiary of our deal with China," with the Chinese to resume purchases of US agricultural goods "immediately."

Trump's comments were followed by White House economic advisor Larry Kudlow, who told a press briefing that he expects Chinese tariffs on US farm goods would be removed "quickly," without elaborating.

The Chinese tariffs, imposed since July, have badly bruised some segments of agriculture, such as soybeans. US soybean exports to China since September 1 have fallen to 339,000 tons from nearly 15 million tons in the year-ago period.

And even if some of those items found buyers in other markets, soy exports overall during the same period were 11.9 million tons, down from 21.0 million in the 2017 period.

But the US-China agreement, struck on the sidelines of a G-20 summit in Argentina, could provide relief. Chinese state-run media hailed the trade war truce with the United States as "momentous," while warning that complex negotiations lay ahead.

- Still waiting - 
A survey of several representatives of the US farm belt showed a range of responses, all at least somewhat positive, but none as effusive as from the White House.&nbsp;

"This is the first positive news we've seen after months of downturned prices and halted shipments," said John Heisdorffer, a soybean grower from Keota, Iowa.

"If this suspension of tariff increases leads to a longer-term agreement, it will be extremely positive for the soy industry."

Already Monday, the trade announcement boosted soybean prices, with futures of the commodity rising 1.2 percent in Chicago.

But without additional details, others in US agriculture were reticent to applaud too loudly.

"We have no number or timeframe...at all," said David Salmonsen, chief trade expert at the American Farm Bureau, adding, "not until we see Chinese companies executing contracts."

Big soybean contracts are usually secured between October and March, Salmonsen said, adding that there had been very few deals struck this fall.&nbsp;

"Everything right now is based on the good words of the two presidents," said Chad Hart, an economics professor at Iowa State University.&nbsp;

"The expectation is that there is agreement for significant purchases on the agricultural side," Hart said. "But it's unlikely to be done until the tariffs are reduced."

Hart said there could be some contracts soon from Chinese government buyers but that most private Chinese companies would await further action.

Some observers noted that the two sides were still far from resolving the thorny details of the broader US-China trade conflict.

"It's no step forward –- if there's any positive from it, it's that they've hit the pause button on further escalation," said Andrew Jerome, a spokesman for the National Farmers Union.

"From our point of view, no tariffs have been eliminated, none of China's bad trade policies have been addressed and probably most importantly we have lost our reputation as a reliable trading partner and, therefore, stable markets in China and elsewhere long-term." 
&nbsp;

President Donald Trump says American farmers will see immediate benefits from the trade detente with Beijing, but farm belt representatives are still cautious about declaring victory.

President Donald Trump says American farmers will see immediate benefits from the trade detente with Beijing, but farm belt representatives are still cautious about declaring victory. Trump took to Twitter Monday to declare that his weekend agreement with Xi Jinping for a cease-fire on new trade tariffs meant "Farmers will be a very BIG and FAST beneficiary of our deal with China," with the Chinese to resume purchases of US agricultural goods "immediately." Trump's comments were followed by White House economic advisor Larry Kudlow, who told a press briefing that he expects Chinese tariffs on US farm goods would be removed "quickly," without elaborating. The Chinese tariffs, imposed since July, have badly bruised some segments of agriculture, such as soybeans. US soybean exports to China since September 1 have fallen to 339,000 tons from nearly 15 million tons in the year-ago period. And even if some of those items found buyers in other markets, soy exports overall during the same period were 11.9 million tons, down from 21.0 million in the 2017 period. But the US-China agreement, struck on the sidelines of a G-20 summit in Argentina, could provide relief. Chinese state-run media hailed the trade war truce with the United States as "momentous," while warning that complex negotiations lay ahead. - Still waiting - A survey of several representatives of the US farm belt showed a range of responses, all at least somewhat positive, but none as effusive as from the White House. "This is the first positive news we've seen after months of downturned prices and halted shipments," said John Heisdorffer, a soybean grower from Keota, Iowa. "If this suspension of tariff increases leads to a longer-term agreement, it will be extremely positive for the soy industry." Already Monday, the trade announcement boosted soybean prices, with futures of the commodity rising 1.2 percent in Chicago. But without additional details, others in US agriculture were reticent to applaud too loudly. "We have no number or timeframe...at all," said David Salmonsen, chief trade expert at the American Farm Bureau, adding, "not until we see Chinese companies executing contracts." Big soybean contracts are usually secured between October and March, Salmonsen said, adding that there had been very few deals struck this fall. "Everything right now is based on the good words of the two presidents," said Chad Hart, an economics professor at Iowa State University. "The expectation is that there is agreement for significant purchases on the agricultural side," Hart said. "But it's unlikely to be done until the tariffs are reduced." Hart said there could be some contracts soon from Chinese government buyers but that most private Chinese companies would await further action. Some observers noted that the two sides were still far from resolving the thorny details of the broader US-China trade conflict. "It's no step forward –- if there's any positive from it, it's that they've hit the pause button on further escalation," said Andrew Jerome, a spokesman for the National Farmers Union. "From our point of view, no tariffs have been eliminated, none of China's bad trade policies have been addressed and probably most importantly we have lost our reputation as a reliable trading partner and, therefore, stable markets in China and elsewhere long-term."

US farmers more cautious than hopeful after China trade deal

The United States expects China will remove retaliatory tariffs on US farm products "quickly" as part of <a href="http://www.wionews.com/world/trump-and-china-called-a-truce-in-the-trade-war-now-what-181070">the trade truce reached over the weekend</a>, White House economic advisor Larry Kudlow said Monday.

Beijing retaliated with steep duties on US crops in the trade war which has seen President Donald Trump hit $250 billion in Chinese goods with tariffs of 10-25 percent.

As a result, soybean exports to China have plunged, harming US farmers.

"My expectation is that China will roll back those tariffs quickly," Kudlow told reporters.

Kudlow stressed that Chinese officials repeatedly said the trade commitments announced after Trump's dinner with China's President Xi Jinping would be implemented "immediately." But he acknowledged that it was unclear what that would mean.

He said it would give the weekend deal "more credibility" if Beijing followed through with some immediate steps.

"Let's get rolling folks. Today is Monday. The dinner was Saturday," Kudlow said.

Likewise he said there was a commitment to remove China's punitive tariffs on US auto exports, and while there was no agreement on the final level "I expect those tariffs to go to zero."

The leaders committed to a 90-day truce in the trade confrontation, and while Kudlow said the "history is not great" with China on trade, he was optimistic.&nbsp;

"We've never been close to this."

The United States expects China will remove retaliatory tariffs on US farm products "quickly" as part of the trade truce reached over the weekend, White House economic advisor Larry Kudlow said Monday.

The United States expects China will remove retaliatory tariffs on US farm products "quickly" as part of the trade truce reached over the weekend, White House economic advisor Larry Kudlow said Monday. Beijing retaliated with steep duties on US crops in the trade war which has seen President Donald Trump hit $250 billion in Chinese goods with tariffs of 10-25 percent. As a result, soybean exports to China have plunged, harming US farmers. "My expectation is that China will roll back those tariffs quickly," Kudlow told reporters. Kudlow stressed that Chinese officials repeatedly said the trade commitments announced after Trump's dinner with China's President Xi Jinping would be implemented "immediately." But he acknowledged that it was unclear what that would mean. He said it would give the weekend deal "more credibility" if Beijing followed through with some immediate steps. "Let's get rolling folks. Today is Monday. The dinner was Saturday," Kudlow said. Likewise he said there was a commitment to remove China's punitive tariffs on US auto exports, and while there was no agreement on the final level "I expect those tariffs to go to zero." The leaders committed to a 90-day truce in the trade confrontation, and while Kudlow said the "history is not great" with China on trade, he was optimistic. "We've never been close to this."

We expect China to roll back retaliatory farm tariffs 'quickly': White House

Oil prices jumped by more than 5 per cent on Monday after the <a href="http://www.wionews.com/world/trump-and-china-called-a-truce-in-the-trade-war-now-what-181070">United States and China</a> agreed to a 90-day truce in a trade dispute, and ahead of a meeting this week of the producer club OPEC that is expected to cut supply.

US&nbsp;light crude oil rose $2.92 a barrel to a high of $53.85, up 5.7 per cent, before easing to around $53.00 by 0930 GMT. Brent crude rose 5.3 per cent or $3.14 to a high of $62.60 and was last trading around $61.60.

"From Argentina to Alberta, the oil market news is about supply curtailments," said Norbert Rücker, head of commodity research at Swiss bank Julius Baer. "A brightening market mood will likely extend today's price rally in the very near term."

<a href="http://www.wionews.com/world/us-china-agree-to-trade-war-ceasefire-more-talks-180930">China and the United States</a> agreed during a weekend meeting in Argentina of the Group of 20 leading economies not to impose additional trade tariffs for at least 90 days while they hold talks to resolve existing disputes.

The trade war between the world's two biggest economies has weighed heavily on global trade, sparking concerns of an economic slowdown.

Crude oil has not been included in the list of products facing import tariffs, but traders said the positive sentiment of the truce was also driving crude markets.

Oil also received support from an announcement by the Canadian province of Alberta that it would force producers to cut output by 8.7 per cent, or 325,000 barrels per day (bpd), to deal with a pipeline bottleneck that has led to crude building up in storage.

The Organization of the Petroleum Exporting Countries meets on Dec. 6 to decide output policy. The group, along with non-OPEC member Russia, is expected to announce cuts aimed at reining in a production surplus that has pulled down crude prices by around a third since October.

"Markets are expecting to see a substantial production cut after Russian President Vladimir Putin said his country's cooperation on oil supplies with Saudi Arabia would continue," said Hussein Sayed, chief market strategist at brokerage FXTM.

Within OPEC, Qatar said on Monday it would leave the producer club in January.

Qatar's oil production is only around 600,000 bpd, but it is the world's biggest exporter of liquefied natural gas (LNG).

The Gulf state has also been at loggerheads with its much bigger neighbour Saudi Arabia, the de facto OPEC leader.

Outside OPEC, Russian oil output stood at 11.37 million bpd in November, down from a post-Soviet record of 11.41 million bpd it reached in October, Energy Ministry data showed on Sunday.

Meanwhile, oil producers in the United States continue to churn out record amounts of oil, with crude output at an unprecedented level of more than 11.5 million bpd.

With drilling activity still high, most analysts expect US&nbsp;oil production to rise further in 2019.

Oil prices jumped by more than 5 per cent on Monday after the United States and China agreed to a 90-day truce in a trade dispute, and ahead of a meeting this week of the producer club OPEC that is expected to cut supply.

Oil prices jumped by more than 5 per cent on Monday after the United States and China agreed to a 90-day truce in a trade dispute, and ahead of a meeting this week of the producer club OPEC that is expected to cut supply. US light crude oil rose $2.92 a barrel to a high of $53.85, up 5.7 per cent, before easing to around $53.00 by 0930 GMT. Brent crude rose 5.3 per cent or $3.14 to a high of $62.60 and was last trading around $61.60. "From Argentina to Alberta, the oil market news is about supply curtailments," said Norbert Rücker, head of commodity research at Swiss bank Julius Baer. "A brightening market mood will likely extend today's price rally in the very near term." China and the United States agreed during a weekend meeting in Argentina of the Group of 20 leading economies not to impose additional trade tariffs for at least 90 days while they hold talks to resolve existing disputes. The trade war between the world's two biggest economies has weighed heavily on global trade, sparking concerns of an economic slowdown. Crude oil has not been included in the list of products facing import tariffs, but traders said the positive sentiment of the truce was also driving crude markets. Oil also received support from an announcement by the Canadian province of Alberta that it would force producers to cut output by 8.7 per cent, or 325,000 barrels per day (bpd), to deal with a pipeline bottleneck that has led to crude building up in storage. The Organization of the Petroleum Exporting Countries meets on Dec. 6 to decide output policy. The group, along with non-OPEC member Russia, is expected to announce cuts aimed at reining in a production surplus that has pulled down crude prices by around a third since October. "Markets are expecting to see a substantial production cut after Russian President Vladimir Putin said his country's cooperation on oil supplies with Saudi Arabia would continue," said Hussein Sayed, chief market strategist at brokerage FXTM. Within OPEC, Qatar said on Monday it would leave the producer club in January. Qatar's oil production is only around 600,000 bpd, but it is the world's biggest exporter of liquefied natural gas (LNG). The Gulf state has also been at loggerheads with its much bigger neighbour Saudi Arabia, the de facto OPEC leader. Outside OPEC, Russian oil output stood at 11.37 million bpd in November, down from a post-Soviet record of 11.41 million bpd it reached in October, Energy Ministry data showed on Sunday. Meanwhile, oil producers in the United States continue to churn out record amounts of oil, with crude output at an unprecedented level of more than 11.5 million bpd. With drilling activity still high, most analysts expect US oil production to rise further in 2019.

Ahead of OPEC meeting, oil prices jump 5%

US&nbsp;President Donald Trump said on Sunday that <a href="http://www.wionews.com/world/the-trump-china-trade-war-how-will-it-end-171248">China had agreed to cut import tariffs on American-made cars</a>, a potential boon for automakers including Tesla Inc and BMW who manufacture in the United States for export to China.

Trump, fresh from agreeing a 90-day cease-fire in his trade war with China at the meeting of the G20, said on Twitter that "China has agreed to reduce and remove tariffs on cars coming into China from the U.S. Currently the tariff is 40%."

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China has agreed to reduce and remove tariffs on cars coming into China from the U.S. Currently the tariff is 40%.
— Donald J. Trump (@realDonaldTrump) <a href="https://twitter.com/realDonaldTrump/status/1069441198157455360?ref_src=twsrc%5Etfw">December 3, 2018</a></blockquote>
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The move, if realised, would bolster US&nbsp;car manufacturers who were hit hard when China ramped up levies on US-made cars in July as part of a broad package of retaliatory tariffs amid a sprawling trade war between Washington and Beijing.

China, the world's largest auto market, raised tariffs on US&nbsp;auto imports to 40 percent in July, forcing many carmakers to hike prices in a major hit to the roughly $10 billion worth of passenger vehicles the United States sent to China last year.

That put US-made car brands like Tesla and Ford Motor Co's Lincoln at a major disadvantage, soon after China slashed auto import tariffs broadly to 15 percent for most vehicles.

Trump's tweet did not give any further detail about the tariff cuts, such as when the deal had been reached or a new level for the Chinese levies.

The White House and U.S. Trade Representative's (USTR) office did not immediately respond to a request for comment late on Sunday. China's commerce and finance ministries did not respond to requests for comment on Monday.

After a 2-1/2 hour dinner with Xi on Saturday in Buenos Aires, Trump agreed to postpone an increase in the tariff rate on $200 billion worth of Chinese imports to 25 percent from 10 percent that was scheduled for Jan. 1. China agreed to resume purchases of some U.S. farm and energy commodities.

The two sides also agreed to negotiate during the next 90 days over "structural changes" to China's policies on technology transfers, intellectual property protection, non-tariff barriers, cyber intrusions and cyber theft, services and agriculture.

Major U.S. automakers said they were unaware of the lower tariffs on exports to China. The automakers have a previously scheduled meeting with USTR on Monday, two people briefed on the matter told Reuters.

The lower tariffs would be a boost to automakers exporting vehicles to China, including Ford and German carmaker BMW, which exports U.S.-built luxury vehicles to China.

It would also be good news for Tesla, which has been hit hard by increased tariffs on the electric cars it imports to China. The U.S. firm has said it will cut prices to absorb more of the tariffs and is building a local plant in Shanghai.

While China had lowered its general tariff rate for imported cars to 15 percent from 25 percent this year, it had slapped on a 25 percent punitive tariff on American-made vehicles, bringing the rate back up to 40 percent. The United States currently charges tariffs of 27.5 percent on Chinese vehicles.

On Wednesday, U.S. Trade Representative Robert Lighthizer said Trump had directed him to examine all available tools to raise U.S. tariffs on Chinese vehicles to the level that China is charging.

US President Donald Trump said on Sunday that China had agreed to cut import tariffs on American-made cars, a potential boon for automakers including Tesla Inc and BMW who manufacture in the United States for export to China.

US President Donald Trump said on Sunday that China had agreed to cut import tariffs on American-made cars, a potential boon for automakers including Tesla Inc and BMW who manufacture in the United States for export to China. Trump, fresh from agreeing a 90-day cease-fire in his trade war with China at the meeting of the G20, said on Twitter that "China has agreed to reduce and remove tariffs on cars coming into China from the U.S. Currently the tariff is 40%." China has agreed to reduce and remove tariffs on cars coming into China from the U.S. Currently the tariff is 40%. — Donald J. Trump (@realDonaldTrump) December 3, 2018 × The move, if realised, would bolster US car manufacturers who were hit hard when China ramped up levies on US-made cars in July as part of a broad package of retaliatory tariffs amid a sprawling trade war between Washington and Beijing. China, the world's largest auto market, raised tariffs on US auto imports to 40 percent in July, forcing many carmakers to hike prices in a major hit to the roughly $10 billion worth of passenger vehicles the United States sent to China last year. That put US-made car brands like Tesla and Ford Motor Co's Lincoln at a major disadvantage, soon after China slashed auto import tariffs broadly to 15 percent for most vehicles. Trump's tweet did not give any further detail about the tariff cuts, such as when the deal had been reached or a new level for the Chinese levies. The White House and U.S. Trade Representative's (USTR) office did not immediately respond to a request for comment late on Sunday. China's commerce and finance ministries did not respond to requests for comment on Monday. After a 2-1/2 hour dinner with Xi on Saturday in Buenos Aires, Trump agreed to postpone an increase in the tariff rate on $200 billion worth of Chinese imports to 25 percent from 10 percent that was scheduled for Jan. 1. China agreed to resume purchases of some U.S. farm and energy commodities. The two sides also agreed to negotiate during the next 90 days over "structural changes" to China's policies on technology transfers, intellectual property protection, non-tariff barriers, cyber intrusions and cyber theft, services and agriculture. Major U.S. automakers said they were unaware of the lower tariffs on exports to China. The automakers have a previously scheduled meeting with USTR on Monday, two people briefed on the matter told Reuters. The lower tariffs would be a boost to automakers exporting vehicles to China, including Ford and German carmaker BMW, which exports U.S.-built luxury vehicles to China. It would also be good news for Tesla, which has been hit hard by increased tariffs on the electric cars it imports to China. The U.S. firm has said it will cut prices to absorb more of the tariffs and is building a local plant in Shanghai. While China had lowered its general tariff rate for imported cars to 15 percent from 25 percent this year, it had slapped on a 25 percent punitive tariff on American-made vehicles, bringing the rate back up to 40 percent. The United States currently charges tariffs of 27.5 percent on Chinese vehicles. On Wednesday, U.S. Trade Representative Robert Lighthizer said Trump had directed him to examine all available tools to raise U.S. tariffs on Chinese vehicles to the level that China is charging.

Trump says China has agreed to cut tariffs on US-made cars

US President <a href="http://www.wionews.com/world/us-says-it-is-suspending-new-china-tariffs-for-90-days-180809">Donald Trump and China's Xi Jinping agreed Saturday to suspend any new tariffs</a> in the escalating trade war between the world's two largest economies, even if huge existing duties will remain in place.

Following more than two hours of dinner talks between the two leaders, the White House said an increase of tariffs from 10 to 25 per cent due to kick in on January 1 would now be put on hold, providing room for intense negotiations.&nbsp;

The agreement hashed out over steak in the Argentine capital Buenos Aires, lowers the temperature in a conflict that has spooked world markets.

The two leaders, who were in Buenos Aires for a summit of the G20 countries, called it "a highly successful meeting," the White House said.

"The principal agreement has effectively prevented further expansion of economic friction between the two countries and has opened up new space for win-win cooperation," said Chinese Foreign Minister Wang Yi.

Partial truce

Under the agreement, Trump is shelving a plan to raise existing tariffs of 10 per cent to 25 per cent from the start of next year.

Xi avoids further immediate pressure on China's slowing economy, while Trump -- hit by the US Democrats' congressional win in last month's mid-term elections -- can ease damage to agricultural US states that export to China, particularly the key soybean crop.

"This was a rare opportunity for China because (the mid-terms) made Trump a lame president," said Beijing-based political consultant Hua Po.

"So at this time it was acceptable for China to maintain some bottom lines while making some major concessions."

But Brad Setser, a former Treasury official and now senior fellow at the Council on Foreign Relations in Washington, told Bloomberg much remains to be done.

"The hard part is finding the basis for a real deal that settles the broader issues rather than agreeing on a pause," Setser said.

The truce is only partial.

Some $50 billion worth of Chinese imports already face 25 per cent tariffs, while the 10 per cent tariffs -- which target a massive $200 billion in goods -- will also remain in effect.&nbsp;

Meanwhile, China has targeted $110 billion worth of US imports for tariffs.&nbsp;

If there is any further retaliation, Trump has warned, he will slap punitive duties on the remaining $267 billion in Chinese goods coming to the United States.

And Saturday's truce also contained an ultimatum.

The White House made clear that the 10 per cent tariffs would still leap up to 25 per cent if China doesn't meet US demands in 90 days.

These include China stopping a host of trade barriers, intellectual property theft and other actions that Washington says make fair trade impossible.&nbsp;

Tough negotiations lie ahead, but Trump was upbeat.

"This was an amazing and productive meeting with unlimited possibilities for both the United States and China," he said in a statement.

Steaks and high stakes

The meeting -- featuring a menu of sirloin steak, caramel rolled pancakes and Argentine wine -- went on longer than scheduled.&nbsp;

And while it may have been tacked on to the end of two days of G20 diplomacy, it was in many ways the main event of the weekend.

German Chancellor Angela Merkel, who was also attending the G20, spoke for many when she urged progress.

"We all realize that we are indirectly influenced by the fact that Sino-American economic relations are not running as smoothly as a world order needs," she said.

Personal chemistry factor

On the US side at the dinner, Trump was accompanied by advisers such as Larry Kudlow and Treasury Secretary Steven Mnuchin, who are widely seen as wanting a deal.

But hawkish advisers like Peter Navarro and US Trade Representative Robert Lighthizer were also present.&nbsp;

Trump, as often in his diplomatic dealings, appears to consider his personal chemistry with Xi the most important factor in the success of the negotiations.

He has prided himself on building a good relationship with the Chinese leader, even though he acknowledges it may have trouble surviving the growing crisis.

At the dinner, Trump said his ties to Xi were "a very primary reason" for considering a deal possible.

US President Donald Trump and China's Xi Jinping agreed Saturday to suspend any new tariffs in the escalating trade war between the world's two largest economies, even if huge existing duties will remain in place.

US President Donald Trump and China's Xi Jinping agreed Saturday to suspend any new tariffs in the escalating trade war between the world's two largest economies, even if huge existing duties will remain in place. Following more than two hours of dinner talks between the two leaders, the White House said an increase of tariffs from 10 to 25 per cent due to kick in on January 1 would now be put on hold, providing room for intense negotiations. The agreement hashed out over steak in the Argentine capital Buenos Aires, lowers the temperature in a conflict that has spooked world markets. The two leaders, who were in Buenos Aires for a summit of the G20 countries, called it "a highly successful meeting," the White House said. "The principal agreement has effectively prevented further expansion of economic friction between the two countries and has opened up new space for win-win cooperation," said Chinese Foreign Minister Wang Yi. Partial truce Under the agreement, Trump is shelving a plan to raise existing tariffs of 10 per cent to 25 per cent from the start of next year. Xi avoids further immediate pressure on China's slowing economy, while Trump -- hit by the US Democrats' congressional win in last month's mid-term elections -- can ease damage to agricultural US states that export to China, particularly the key soybean crop. "This was a rare opportunity for China because (the mid-terms) made Trump a lame president," said Beijing-based political consultant Hua Po. "So at this time it was acceptable for China to maintain some bottom lines while making some major concessions." But Brad Setser, a former Treasury official and now senior fellow at the Council on Foreign Relations in Washington, told Bloomberg much remains to be done. "The hard part is finding the basis for a real deal that settles the broader issues rather than agreeing on a pause," Setser said. The truce is only partial. Some $50 billion worth of Chinese imports already face 25 per cent tariffs, while the 10 per cent tariffs -- which target a massive $200 billion in goods -- will also remain in effect. Meanwhile, China has targeted $110 billion worth of US imports for tariffs. If there is any further retaliation, Trump has warned, he will slap punitive duties on the remaining $267 billion in Chinese goods coming to the United States. And Saturday's truce also contained an ultimatum. The White House made clear that the 10 per cent tariffs would still leap up to 25 per cent if China doesn't meet US demands in 90 days. These include China stopping a host of trade barriers, intellectual property theft and other actions that Washington says make fair trade impossible. Tough negotiations lie ahead, but Trump was upbeat. "This was an amazing and productive meeting with unlimited possibilities for both the United States and China," he said in a statement. Steaks and high stakes The meeting -- featuring a menu of sirloin steak, caramel rolled pancakes and Argentine wine -- went on longer than scheduled. And while it may have been tacked on to the end of two days of G20 diplomacy, it was in many ways the main event of the weekend. German Chancellor Angela Merkel, who was also attending the G20, spoke for many when she urged progress. "We all realize that we are indirectly influenced by the fact that Sino-American economic relations are not running as smoothly as a world order needs," she said. Personal chemistry factor On the US side at the dinner, Trump was accompanied by advisers such as Larry Kudlow and Treasury Secretary Steven Mnuchin, who are widely seen as wanting a deal. But hawkish advisers like Peter Navarro and US Trade Representative Robert Lighthizer were also present. Trump, as often in his diplomatic dealings, appears to consider his personal chemistry with Xi the most important factor in the success of the negotiations. He has prided himself on building a good relationship with the Chinese leader, even though he acknowledges it may have trouble surviving the growing crisis. At the dinner, Trump said his ties to Xi were "a very primary reason" for considering a deal possible.

US, China agree to trade war ceasefire, talks to continue