A day after China announced reaching "<a href="https://www.wionews.com/world/phase-one-trade-deal-reached-with-us-china-268186">phase one" trade agreement with the United States</a>, Chinese Foreign Minister Wang Yi said the deal will is good news for all.

Yi added that the agreement will "provide stability in global trade", news agency Reuters reported.&nbsp;

His comments came on the sidelines on his visit to Slovenia on Saturday.

Yi said that there were still many issues between China and the United States that needed to be addressed, Reuters reported.&nbsp;

"Phase one" trade deal with the United States has been reached, China announced on Friday.

Beijing added that Washington will be removing tariffs 'phase by phase,' AFP reported.&nbsp;

China's vice commerce minister Wang Shouwen said that part of the "phase one" trade deal with the US includes a progressive rollback of tariffs that have threatened to roil the global economy.

"The two countries have agreed on the text of a phase one trade and economic deal," Shouwen said at a news conference, adding that the two sides now have to sign the agreement.

On Wednesday, the Bloomberg had reported the US and China are moving closer to "agreeing on the amount of tariffs to be rolled back in a phase-one trade deal," Reuters reported.

(With inputs from agencies)&nbsp;

&nbsp;

A day after China announced reaching "phase one" trade agreement with the United States, Chinese Foreign Minister Wang Yi said the deal will is good news for all.

A day after China announced reaching "phase one" trade agreement with the United States, Chinese Foreign Minister Wang Yi said the deal will is good news for all. Yi added that the agreement will "provide stability in global trade", news agency Reuters reported. His comments came on the sidelines on his visit to Slovenia on Saturday. Yi said that there were still many issues between China and the United States that needed to be addressed, Reuters reported. "Phase one" trade deal with the United States has been reached, China announced on Friday. Beijing added that Washington will be removing tariffs 'phase by phase,' AFP reported. China's vice commerce minister Wang Shouwen said that part of the "phase one" trade deal with the US includes a progressive rollback of tariffs that have threatened to roil the global economy. "The two countries have agreed on the text of a phase one trade and economic deal," Shouwen said at a news conference, adding that the two sides now have to sign the agreement. On Wednesday, the Bloomberg had reported the US and China are moving closer to "agreeing on the amount of tariffs to be rolled back in a phase-one trade deal," Reuters reported. (With inputs from agencies)

China-US trade deal good news for all: Chinese foreign minister Wang Yi 

The United States was poised Thursday to announce a historic trade deal with China, days before new tariffs are due to kick in between the world's two largest economies, easing a commercial dispute that has roiled markets for almost two years.

The United States was poised Thursday to announce a historic trade deal with China, days before new tariffs are due to kick in between the world's two largest economies, easing a commercial dispute that has roiled markets for almost two years. Reports that Washington and Beijing had struck a bargain at last -- subject to approval by US President Donald Trump -- sent US stocks sailing to their first record closes of December. "Getting VERY close to a BIG DEAL with China. They want it, and so do we!" Trump tweeted in a markedly optimistic tone, although it was unclear if he would officially confirm the agreement on Thursday. Trump's flagging of an imminent breakthrough comes ahead of new tariffs planned to take effect Sunday and also just as he is almost sure to become only the third US president to be impeached. With his 2020 re-election battle heating up Trump is keen to seize the political initiative and show voters his punishing struggle with China has brought results. The US ultimately wants China to open its vast economy to more goods and to conduct sweeping reforms of what Washington has long called systemic abuse against foreign investors. Recently, though, White House officials have indicated they would settle for less in a so-called "phase one" deal. The Washington Post reported that Trump had signed off on a swap of tariff reductions in return for China spending $50 billion on US farm goods, tightening its intellectual property protections and opening its financial services markets. The paper cited Michael Pillsbury, a China expert at the Washington-based Hudson Institute it said had been briefed by Trump, and an unnamed senior administration official. The paper reported that plans for an official announcement had not been nailed down, adding that the administration does not intend to seek congressional approval. China's commerce ministry said Thursday the two sides were in "close" contact ahead of Sunday's deadline. Dodging new tariffs bullet In addition to existing tariffs, Trump had threatened to impose a 15 per cent levy Sunday on around $160 billion of Chinese exports, including popular US consumer goods like electronics and clothing. China had previously said it would respond with a 25 per cent tariff on US autos and a five per cent tariff on auto parts -- levies that were suspended earlier this year as a goodwill gesture. According to The Wall Street Journal, the US side is offering to scrap the threatened Sunday tariffs and also cut existing duties imposed on about $360 billion in Chinese goods. Trump's overall goal with China, a keystone of his presidency, is to uproot what Washington says are Beijing's predatory trade practices, including forced technology transfers and massive intellectual property theft. Trump himself has blown hot and cold, repeatedly insisting that China needs a deal more than the United States does. At the end of November, he said he was in the "final throes" of negotiations, but days later he spooked world financial markets when he said "I have no deadline" for a resolution. The intense talks, involving multiple trips by teams from both sides to and from Washington and Beijing, were further complicated by tensions over the pro-democracy uprising in Hong Kong. Trump, somewhat reluctantly, signed a law passed with overwhelming congressional support in November that backs the Hong Kong demonstrators. Beijing responded that the law was "abominable" and "sinister," but ultimately appeared to have little in the way of counter-measures.

US on verge of landmark China trade deal: Trump

China's foreign minister on Friday accused the United States of "seriously" damaging trust between the two countries amid tensions over human rights in Xinjiang and protests in Hong Kong.

The two countries have been locked in a trade dispute for almost two years, while rights issues in China's northwest region of Xinjiang and Hong Kong have further strained diplomatic relations.

The United States has "seriously damaged the foundation of hard-earned trust between China and the US," said Chinese Foreign Minister Wang Yi.

Speaking at a symposium on international affairs in Beijing, Wang said that Washington was "suppressing" China across a number of fields, including the economy, trade and technology.

The US has "deliberately attacked and discredited China on issues of national sovereignty and dignity," he added.

Last month, Washington drew the ire of the Chinese government by enacting a law supporting pro-democracy protests in Hong Kong, where six months of increasingly violent demonstrations have rocked the semi-autonomous financial hub.

It is the starkest challenge the city has presented to Beijing since its 1997 handover from Britain, which guaranteed freedoms unseen on the mainland -- rights that activists say are being eroded.&nbsp;

In retaliation, China last week imposed sanctions on US-based NGOs in the financial centre and suspended future visits by US warships to the semi-autonomous territory.

Beijing has also threatened even more punitive action pending the enactment of a Uighur rights bill in the US, which could sanction officials behind the mass detention of mostly Muslim ethnic minorities in Xinjiang.

On the trade war front, President Donald Trump tweeted Thursday that the two countries were "very close" to finalising a deal to de-escalate their dispute.

But Beijing declined to confirm a deal was imminent.

China's foreign minister on Friday accused the United States of "seriously" damaging trust between the two countries amid tensions over human rights in Xinjiang and protests in Hong Kong.

China's foreign minister on Friday accused the United States of "seriously" damaging trust between the two countries amid tensions over human rights in Xinjiang and protests in Hong Kong. The two countries have been locked in a trade dispute for almost two years, while rights issues in China's northwest region of Xinjiang and Hong Kong have further strained diplomatic relations. The United States has "seriously damaged the foundation of hard-earned trust between China and the US," said Chinese Foreign Minister Wang Yi. Speaking at a symposium on international affairs in Beijing, Wang said that Washington was "suppressing" China across a number of fields, including the economy, trade and technology. The US has "deliberately attacked and discredited China on issues of national sovereignty and dignity," he added. Last month, Washington drew the ire of the Chinese government by enacting a law supporting pro-democracy protests in Hong Kong, where six months of increasingly violent demonstrations have rocked the semi-autonomous financial hub. It is the starkest challenge the city has presented to Beijing since its 1997 handover from Britain, which guaranteed freedoms unseen on the mainland -- rights that activists say are being eroded. In retaliation, China last week imposed sanctions on US-based NGOs in the financial centre and suspended future visits by US warships to the semi-autonomous territory. Beijing has also threatened even more punitive action pending the enactment of a Uighur rights bill in the US, which could sanction officials behind the mass detention of mostly Muslim ethnic minorities in Xinjiang. On the trade war front, President Donald Trump tweeted Thursday that the two countries were "very close" to finalising a deal to de-escalate their dispute. But Beijing declined to confirm a deal was imminent.

China accuses US of 'seriously' damaging bilateral trust

World stocks hit a record high on Thursday, passing an all-time peak set in early 2018, on investor enthusiasm the United States and China were close to an initial deal to defuse a prolonged trade war.

Shares moved sharply higher after US President Donald Trump said in a tweet that the two countries were "getting VERY close to a BIG DEAL."

The MSCI all-country world index, which tracks shares in 49 countries, climbed to 551.84 points to surpass the previous record of 550.63 points set on Jan. 29, 2018.

The index has risen more than 20% this year, helped as well by a lowering of interest rates and injections of government stimulus around the world.

Oil prices also jumped as&nbsp;Brent crude rose $1.06 cents to $64.78 a barrel by 1502 GMT.

Oil prices had fallen IEA pointed to pressure on oil prices, predicting a sharp rise in global inventories despite an agreement by OPEC and its allies to deepen output cuts but Trump's tweet gave fresh impetus to the prices.

The US president's comments come as his administration gets ready to impose tariffs on almost $160 billion of Chinese imports such as video game consoles, computer monitors and toys on Sunday which could hit stock markets around the world.

Trump tweeted "Getting VERY close to a BIG DEAL with China. They want it, and so do we."

US and China have been locked in a trade war for the past one year with the Trump administration maintaining its tariff grip over Chinese products entering the US, China, in turn, has hit back with retaliatory tariffs.

In August, China said it would impose 5 per cent and 10 per cent in additional tariffs on $75 billion of US goods in two batches.

World stocks hit a record high on Thursday, passing an all-time peak set in early 2018, on investor enthusiasm the United States and China were close to an initial deal to defuse a prolonged trade war.

World stocks hit a record high on Thursday, passing an all-time peak set in early 2018, on investor enthusiasm the United States and China were close to an initial deal to defuse a prolonged trade war. Shares moved sharply higher after US President Donald Trump said in a tweet that the two countries were "getting VERY close to a BIG DEAL." The MSCI all-country world index, which tracks shares in 49 countries, climbed to 551.84 points to surpass the previous record of 550.63 points set on Jan. 29, 2018. The index has risen more than 20% this year, helped as well by a lowering of interest rates and injections of government stimulus around the world. Oil prices also jumped as Brent crude rose $1.06 cents to $64.78 a barrel by 1502 GMT. Oil prices had fallen IEA pointed to pressure on oil prices, predicting a sharp rise in global inventories despite an agreement by OPEC and its allies to deepen output cuts but Trump's tweet gave fresh impetus to the prices. The US president's comments come as his administration gets ready to impose tariffs on almost $160 billion of Chinese imports such as video game consoles, computer monitors and toys on Sunday which could hit stock markets around the world. Trump tweeted "Getting VERY close to a BIG DEAL with China. They want it, and so do we." US and China have been locked in a trade war for the past one year with the Trump administration maintaining its tariff grip over Chinese products entering the US, China, in turn, has hit back with retaliatory tariffs. In August, China said it would impose 5 per cent and 10 per cent in additional tariffs on $75 billion of US goods in two batches.

World stocks hit all time high after Trump tweets 'close to China deal'

<a href="https://www.wionews.com/business-economy/asian-stocks-stumble-china-us-trade-war-167374">Asian stocks</a> edged up on Monday, catching some of Wall Street's momentum after surprisingly strong US&nbsp;jobs data although regional gains were capped by concerns about China's economic slowdown due to the prolonged Sino-US&nbsp;trade war.

Japan's benchmark Nikkei added 0.4 per cent&nbsp;while MSCI's broadest index of Asia-Pacific shares outside Japan gained 0.3 per cent, with Australian stocks and South Korea's KOSPI up 0.4 per cent&nbsp;and 0.3 per cent, respectively.

China's Shanghai Composite stood flat and Hong Kong's Hang Seng rose 0.2 per cent.

Wall Street rose to near record highs on Friday on the strong jobs data and some signs of optimism about the <a href="https://www.wionews.com/opinions/us-china-trade-talks-free-trade-must-not-be-derailed-198923">US-China trade talks</a>, with the benchmark S&amp;P 500 closing within 0.2 per cent&nbsp;of its peak set in late November.

US&nbsp;job growth increased by the most in 10 months in November as the healthcare industry boosted hiring and production workers at General Motors returned to work after a strike, in the strongest sign that the world's largest economy is in no danger of stalling.

"This economy is still climbing and shattering the records for longevity," said Chris Rupkey, chief financial economist at MUFG Union Bank. "Right now, the clouds of recession still remain well offshore despite troubled economies elsewhere in the world and a trade war."

Top White House economic adviser Larry Kudlow said on Friday that a Dec. 15 deadline is still in place to impose a new round of US&nbsp;tariffs on Chinese consumer goods, but President Donald Trump likes where trade talks with China are going.

Still, investors think things could change if trade tensions escalate further, especially if Trump goes ahead with the planned tariffs on some $156 billion worth of products from China in mid-December.

The market has been largely working on the assumption that those tariffs, which cover several consumer products such as cellphones and toys, will be dropped or at least postponed, given that Washington and Beijing agreed in October to work on a trade deal.

Meanwhile, China's exports shrank for the fourth consecutive month in November, sending shivers through a market already concerned about damage being done to global demand by the trade war. But growth in imports was seen as a possible sign that Beijing's stimulus efforts over the last two years were helping to stir demand.

"Although the trade data did not have much impact, concerns about slowing growth and a lack of government stimulus are capping the Chinese shares' upside," said Naoki Tashiro, president of TS China Research.

"Yet chip-related shares are doing well, suggesting investors are still positive on the outlook of Sino-US&nbsp;trade talks overall."

US&nbsp;Treasury yields climbed on the strong employment report, with benchmark 10-year notes rising to 1.843 per cent.

The Federal Reserve's Open Market Committee (FOMC) kicks off its two-day policy meeting on Tuesday. The central bank is expected to highlight the economy's resilience and keep interest rates on hold in the range of 1.50&nbsp;per cent&nbsp;to 1.75 per cent.

Analysts said the much better-than-expected jobs report offset mixed signals from recent economic data and validated the Fed's wait-and-see stance on interest rates after three "insurance cuts" this year.

Oil prices retreated but hovered near recent peaks after OPEC and its allies agreed to deepen output cuts by 500,000 barrels per day in early 2020.

<a href="https://www.wionews.com/business-economy/crude-oil-prices-fall-1-on-fears-for-global-economy-233148">US&nbsp;West Texas Intermediate</a> (WTI) crude slipped 0.5&nbsp;per cent&nbsp;to $58.92 per barrel, still not far from Friday's 2-1/2-month high of $59.85 per barrel, while Brent futures were down 0.3 per cent&nbsp;at $64.21 per barrel.

In the currency market, the dollar maintained a firm tone on Monday, with the dollar index against a basket of major currencies standing at 97.715 and the euro changing hands at $1.1055, both little changed on the day.

Against the Japanese yen, the dollar was last traded at 108.60 yen, flat on the day.

Elsewhere, British pound traded at $1.3142, not far from a seven-month high of $1.3166 set on Thursday. Versus the euro, the currency hit a 2-1/2-year high of 84.07 pence per euro on Monday.

Sterling has been bolstered by expectations that Prime Minister Boris Johnson's Conservative Party will win an outright majority in the upcoming election on Thursday, thereby ending a hung parliament and political paralysis on Brexit.

Asian stocks edged up on Monday, catching some of Wall Street's momentum after surprisingly strong US jobs data although regional gains were capped by concerns about China's economic slowdown due to the prolonged Sino-US trade war.

Asian stocks edged up on Monday, catching some of Wall Street's momentum after surprisingly strong US jobs data although regional gains were capped by concerns about China's economic slowdown due to the prolonged Sino-US trade war. Japan's benchmark Nikkei added 0.4 per cent while MSCI's broadest index of Asia-Pacific shares outside Japan gained 0.3 per cent, with Australian stocks and South Korea's KOSPI up 0.4 per cent and 0.3 per cent, respectively. China's Shanghai Composite stood flat and Hong Kong's Hang Seng rose 0.2 per cent. Wall Street rose to near record highs on Friday on the strong jobs data and some signs of optimism about the US-China trade talks, with the benchmark S&P 500 closing within 0.2 per cent of its peak set in late November. US job growth increased by the most in 10 months in November as the healthcare industry boosted hiring and production workers at General Motors returned to work after a strike, in the strongest sign that the world's largest economy is in no danger of stalling. "This economy is still climbing and shattering the records for longevity," said Chris Rupkey, chief financial economist at MUFG Union Bank. "Right now, the clouds of recession still remain well offshore despite troubled economies elsewhere in the world and a trade war." Top White House economic adviser Larry Kudlow said on Friday that a Dec. 15 deadline is still in place to impose a new round of US tariffs on Chinese consumer goods, but President Donald Trump likes where trade talks with China are going. Still, investors think things could change if trade tensions escalate further, especially if Trump goes ahead with the planned tariffs on some $156 billion worth of products from China in mid-December. The market has been largely working on the assumption that those tariffs, which cover several consumer products such as cellphones and toys, will be dropped or at least postponed, given that Washington and Beijing agreed in October to work on a trade deal. Meanwhile, China's exports shrank for the fourth consecutive month in November, sending shivers through a market already concerned about damage being done to global demand by the trade war. But growth in imports was seen as a possible sign that Beijing's stimulus efforts over the last two years were helping to stir demand. "Although the trade data did not have much impact, concerns about slowing growth and a lack of government stimulus are capping the Chinese shares' upside," said Naoki Tashiro, president of TS China Research. "Yet chip-related shares are doing well, suggesting investors are still positive on the outlook of Sino-US trade talks overall." US Treasury yields climbed on the strong employment report, with benchmark 10-year notes rising to 1.843 per cent. The Federal Reserve's Open Market Committee (FOMC) kicks off its two-day policy meeting on Tuesday. The central bank is expected to highlight the economy's resilience and keep interest rates on hold in the range of 1.50 per cent to 1.75 per cent. Analysts said the much better-than-expected jobs report offset mixed signals from recent economic data and validated the Fed's wait-and-see stance on interest rates after three "insurance cuts" this year. Oil prices retreated but hovered near recent peaks after OPEC and its allies agreed to deepen output cuts by 500,000 barrels per day in early 2020. US West Texas Intermediate (WTI) crude slipped 0.5 per cent to $58.92 per barrel, still not far from Friday's 2-1/2-month high of $59.85 per barrel, while Brent futures were down 0.3 per cent at $64.21 per barrel. In the currency market, the dollar maintained a firm tone on Monday, with the dollar index against a basket of major currencies standing at 97.715 and the euro changing hands at $1.1055, both little changed on the day. Against the Japanese yen, the dollar was last traded at 108.60 yen, flat on the day. Elsewhere, British pound traded at $1.3142, not far from a seven-month high of $1.3166 set on Thursday. Versus the euro, the currency hit a 2-1/2-year high of 84.07 pence per euro on Monday. Sterling has been bolstered by expectations that Prime Minister Boris Johnson's Conservative Party will win an outright majority in the upcoming election on Thursday, thereby ending a hung parliament and political paralysis on Brexit.

Asian shares buoyed by Wall St rally, but China worry caps gains

Top White House economic adviser Larry Kudlow said on Friday that a December&nbsp;15 deadline is still in place to impose a new round of US tariffs on Chinese consumer goods, but President Donald Trump likes where trade talks with China are going.

With about a week to go before the deadline amid "intense" negotiations, Kudlow said Trump would make the final decision on the import tariffs, which would hit Chinese-made cellphones, laptop computers, toys and clothing.

"There's no arbitrary deadline here ... but that fact remains December 15 is a very important date with respect to a no-go or go-on tariffs," Kudlow, the director of White House's National Economic Council, told CNBC. "It's going to be totally up to POTUS (the US president). But December 15th is an important date."

China earlier on Friday said it will waive import tariffs for some soybeans and pork shipments from the United States, contributing to a more positive tone in financial market sentiment about the talks.

Kudlow, speaking to reporters at the White House, described the waivers as "good mood music" for the negotiations between the world's two largest economies.

Washington and Beijing are trying to reach agreement on a 'phase one' trade deal that would cool a 17-month trade war that has roiled financial markets, disrupted supply chains and weighed on global economic growth.

China has demanded that some of the existing US tariffs imposed on about $375 billion worth of its exports be removed, in addition to cancellation of the Dec. 15 tariffs on some $156 billion of its remaining exports to the United States.

Trump has demanded that China commit to specific minimum purchases of US agricultural products, among other concessions on intellectual property rights, currency and access to China's financial services markets.

"We've all learned that if he is not satisfied with these talks ... then he would not hesitate to increase tariffs," Kudlow told Bloomberg Television.

Kudlow said the two sides have talked almost daily, but there are currently no plans for in-person talks or a signing ceremony between Trump and Chinese President Xi Jinping.

"None of those decisions have been made ... let's get a deal first and then we'll figure out how, when and where they'll do the signing."

Trump struck an upbeat tone on Thursday even after Chinese officials reiterated their stance that existing tariffs must come off as part of an interim deal to de-escalate the US-China trade war.

Financial markets have been bouncing up and down for weeks on shifts in rhetoric about the trade negotiations. On Friday, the mood was positive, helped by a strong jobs report and the more positive tone from Trump.

At midday, the major US stock indexes were all up around 1%, nearing the record highs they touched last week.

Top White House economic adviser Larry Kudlow said on Friday that a December 15 deadline is still in place to impose a new round of US tariffs on Chinese consumer goods, but President Donald Trump likes where trade talks with China are going.

Top White House economic adviser Larry Kudlow said on Friday that a December 15 deadline is still in place to impose a new round of US tariffs on Chinese consumer goods, but President Donald Trump likes where trade talks with China are going. With about a week to go before the deadline amid "intense" negotiations, Kudlow said Trump would make the final decision on the import tariffs, which would hit Chinese-made cellphones, laptop computers, toys and clothing. "There's no arbitrary deadline here ... but that fact remains December 15 is a very important date with respect to a no-go or go-on tariffs," Kudlow, the director of White House's National Economic Council, told CNBC. "It's going to be totally up to POTUS (the US president). But December 15th is an important date." China earlier on Friday said it will waive import tariffs for some soybeans and pork shipments from the United States, contributing to a more positive tone in financial market sentiment about the talks. Kudlow, speaking to reporters at the White House, described the waivers as "good mood music" for the negotiations between the world's two largest economies. Washington and Beijing are trying to reach agreement on a 'phase one' trade deal that would cool a 17-month trade war that has roiled financial markets, disrupted supply chains and weighed on global economic growth. China has demanded that some of the existing US tariffs imposed on about $375 billion worth of its exports be removed, in addition to cancellation of the Dec. 15 tariffs on some $156 billion of its remaining exports to the United States. Trump has demanded that China commit to specific minimum purchases of US agricultural products, among other concessions on intellectual property rights, currency and access to China's financial services markets. "We've all learned that if he is not satisfied with these talks ... then he would not hesitate to increase tariffs," Kudlow told Bloomberg Television. Kudlow said the two sides have talked almost daily, but there are currently no plans for in-person talks or a signing ceremony between Trump and Chinese President Xi Jinping. "None of those decisions have been made ... let's get a deal first and then we'll figure out how, when and where they'll do the signing." Trump struck an upbeat tone on Thursday even after Chinese officials reiterated their stance that existing tariffs must come off as part of an interim deal to de-escalate the US-China trade war. Financial markets have been bouncing up and down for weeks on shifts in rhetoric about the trade negotiations. On Friday, the mood was positive, helped by a strong jobs report and the more positive tone from Trump. At midday, the major US stock indexes were all up around 1%, nearing the record highs they touched last week.

Trump will make final call on China tariffs, likes direction of talks: Larry Kudlow

China's exports in November shrank for the fourth consecutive month, underscoring persistent pressures on manufacturers from the Sino-U.S. war but growth in imports may be a sign that Beijing's stimulus steps are helping to stoke demand.

The 17-month long trade dispute has heightened the risks of a global recession and fuelled speculation that China's policymakers could unleash more stimulus as growth in the world's second-largest economy cooled to nearly 30-year lows.

Overseas shipments fell 1.1% from a year earlier last month, customs data showed on Sunday, compared with a 1.0% expansion tipped by a Reuters poll of analysts and a 0.9% drop in October.

Imports unexpectedly rose 0.3% from a year earlier, marking the first year-on-year growth since April and compared with a 1.8% decline forecast by economists.

The better-than-expected import data may point to firming domestic demand after factory activity showed surprising signs of improvement recently, although analysts have noted the recovery could be difficult to sustain amid trade risks.

China's trade surplus for November stood at $38.73 billion, compared with an expected $46.30 billion surplus in the poll and a $42.81 billion surplus recorded in October.

Trade tensions

Beijing and Washington are negotiating a first phase trade deal aimed at de-escalating a trade dispute but they continue to wrangle over key details.

A US House bill targeting China's camps for ethnic Muslim minorities in Xinjiang and other bills supporting anti-government protesters in Hong Kong have have also angered Beijing, further clouding prospects for a deal.

US President Donald Trump said on Thursday trade talks with China are "moving right along," striking an upbeat tone even as Chinese officials held fast to their line that existing tariffs must come off as part of an interim deal. Earlier in the week, though, Trump rattled global markets when he said a deal might have to wait until after the 2020 election.

Top White House economic adviser Larry Kudlow said on Friday that a Dec. 15 deadline is still in place to impose a new round of US tariffs on some $156 billion of China's remaining exports to the United States, but the president likes where trade talks with China are going, he added.

One Chinese official told Reuters that China will implement its own tariffs as a countermeasure if the Dec. 15 tariffs go into place, which may dash any chance of a near-term trade deal.

Trump has demanded that China commit to specific minimum purchases of U.S. agricultural products, among other concessions on intellectual property rights, currency and access to China's financial services markets.

China's trade surplus with the United States for November stood at $24.60 billion, according to Reuters calculations based on customs data, easing from the previous month's surplus of $26.45 billion.

China confirmed on Friday that it will waive import tariffs for some soybeans and pork shipments from the United States.

Domestic demand

Imports of copper rose 12.1% on the previous month as an improvement in the manufacturing sector stoked higher demand for the red metal, customs data showed on Sunday.

China's official factory activity gauge returned to growth for the first time in seven months in November, with a private survey showing activity expanding at the quickest pace in almost three years.

But falling industrial profits and factory prices suggest persisting downward pressure on the sector.

Iron ore imports fell for a second straight month in November, pulled down by falling shipments from top miners in Australia and Brazil despite firm demand at mills.

Despite the growing strains on the economy, Beijing remains reluctant to implement major stimulus for fear of heightening financial risks given already high levels of debt.

Authorities have instead opted for more targeted measures such as incremental interest rate reductions and bringing forward 1 trillion yuan ($142.1 billion) of the 2020 local government special bonds quota to this year.

People's Bank of China Governor Yi Gang reiterated in a signed article published last week that China will not resort to quantitative easing and is committed to maintaining a prudent monetary policy.

China's exports in November shrank for the fourth consecutive month, underscoring persistent pressures on manufacturers from the Sino-U.S. war but growth in imports may be a sign that Beijing's stimulus steps are helping to stoke demand.

China's exports in November shrank for the fourth consecutive month, underscoring persistent pressures on manufacturers from the Sino-U.S. war but growth in imports may be a sign that Beijing's stimulus steps are helping to stoke demand. The 17-month long trade dispute has heightened the risks of a global recession and fuelled speculation that China's policymakers could unleash more stimulus as growth in the world's second-largest economy cooled to nearly 30-year lows. Overseas shipments fell 1.1% from a year earlier last month, customs data showed on Sunday, compared with a 1.0% expansion tipped by a Reuters poll of analysts and a 0.9% drop in October. Imports unexpectedly rose 0.3% from a year earlier, marking the first year-on-year growth since April and compared with a 1.8% decline forecast by economists. The better-than-expected import data may point to firming domestic demand after factory activity showed surprising signs of improvement recently, although analysts have noted the recovery could be difficult to sustain amid trade risks. China's trade surplus for November stood at $38.73 billion, compared with an expected $46.30 billion surplus in the poll and a $42.81 billion surplus recorded in October. Trade tensions Beijing and Washington are negotiating a first phase trade deal aimed at de-escalating a trade dispute but they continue to wrangle over key details. A US House bill targeting China's camps for ethnic Muslim minorities in Xinjiang and other bills supporting anti-government protesters in Hong Kong have have also angered Beijing, further clouding prospects for a deal. US President Donald Trump said on Thursday trade talks with China are "moving right along," striking an upbeat tone even as Chinese officials held fast to their line that existing tariffs must come off as part of an interim deal. Earlier in the week, though, Trump rattled global markets when he said a deal might have to wait until after the 2020 election. Top White House economic adviser Larry Kudlow said on Friday that a Dec. 15 deadline is still in place to impose a new round of US tariffs on some $156 billion of China's remaining exports to the United States, but the president likes where trade talks with China are going, he added. One Chinese official told Reuters that China will implement its own tariffs as a countermeasure if the Dec. 15 tariffs go into place, which may dash any chance of a near-term trade deal. Trump has demanded that China commit to specific minimum purchases of U.S. agricultural products, among other concessions on intellectual property rights, currency and access to China's financial services markets. China's trade surplus with the United States for November stood at $24.60 billion, according to Reuters calculations based on customs data, easing from the previous month's surplus of $26.45 billion. China confirmed on Friday that it will waive import tariffs for some soybeans and pork shipments from the United States. Domestic demand Imports of copper rose 12.1% on the previous month as an improvement in the manufacturing sector stoked higher demand for the red metal, customs data showed on Sunday. China's official factory activity gauge returned to growth for the first time in seven months in November, with a private survey showing activity expanding at the quickest pace in almost three years. But falling industrial profits and factory prices suggest persisting downward pressure on the sector. Iron ore imports fell for a second straight month in November, pulled down by falling shipments from top miners in Australia and Brazil despite firm demand at mills. Despite the growing strains on the economy, Beijing remains reluctant to implement major stimulus for fear of heightening financial risks given already high levels of debt. Authorities have instead opted for more targeted measures such as incremental interest rate reductions and bringing forward 1 trillion yuan ($142.1 billion) of the 2020 local government special bonds quota to this year. People's Bank of China Governor Yi Gang reiterated in a signed article published last week that China will not resort to quantitative easing and is committed to maintaining a prudent monetary policy.

China November exports fall, but import growth hints of recovering demand

White House economic adviser Larry Kudlow said on Friday that the December&nbsp;15 deadline is still in place for a new round of US&nbsp;tariffs set to kick in on Chinese goods, but President Donald Trump likes where trade talks with China are going.

"There’s no arbitrary deadline here ... but that fact remains December 15 is a very important date with respect to a no-go or go on tariffs," he told CNBC. "It's going to be totally up to POTUS. But December 15th is an important date."

Completion of a phase one deal between the world's two biggest economies had been initially expected in November, ahead of a new round of US&nbsp;tariffs set to kick in on December 15, covering about $156 billion of Chinese imports.

"The reality is constructive talks, almost daily talks, we are, in fact, close," Kudlow said.

He said later on Bloomberg Television that Trump basically likes what he sees in the current talks.

However, he added, the president is not yet ready to sign any deal with China.

White House economic adviser Larry Kudlow said on Friday that the December 15 deadline is still in place for a new round of US tariffs set to kick in on Chinese goods, but President Donald Trump likes where trade talks with China are going.

White House economic adviser Larry Kudlow said on Friday that the December 15 deadline is still in place for a new round of US tariffs set to kick in on Chinese goods, but President Donald Trump likes where trade talks with China are going. "There’s no arbitrary deadline here ... but that fact remains December 15 is a very important date with respect to a no-go or go on tariffs," he told CNBC. "It's going to be totally up to POTUS. But December 15th is an important date." Completion of a phase one deal between the world's two biggest economies had been initially expected in November, ahead of a new round of US tariffs set to kick in on December 15, covering about $156 billion of Chinese imports. "The reality is constructive talks, almost daily talks, we are, in fact, close," Kudlow said. He said later on Bloomberg Television that Trump basically likes what he sees in the current talks. However, he added, the president is not yet ready to sign any deal with China.

Kudlow reaffirms December 15 deadline, says US-China trade talks close

Factory activity in China unexpectedly returned to growth in November for the first time in seven months, as domestic demand picked up on Beijing's accelerated stimulus measures to steady growth.

But gains were slight, and export demand remained sluggish. More US&nbsp;tariffs are looming within weeks and Beijing and Washington are still haggling over the first phase of a trade deal.

With China's economic growth cooling to near 30-year lows and industrial profits shrinking, speculation is mounting that Beijing needs to roll out stimulus more quickly and more aggressively, even if it risks adding to a pile of debt.

The Purchasing Managers' Index (PMI) bounced back to 50.2 in November, its highest since March, China's National Bureau of Statistics (NBS) said on Saturday, above the 50-point mark that separates growth from contraction on a monthly basis.

The result compared with 49.3 in October. A Reuters poll showed analysts expected the November PMI to come in at 49.5.

The official factory gauge pointed to an improvement in China's vast manufacturing sector last month. Total new orders bounced back to expansionary territory with the sub-index rising to 51.3, the highest level seen since April.

That indicates domestic consumption firmed up after Beijing repeatedly urged local governments to kick stimulus up a gear to meet economic goals before year-end. Factory output also rose to 52.6 in November, marking the strongest pace since March.

"In the short term, we may have already passed the low point where the economy hit the bottom," Zhang Deli, a macro analyst with Lianxun Securities, wrote in a note.

Beijing has front-loaded 1 trillion yuan ($142 billion) of a 2020 local government special bonds quota to this year and has urged that they be issued and used as early as possible to boost infrastructure investment. Some analysts say that could be a sign that the government is worried about the downward economic pressure.

Zhang attributed to the better-than-expected November PMI to a government push on infrastructure investment, less property market control, and de-escalation in US-China trade tension in October, when both sides said they had substantially reached a "Phase 1" agreement and the United States delayed a tariff increase scheduled to take place on October 15.

Rising uncertainties

But recent developments underscore rising uncertainties in the trade conflict, which bodes ill for the outlook for external demand. New export orders fell for an 18th straight month in November, albeit at a slower pace, with the sub-index rising to 48.8 from 47.0 in October.

US President Donald Trump said this week that the world's largest economies are close to reaching agreement on the first phase deal. But trade experts and people close to the White House said it could slide into the new year, given China is pressing for more extensive tariff rollbacks.

An additional 15% in US tariffs are scheduled to take effect on about $156 billion of Chinese products on December&nbsp;15.

Trump has also highlighted Washington's support for protesters in Hong Kong, potentially a huge sore point for China.

The PMI survey also indicated factories continued to cut jobs in November despite slightly improved business confidence, while it signalled a further deterioration in profits for Chinese manufacturers, with output prices falling into a three-month low.

Beijing's drive to guide more bank lending towards small private firms appeared to be working. Their PMI index recorded the strongest gain in November, compared to medium-sized and large firms, but their performance was still the poorest of the three at 49.4.

Growth in China's services sector also quickened in November, while construction activity held up well, but growth in the latter slowed compared to the previous month, a separate statistics bureau survey showed.

The official non-manufacturing PMI picked up to 54.4, recovering from October's 52.8, the lowest point since February 2016.

A strong services sector has offered Beijing some cushioning effect as manufacturers face growing difficulties in securing demand both at home and abroad. However, the sector's resilience weakened late last year amid a broader economic slowdown.

Some analysts have also cast doubt over the prospects for robust growth in the construction sector.

"After all, we are still waiting for more definitive signs of a recovery in the credit cycle. Meanwhile, sentiment in the property market continues to cool down, which clouds the outlook of the sustainability of property investment growth," researchers from China International Capital Corporation (CICC) said in a note this week.

China's gross domestic product growth is expected to slow to a near three-decade low of 6.2% in 2019 and then hit 5.9% in 2020, according to a Reuters poll.

Factory activity in China unexpectedly returned to growth in November for the first time in seven months, as domestic demand picked up on Beijing's accelerated stimulus measures to steady growth.

Factory activity in China unexpectedly returned to growth in November for the first time in seven months, as domestic demand picked up on Beijing's accelerated stimulus measures to steady growth. But gains were slight, and export demand remained sluggish. More US tariffs are looming within weeks and Beijing and Washington are still haggling over the first phase of a trade deal. With China's economic growth cooling to near 30-year lows and industrial profits shrinking, speculation is mounting that Beijing needs to roll out stimulus more quickly and more aggressively, even if it risks adding to a pile of debt. The Purchasing Managers' Index (PMI) bounced back to 50.2 in November, its highest since March, China's National Bureau of Statistics (NBS) said on Saturday, above the 50-point mark that separates growth from contraction on a monthly basis. The result compared with 49.3 in October. A Reuters poll showed analysts expected the November PMI to come in at 49.5. The official factory gauge pointed to an improvement in China's vast manufacturing sector last month. Total new orders bounced back to expansionary territory with the sub-index rising to 51.3, the highest level seen since April. That indicates domestic consumption firmed up after Beijing repeatedly urged local governments to kick stimulus up a gear to meet economic goals before year-end. Factory output also rose to 52.6 in November, marking the strongest pace since March. "In the short term, we may have already passed the low point where the economy hit the bottom," Zhang Deli, a macro analyst with Lianxun Securities, wrote in a note. Beijing has front-loaded 1 trillion yuan ($142 billion) of a 2020 local government special bonds quota to this year and has urged that they be issued and used as early as possible to boost infrastructure investment. Some analysts say that could be a sign that the government is worried about the downward economic pressure. Zhang attributed to the better-than-expected November PMI to a government push on infrastructure investment, less property market control, and de-escalation in US-China trade tension in October, when both sides said they had substantially reached a "Phase 1" agreement and the United States delayed a tariff increase scheduled to take place on October 15. Rising uncertainties But recent developments underscore rising uncertainties in the trade conflict, which bodes ill for the outlook for external demand. New export orders fell for an 18th straight month in November, albeit at a slower pace, with the sub-index rising to 48.8 from 47.0 in October. US President Donald Trump said this week that the world's largest economies are close to reaching agreement on the first phase deal. But trade experts and people close to the White House said it could slide into the new year, given China is pressing for more extensive tariff rollbacks. An additional 15% in US tariffs are scheduled to take effect on about $156 billion of Chinese products on December 15. Trump has also highlighted Washington's support for protesters in Hong Kong, potentially a huge sore point for China. The PMI survey also indicated factories continued to cut jobs in November despite slightly improved business confidence, while it signalled a further deterioration in profits for Chinese manufacturers, with output prices falling into a three-month low. Beijing's drive to guide more bank lending towards small private firms appeared to be working. Their PMI index recorded the strongest gain in November, compared to medium-sized and large firms, but their performance was still the poorest of the three at 49.4. Growth in China's services sector also quickened in November, while construction activity held up well, but growth in the latter slowed compared to the previous month, a separate statistics bureau survey showed. The official non-manufacturing PMI picked up to 54.4, recovering from October's 52.8, the lowest point since February 2016. A strong services sector has offered Beijing some cushioning effect as manufacturers face growing difficulties in securing demand both at home and abroad. However, the sector's resilience weakened late last year amid a broader economic slowdown. Some analysts have also cast doubt over the prospects for robust growth in the construction sector. "After all, we are still waiting for more definitive signs of a recovery in the credit cycle. Meanwhile, sentiment in the property market continues to cool down, which clouds the outlook of the sustainability of property investment growth," researchers from China International Capital Corporation (CICC) said in a note this week. China's gross domestic product growth is expected to slow to a near three-decade low of 6.2% in 2019 and then hit 5.9% in 2020, according to a Reuters poll.

China's factory activity unexpectedly returns to growth in November

US stocks slipped on Friday in a post-holiday shortened session as a US-China discord over Hong Kong reignited trade tensions and retail stocks dipped on signs of a tepid start to in-store Black Friday sales.

China on Thursday threatened to retaliate against a US law backing pro-democracy protesters in Hong Kong. The measures could include barring drafters of the legislation from mainland China, Hong Kong and Macau, the editor of China's state-backed Global Times tabloid said in a tweet.

The trade-sensitive Philadelphia Semiconductor index fell as much as 0.8 per cent and was on track for its worst day in a week.

The diplomatic clash also knocked Wall Street's main indexes off record highs. They had closed at all-time highs in every session so far this week on upbeat domestic data and hopes of an imminent "phase one" trade deal.

"The fact that this is a half-day with the markets being at all-time highs is a reason to give investors a bit of a pause," said Robert Pavlik, chief investment strategist, at SlateStone Wealth LLC in New York.

The sentiment was also dulled by reports of spot checks on retailers around the country, which showed fewer people lining up outside stores at the start of Black Friday, suggesting a surge in online buying may have taken the shine off America's biggest shopping day.

The S&amp;P 500 retail sector fell 0.7 per cent, with Kohl's Corp dropping 2.3 per cent. But top retailers Walmart Inc and Best Buy Co Inc were up between 0.3% and 0.7%.

At 11:48 a.m. ET the Dow Jones Industrial Average was down 95.45 points, or 0.34 per cent, at 28,068.55, while the S&amp;P 500 was down 8.63 points, or 0.27per cent, at 3,145. The Nasdaq Composite was down 21.73 points, or 0.25%, at 8,683.45.

Shares of Tech Data Corp jumped 12.3 per cent&nbsp;as private equity firm Apollo Global Management raised its bid for the US information technology equipment distributor to about $5.14 billion.

Declining issues outnumbered advancers for a 1.58-to-1 ratio on the NYSE and for a 1.18-to-1 ratio on the Nasdaq. The S&amp;P index recorded 15 new 52-week highs and one new low, while the Nasdaq recorded 66 new highs and 26 new lows.

US stocks slipped on Friday in a post-holiday shortened session as a US-China discord over Hong Kong reignited trade tensions and retail stocks dipped on signs of a tepid start to in-store Black Friday sales.

US stocks slipped on Friday in a post-holiday shortened session as a US-China discord over Hong Kong reignited trade tensions and retail stocks dipped on signs of a tepid start to in-store Black Friday sales. China on Thursday threatened to retaliate against a US law backing pro-democracy protesters in Hong Kong. The measures could include barring drafters of the legislation from mainland China, Hong Kong and Macau, the editor of China's state-backed Global Times tabloid said in a tweet. The trade-sensitive Philadelphia Semiconductor index fell as much as 0.8 per cent and was on track for its worst day in a week. The diplomatic clash also knocked Wall Street's main indexes off record highs. They had closed at all-time highs in every session so far this week on upbeat domestic data and hopes of an imminent "phase one" trade deal. "The fact that this is a half-day with the markets being at all-time highs is a reason to give investors a bit of a pause," said Robert Pavlik, chief investment strategist, at SlateStone Wealth LLC in New York. The sentiment was also dulled by reports of spot checks on retailers around the country, which showed fewer people lining up outside stores at the start of Black Friday, suggesting a surge in online buying may have taken the shine off America's biggest shopping day. The S&P 500 retail sector fell 0.7 per cent, with Kohl's Corp dropping 2.3 per cent. But top retailers Walmart Inc and Best Buy Co Inc were up between 0.3% and 0.7%. At 11:48 a.m. ET the Dow Jones Industrial Average was down 95.45 points, or 0.34 per cent, at 28,068.55, while the S&P 500 was down 8.63 points, or 0.27per cent, at 3,145. The Nasdaq Composite was down 21.73 points, or 0.25%, at 8,683.45. Shares of Tech Data Corp jumped 12.3 per cent as private equity firm Apollo Global Management raised its bid for the US information technology equipment distributor to about $5.14 billion. Declining issues outnumbered advancers for a 1.58-to-1 ratio on the NYSE and for a 1.18-to-1 ratio on the Nasdaq. The S&P index recorded 15 new 52-week highs and one new low, while the Nasdaq recorded 66 new highs and 26 new lows.

Wall Street slips as US law on Hong Kong brings back trade fears

US and China clash over Hong Kong in the midst of trade talks. Watch video to know more.

US and China clash over Hong Kong in the midst of trade talks

By Rodrigo Olivares-Caminal

Moody’s, one of the big three credit rating agencies, is not upbeat about the prospects for the world’s debt in 2020 – to put it mildly. If we were to try to capture the agency’s view of where we are heading on a palette of colours, we would be pointing at black – pitch black.

Moody’s rates the creditworthiness of 142 countries, which represent about $62.2 trillion (£48 trillion) of debt. It sees a disruptive political environment both within various countries and at the international level.

This, it says, is aggravating the slow-motion stagnation of global GDP growth that has been a problem since the financial crisis of 2008-09. Together, these difficulties have the potential to worsen the effects of unresolved structural issues in different countries, such as fast-ageing populations, income inequality, poor competitiveness, low currency reserves and poor policies for managing sovereign debt. The net result could be sovereign debt defaults that could trigger new economic and financial shocks and lead to serious instability in the months ahead.

As a professor of banking and finance law, I broadly agree with this prognosis. So where are the most serious flashpoints, and what can politicians and civil servants do to minimise the risks?

Welcome to the cauldron 
 
Unfortunately, the world is sitting on a sovereign debt timebomb that could be triggered at any time by the smallest event. This is confirmed by the IMF’s data, which identifies 32 countries as being at high risk of unsustainable debt. Their borrowings have more than tripled in just two years. We have to remember how serious the consequences can be when a country’s finances spiral out of control: take Venezuela, which is facing a humanitarian crisis with projected inflation of 10,000,000 per cent&nbsp;by the end of this year.

Moody’s argues convincingly that the main drivers of the problems threatening to tip these high debt levels into crisis are twofold: the recent disruption to world trade and the weakening of global and national institutions. World trade in goods is heading for its worst year since 2009, mainly driven by the geopolitical tensions resulting from the trade war between the US and China, and to a lesser extent the Brexit uncertainty in Europe.

The US-China standoff has affected trade volumes between the two superpowers. It has also meant that countries which play an important role in the global supply chain, such as Belgium, the Czech Republic, Ireland, Malaysia, Singapore and Vietnam, will face a slowdown in their economic activity.

Beyond this are indirect consequences that could kick off a crisis: confidence is reducing across the board, and short and medium-term growth is projected to slow down. This threatens to reduce foreign direct investment and capital flows into many countries – Moody’s argues this is already evident in the Asia-Pacific region.

The same thing looks likely to happen to those countries with large account deficits who are more reliant on overseas capital, such as Argentina, Lebanon, Mongolia, Pakistan, Sri Lanka, Tunisia, Turkey and to a lesser extent Indonesia. Capital flight will send their currencies plummeting and make their dollar-denominated debts even more unsustainable, raising the prospect of political strife and contagion.

The division bell

Nationalism and populism are ascendant across the world, undermining the effectiveness of domestic, regional and global policy now that the era of centrist political consensus has ended. As Moody’s notes, this lack of international cohesion has made it harder for institutions, such as the World Trade Organisation and G20, to help coordinate policy responses to economic difficulties.

It doesn’t help that there is also a large amount of bilateral antagonism at present – not only US/China and UK/EU, but also Japan and Korea, China and Japan, North Korea and the US, India and Pakistan, Russia and Ukraine and the ever-present tensions in the Gulf.

In this climate, populist movements are turning the growing anger over rising income inequality to their advantage, as we have seen in the likes of Argentina, Ecuador, Mexico and particularly Chile. Other countries facing similar issues include Ethiopia, Iraq, Lebanon and Tunisia.

In response, governments are being forced to shift their policies. For example, Argentina’s government had to reinstate price controls, which was one of its most criticised policies. Any quick populist fix may quiet discontent, but it doesn’t address structural challenges and only serves to highlight weak governments.

This is not just restricted to emerging markets: Moody’s also recently changed the outlook of the UK to negative, amid the uncertainty surrounding Brexit and the log-jammed parliament. Similarly in the US, the ongoing impeachment process against President Trump and political polarisation are distracting policymakers from more essential and pressing matters – not least the sluggish economy. A ratings downgrade cannot be ruled out entirely.

This should all serve as a wake-up call to other countries with longstanding unresolved structural challenges. Sri Lanka, for example, has large account deficits that cannot be reduced, while India’s credit outlook has also been downgraded to negative because its government’s economic policies have been ineffective at producing growth. Many countries, meanwhile, need to do more to address other challenges, such as robotisation and the emergence of AI, or simply reform fatigue.

Put this all together and it looks like a very toxic mix. Countries need to recognise their mutual interest in avoiding a full-blown debt crisis. They need to try to overcome their differences and embrace a cohesive approach towards development and tackling the debt problem.

It may even be too late. There are some parts of the world, such as Africa, where debt is already getting very close to a regional crisis. Latin America and the Caribbean are also at risk, although some countries are already restructuring their debts.

At any rate, the international community must do what it can before time runs out. For the future, there are two vital lessons: Countries need to tackle their structural issues early, and borrowing must be used for investment and not simply to finance budget deficits. If the world can make genuine progress on these fronts, situations like this can hopefully be avoided in the future. 
 
(Rodrigo Olivares-Caminal is Professor of Banking and Finance Law, Queen Mary University of London)

(This article was originally published on The Conversation. Read the <a href="https://theconversation.com/buckle-up-for-turbulence-why-a-global-debt-crisis-looks-very-hard-to-avoid-127260">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 Rodrigo Olivares-Caminal Moody’s, one of the big three credit rating agencies, is not upbeat about the prospects for the world’s debt in 2020 – to put it mildly.

By Rodrigo Olivares-Caminal Moody’s, one of the big three credit rating agencies, is not upbeat about the prospects for the world’s debt in 2020 – to put it mildly. If we were to try to capture the agency’s view of where we are heading on a palette of colours, we would be pointing at black – pitch black. Moody’s rates the creditworthiness of 142 countries, which represent about $62.2 trillion (£48 trillion) of debt. It sees a disruptive political environment both within various countries and at the international level. This, it says, is aggravating the slow-motion stagnation of global GDP growth that has been a problem since the financial crisis of 2008-09. Together, these difficulties have the potential to worsen the effects of unresolved structural issues in different countries, such as fast-ageing populations, income inequality, poor competitiveness, low currency reserves and poor policies for managing sovereign debt. The net result could be sovereign debt defaults that could trigger new economic and financial shocks and lead to serious instability in the months ahead. As a professor of banking and finance law, I broadly agree with this prognosis. So where are the most serious flashpoints, and what can politicians and civil servants do to minimise the risks? Welcome to the cauldron Unfortunately, the world is sitting on a sovereign debt timebomb that could be triggered at any time by the smallest event. This is confirmed by the IMF’s data, which identifies 32 countries as being at high risk of unsustainable debt. Their borrowings have more than tripled in just two years. We have to remember how serious the consequences can be when a country’s finances spiral out of control: take Venezuela, which is facing a humanitarian crisis with projected inflation of 10,000,000 per cent by the end of this year. Moody’s argues convincingly that the main drivers of the problems threatening to tip these high debt levels into crisis are twofold: the recent disruption to world trade and the weakening of global and national institutions. World trade in goods is heading for its worst year since 2009, mainly driven by the geopolitical tensions resulting from the trade war between the US and China, and to a lesser extent the Brexit uncertainty in Europe. The US-China standoff has affected trade volumes between the two superpowers. It has also meant that countries which play an important role in the global supply chain, such as Belgium, the Czech Republic, Ireland, Malaysia, Singapore and Vietnam, will face a slowdown in their economic activity. Beyond this are indirect consequences that could kick off a crisis: confidence is reducing across the board, and short and medium-term growth is projected to slow down. This threatens to reduce foreign direct investment and capital flows into many countries – Moody’s argues this is already evident in the Asia-Pacific region. The same thing looks likely to happen to those countries with large account deficits who are more reliant on overseas capital, such as Argentina, Lebanon, Mongolia, Pakistan, Sri Lanka, Tunisia, Turkey and to a lesser extent Indonesia. Capital flight will send their currencies plummeting and make their dollar-denominated debts even more unsustainable, raising the prospect of political strife and contagion. The division bell Nationalism and populism are ascendant across the world, undermining the effectiveness of domestic, regional and global policy now that the era of centrist political consensus has ended. As Moody’s notes, this lack of international cohesion has made it harder for institutions, such as the World Trade Organisation and G20, to help coordinate policy responses to economic difficulties. It doesn’t help that there is also a large amount of bilateral antagonism at present – not only US/China and UK/EU, but also Japan and Korea, China and Japan, North Korea and the US, India and Pakistan, Russia and Ukraine and the ever-present tensions in the Gulf. In this climate, populist movements are turning the growing anger over rising income inequality to their advantage, as we have seen in the likes of Argentina, Ecuador, Mexico and particularly Chile. Other countries facing similar issues include Ethiopia, Iraq, Lebanon and Tunisia. In response, governments are being forced to shift their policies. For example, Argentina’s government had to reinstate price controls, which was one of its most criticised policies. Any quick populist fix may quiet discontent, but it doesn’t address structural challenges and only serves to highlight weak governments. This is not just restricted to emerging markets: Moody’s also recently changed the outlook of the UK to negative, amid the uncertainty surrounding Brexit and the log-jammed parliament. Similarly in the US, the ongoing impeachment process against President Trump and political polarisation are distracting policymakers from more essential and pressing matters – not least the sluggish economy. A ratings downgrade cannot be ruled out entirely. This should all serve as a wake-up call to other countries with longstanding unresolved structural challenges. Sri Lanka, for example, has large account deficits that cannot be reduced, while India’s credit outlook has also been downgraded to negative because its government’s economic policies have been ineffective at producing growth. Many countries, meanwhile, need to do more to address other challenges, such as robotisation and the emergence of AI, or simply reform fatigue. Put this all together and it looks like a very toxic mix. Countries need to recognise their mutual interest in avoiding a full-blown debt crisis. They need to try to overcome their differences and embrace a cohesive approach towards development and tackling the debt problem. It may even be too late. There are some parts of the world, such as Africa, where debt is already getting very close to a regional crisis. Latin America and the Caribbean are also at risk, although some countries are already restructuring their debts. At any rate, the international community must do what it can before time runs out. For the future, there are two vital lessons: Countries need to tackle their structural issues early, and borrowing must be used for investment and not simply to finance budget deficits. If the world can make genuine progress on these fronts, situations like this can hopefully be avoided in the future. (Rodrigo Olivares-Caminal is Professor of Banking and Finance Law, Queen Mary University of London) (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 a global debt crisis looks very hard to avoid

Top US and Chinese trade negotiators will talk again on Friday, China said, as uncertainty swirls over the cancellation of the APEC summit where leaders of the two countries had been expected to meet.

US President Donald Trump said Monday that he expected a "phase one" trade deal with Beijing to be signed on the sidelines of the November summit in Chile, after an 18-month trade impasse between the two economic giants.

But Chile's President Sebastian Pinera announced Wednesday that his country could no longer host the event, due to violent unrest in the city.

"Negotiating teams on the Chinese and US sides have continued to maintain close communication, and negotiations are currently making smooth progress," the Chinese commerce ministry said in a statement Thursday.

"The two sides will continue to push forward negotiations and other work according to the original plan," the ministry said, adding that leaders from both sides will hold another call Friday, a week after senior officials last spoke over the phone.

The White House said later on Wednesday that Trump still hopes to sign a trade deal with his Chinese counterpart Xi Jinping in coming weeks.&nbsp;

China and the US have exchanged blows for over a year, with tariffs now impacting hundreds of billions of dollars in two-way trade.

Now with the 2020 presidential election approaching, and Trump under pressure from the impeachment inquiry in Congress, US trade officials have focused on getting a partial deal in the books.

China's Commerce Ministry said on October 26 that both sides had agreed to "properly address each other's core concerns."

Top US and Chinese trade negotiators will talk again on Friday, China said, as uncertainty swirls over the cancellation of the APEC summit where leaders of the two countries had been expected to meet.

Top US and Chinese trade negotiators will talk again on Friday, China said, as uncertainty swirls over the cancellation of the APEC summit where leaders of the two countries had been expected to meet. US President Donald Trump said Monday that he expected a "phase one" trade deal with Beijing to be signed on the sidelines of the November summit in Chile, after an 18-month trade impasse between the two economic giants. But Chile's President Sebastian Pinera announced Wednesday that his country could no longer host the event, due to violent unrest in the city. "Negotiating teams on the Chinese and US sides have continued to maintain close communication, and negotiations are currently making smooth progress," the Chinese commerce ministry said in a statement Thursday. "The two sides will continue to push forward negotiations and other work according to the original plan," the ministry said, adding that leaders from both sides will hold another call Friday, a week after senior officials last spoke over the phone. The White House said later on Wednesday that Trump still hopes to sign a trade deal with his Chinese counterpart Xi Jinping in coming weeks. China and the US have exchanged blows for over a year, with tariffs now impacting hundreds of billions of dollars in two-way trade. Now with the 2020 presidential election approaching, and Trump under pressure from the impeachment inquiry in Congress, US trade officials have focused on getting a partial deal in the books. China's Commerce Ministry said on October 26 that both sides had agreed to "properly address each other's core concerns."

US, China top trade negotiators to talk again on Friday

China is seeking $2.4 billion in retaliatory sanctions against the United States for non-compliance with a WTO ruling in a tariffs' case dating to the Obama era, a document published on Monday showed.

WTO appeals judges said in July that the United States did not fully comply with a WTO ruling and could face Chinese sanctions if it does not remove certain tariffs that break the watchdog's rules.

China, in its request posted by WTO, said: "In response to the United States' continued non-compliance with the (WTO Dispute Settlement Body's) recommendations and rulings, China requests authorization from the DSB to suspend concessions and related obligations at an annual amount of $2.4 billion."

The United States had failed to comply with the DSB recommendations and rulings within the specified period, and no agreement on compensation had been reached, it said.

China went to the WTO in 2012 to challenge US&nbsp;anti-subsidy tariffs on Chinese exports including solar panels, wind towers, steel cylinders, and aluminum extrusions, exports that China valued at $7.3 billion at the time.

The duties were imposed as the result of 17 investigations begun by the US&nbsp;Department of Commerce between 2007 and 2012.

China's request appears on the agenda of the DSB set for October 28. The United States could challenge the amount of retaliatory sanctions sought, which could send the long-running dispute to arbitration.

The office of US&nbsp;Trade Representative (USTR) Robert Lighthizer has said the WTO ruling recognized that the United States had proved that China used state-owned enterprises (SOEs) to subsidize and distort its economy.

But the ruling also said the United States must accept Chinese prices to measure subsidies, even though USTR viewed those prices as "distorted".

China and the Trump administration are locked in a tit-for-tat trade war. White House economic adviser Larry Kudlow said on Thursday that China's "serious commitment" to buy up to $50 billion worth of US&nbsp;agricultural goods as part of a phase 1 trade deal would depend in part on private companies and market conditions.

US&nbsp;President Donald Trump said on Friday he thinks a trade deal between the world's two largest economies will be signed by the time the Asia-Pacific Economic Cooperation meetings take place in Chile on November 16 and 17.

China is seeking $2.4 billion in retaliatory sanctions against the United States for non-compliance with a WTO ruling in a tariffs' case dating to the Obama era, a document published on Monday showed.

China is seeking $2.4 billion in retaliatory sanctions against the United States for non-compliance with a WTO ruling in a tariffs' case dating to the Obama era, a document published on Monday showed. WTO appeals judges said in July that the United States did not fully comply with a WTO ruling and could face Chinese sanctions if it does not remove certain tariffs that break the watchdog's rules. China, in its request posted by WTO, said: "In response to the United States' continued non-compliance with the (WTO Dispute Settlement Body's) recommendations and rulings, China requests authorization from the DSB to suspend concessions and related obligations at an annual amount of $2.4 billion." The United States had failed to comply with the DSB recommendations and rulings within the specified period, and no agreement on compensation had been reached, it said. China went to the WTO in 2012 to challenge US anti-subsidy tariffs on Chinese exports including solar panels, wind towers, steel cylinders, and aluminum extrusions, exports that China valued at $7.3 billion at the time. The duties were imposed as the result of 17 investigations begun by the US Department of Commerce between 2007 and 2012. China's request appears on the agenda of the DSB set for October 28. The United States could challenge the amount of retaliatory sanctions sought, which could send the long-running dispute to arbitration. The office of US Trade Representative (USTR) Robert Lighthizer has said the WTO ruling recognized that the United States had proved that China used state-owned enterprises (SOEs) to subsidize and distort its economy. But the ruling also said the United States must accept Chinese prices to measure subsidies, even though USTR viewed those prices as "distorted". China and the Trump administration are locked in a tit-for-tat trade war. White House economic adviser Larry Kudlow said on Thursday that China's "serious commitment" to buy up to $50 billion worth of US agricultural goods as part of a phase 1 trade deal would depend in part on private companies and market conditions. US President Donald Trump said on Friday he thinks a trade deal between the world's two largest economies will be signed by the time the Asia-Pacific Economic Cooperation meetings take place in Chile on November 16 and 17.

China seeks $2.4 billion in sanctions against US in Obama-era case - WTO

US&nbsp;President Donald Trump on Friday said he thinks a trade deal between the United States and China will be signed by the time the Asia-Pacific Economic Cooperation meetings take place in Chile on November&nbsp;16 and 17.

Chinese Vice Premier Liu He will provide Beijing's perspective on the progress of the talks in a speech on Saturday, according to a tweet&nbsp;from the editor-in-chief of the Global Times, a tabloid published by the People's Daily of China's ruling Communist Party.

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Based on what I know, Chinese Vice Premier Liu He will make authoritative interpretation on progress of China-US trade talks from China's perspective in his speech at the 2019 World Conference on VR Industry today.
— Hu Xijin 胡锡进 (@HuXijin_GT) <a href="https://twitter.com/HuXijin_GT/status/1185330748183601152?ref_src=twsrc%5Etfw">October 18, 2019</a></blockquote>
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"I think it will get&nbsp;signed&nbsp;quite easily, hopefully by the summit in Chile, where President Xi and I will both be,"&nbsp;Trump&nbsp;told reporters at the White House, without providing details.

"We're working with&nbsp;China&nbsp;very well,"&nbsp;Trump&nbsp;also said.

The White House has announced that&nbsp;China&nbsp;agreed to buy up to $50 billion&nbsp;of&nbsp;US&nbsp;farm products annually, as part of the first phase of a&nbsp;trade&nbsp;deal, although&nbsp;China&nbsp;seems slow to follow through.

The so-called phase 1&nbsp;deal&nbsp;was unveiled at the White House last week during a visit by vice-premier He as part of a bid to end a tit-for-tat&nbsp;trade&nbsp;war between Beijing and Washington that has roiled markets and hammered global growth.&nbsp;US&nbsp;officials said the second phase of negotiations could address thornier issues&nbsp;like forced technology transfer and non-financial services issues.

US President Donald Trump on Friday said he thinks a trade deal between the United States and China will be signed by the time the Asia-Pacific Economic Cooperation meetings take place in Chile on November 16 and 17.

US President Donald Trump on Friday said he thinks a trade deal between the United States and China will be signed by the time the Asia-Pacific Economic Cooperation meetings take place in Chile on November 16 and 17. Chinese Vice Premier Liu He will provide Beijing's perspective on the progress of the talks in a speech on Saturday, according to a tweet from the editor-in-chief of the Global Times, a tabloid published by the People's Daily of China's ruling Communist Party. Based on what I know, Chinese Vice Premier Liu He will make authoritative interpretation on progress of China-US trade talks from China's perspective in his speech at the 2019 World Conference on VR Industry today. — Hu Xijin 胡锡进 (@HuXijin_GT) October 18, 2019 × "I think it will get signed quite easily, hopefully by the summit in Chile, where President Xi and I will both be," Trump told reporters at the White House, without providing details. "We're working with China very well," Trump also said. The White House has announced that China agreed to buy up to $50 billion of US farm products annually, as part of the first phase of a trade deal, although China seems slow to follow through. The so-called phase 1 deal was unveiled at the White House last week during a visit by vice-premier He as part of a bid to end a tit-for-tat trade war between Beijing and Washington that has roiled markets and hammered global growth. US officials said the second phase of negotiations could address thornier issues like forced technology transfer and non-financial services issues.

Trump hopes US-China trade deal will be signed by middle of November

European and US stock markets rebounded Wednesday, helped by reports that China would accept a partial <a href="https://www.wionews.com/world/us-china-trade-talks-to-resume-thursday-white-house-254346">trade deal with the US</a> in key talks this week.

The dollar was mixed while the pound steadied after yet more Brexit-fuelled volatility.

Crude oil prices, which had rallied over one per cent as <a href="https://www.wionews.com/world/turkeys-military-operation-in-syria-what-does-ankara-wants-255040">Turkey launched an offensive against Kurdish</a> militants in northern Syria, trimmed gains after data showed US oil output at record levels and stocks rising.

China remains open to a limited trade deal as long as US President Donald Trump imposes no more tariffs, Bloomberg News and the Financial Times reported, citing people close to the upcoming talks.

In return, Beijing would offer non-core concessions such as purchases of US agricultural products, the reports added.

"This is likely contributing to the gains we're seeing in Europe... but unless the US is also willing to accept a limited deal -- and nothing currently suggests they are -- it may not lead to anything," noted Craig Erlam, senior market analyst at Oanda trading group.&nbsp;

"Traders are jumping at the prospect of good news at the moment but there's been so many false dawns in these negotiations, this may just be the latest," he told AFP.

With less than a week to go before the next round of punitive tariffs is due to hit, Beijing's top trade envoy Liu He will Thursday meet US Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin.

"Liu He is coming with real offers, it's not an empty visit," the FT quoted a source as saying.&nbsp;

"The Chinese are ready to de-escalate," the source, briefed on the talks, added.&nbsp;

Asian stock markets had mostly closed lower on Wednesday ahead of the reports of possible progress in the talks, which could extend into Friday and with Trump present.

Asia tracked losses in Wall Street and across Europe from Tuesday as investors fretted over signs the global economy is slowing.

The International Monetary Fund has forecast the weakest growth in a decade owing to the long-running tariff disputes.

With economic data increasingly weak, the fresh hopes sparked by the reports for Thursday's talks provided some much-needed support.&nbsp;

"But overall stock markets are still stuck in a violent see-saw... as investors try to position themselves ahead of the (talks)," IG chief market analyst Chris Beauchamp said.

Meanwhile, oil prices shot 1.6 per cent higher in European afternoon trading as Turkey began an offensive against Kurdish militants in northern Syria.&nbsp;

They later fell back on data from the Energy Information Administration showed production hitting a new record high while stocks rose more than expected.

"It is a little worrying that inventories are rising despite lower prices, as it suggests that demand is weak," said market analyst David Madden at CMC Markets UK.

Crude prices then later pushed higher once again.

- Key figures around 1530 GMT -

London - FTSE 100: UP 0.3 per cent at 7,166.50 points (close)

Paris - CAC 40: UP 0.8 per cent at 5,499.14 (close)

Frankfurt - DAX 30: UP 1.0 per cent at 12,094.26 (close)

EURO STOXX 50: UP 0.8 per cent at 3,459.50&nbsp;

New York - Dow: UP 0.5 per cent at 26,295.86&nbsp;

Pound/dollar: UP at $1.2218 from $1.2213 at 2040 GMT

Euro/pound: UP at 89.85 pence from 89.69 pence

Euro/dollar: UP at $1.0979 from $1.0955

Dollar/yen: UP at 107.39 yen from 107.07 yen

Tokyo - Nikkei 225: DOWN 0.6 per cent at 21,456.38 (close)

Hong Kong - Hang Seng: DOWN 0.8 per cent at 25,682.81 (close)

Shanghai - Composite: UP 0.4 per cent at 2,924.86 (close)

Brent North Sea crude: UP 1.4 per cent at $59.05 per barrel

West Texas Intermediate: UP 1.6 per cent at $53.49 per barrel 
&nbsp;

European and US stock markets rebounded Wednesday, helped by reports that China would accept a partial trade deal with the US in key talks this week. The dollar was mixed while the pound steadied after yet more Brexit-fuelled volatility.

European and US stock markets rebounded Wednesday, helped by reports that China would accept a partial trade deal with the US in key talks this week. The dollar was mixed while the pound steadied after yet more Brexit-fuelled volatility. Crude oil prices, which had rallied over one per cent as Turkey launched an offensive against Kurdish militants in northern Syria, trimmed gains after data showed US oil output at record levels and stocks rising. China remains open to a limited trade deal as long as US President Donald Trump imposes no more tariffs, Bloomberg News and the Financial Times reported, citing people close to the upcoming talks. In return, Beijing would offer non-core concessions such as purchases of US agricultural products, the reports added. "This is likely contributing to the gains we're seeing in Europe... but unless the US is also willing to accept a limited deal -- and nothing currently suggests they are -- it may not lead to anything," noted Craig Erlam, senior market analyst at Oanda trading group. "Traders are jumping at the prospect of good news at the moment but there's been so many false dawns in these negotiations, this may just be the latest," he told AFP. With less than a week to go before the next round of punitive tariffs is due to hit, Beijing's top trade envoy Liu He will Thursday meet US Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin. "Liu He is coming with real offers, it's not an empty visit," the FT quoted a source as saying. "The Chinese are ready to de-escalate," the source, briefed on the talks, added. Asian stock markets had mostly closed lower on Wednesday ahead of the reports of possible progress in the talks, which could extend into Friday and with Trump present. Asia tracked losses in Wall Street and across Europe from Tuesday as investors fretted over signs the global economy is slowing. The International Monetary Fund has forecast the weakest growth in a decade owing to the long-running tariff disputes. With economic data increasingly weak, the fresh hopes sparked by the reports for Thursday's talks provided some much-needed support. "But overall stock markets are still stuck in a violent see-saw... as investors try to position themselves ahead of the (talks)," IG chief market analyst Chris Beauchamp said. Meanwhile, oil prices shot 1.6 per cent higher in European afternoon trading as Turkey began an offensive against Kurdish militants in northern Syria. They later fell back on data from the Energy Information Administration showed production hitting a new record high while stocks rose more than expected. "It is a little worrying that inventories are rising despite lower prices, as it suggests that demand is weak," said market analyst David Madden at CMC Markets UK. Crude prices then later pushed higher once again. - Key figures around 1530 GMT - London - FTSE 100: UP 0.3 per cent at 7,166.50 points (close) Paris - CAC 40: UP 0.8 per cent at 5,499.14 (close) Frankfurt - DAX 30: UP 1.0 per cent at 12,094.26 (close) EURO STOXX 50: UP 0.8 per cent at 3,459.50 New York - Dow: UP 0.5 per cent at 26,295.86 Pound/dollar: UP at $1.2218 from $1.2213 at 2040 GMT Euro/pound: UP at 89.85 pence from 89.69 pence Euro/dollar: UP at $1.0979 from $1.0955 Dollar/yen: UP at 107.39 yen from 107.07 yen Tokyo - Nikkei 225: DOWN 0.6 per cent at 21,456.38 (close) Hong Kong - Hang Seng: DOWN 0.8 per cent at 25,682.81 (close) Shanghai - Composite: UP 0.4 per cent at 2,924.86 (close) Brent North Sea crude: UP 1.4 per cent at $59.05 per barrel West Texas Intermediate: UP 1.6 per cent at $53.49 per barrel

Stocks recover on US-China trade deal talks optimism

The United States said Tuesday it would curb visas for Chinese officials until Beijing ends its <a href="https://www.wionews.com/world/china-tells-united-states-to-stop-interfering-in-its-affairs-after-blacklisting-of-companies-254518">"repression" of Uighurs</a> and other Muslims in the western region of Xinjiang, a day after imposing commercial restrictions.

The one-two punch by President Donald Trump's administration marks the most forceful attempt by a foreign power to address what some rights groups call a <a href="https://www.wionews.com/world/us-china-trade-talks-to-resume-thursday-white-house-254346">historic crisis in Xinjiang</a>, and comes amid a range of feuds between the United States and China.

"China has forcibly detained over one million Muslims in a brutal, systematic campaign to erase religion and culture in Xinjiang," Secretary of State Mike Pompeo wrote on Twitter.

"China must end its draconian surveillance and repression, release all those arbitrarily detained and cease its coercion of Chinese Muslims abroad," he said.

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Today, I am announcing visa restrictions on Chinese government and Communist Party officials believed to be responsible for, or complicit in, the detention or abuse of Uighurs, Kazakhs, or other Muslim minority groups in Xinjiang.
— Secretary Pompeo (@SecPompeo) <a href="https://twitter.com/SecPompeo/status/1181654413913534464?ref_src=twsrc%5Etfw">October 8, 2019</a></blockquote>
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In an accompanying statement, Pompeo said that the State Department would restrict visas granted to government and ruling Communist Party officials involved in "detention or abuse" of Uighurs, Kazakhs or members of other predominantly Muslim ethnic groups in Xinjiang.

The order will also affect their family members, including children who may be seeking to study in the United States.

Watch: Uighurs use Tiktok to expose China's detention camps in Xinjiang

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The State Department did not specify the names of officials who would be affected.

But lawmakers have specifically asked for action against Chen Quanguo, the Communist Party chief for Xinjiang.

Reputed within the party for his handling of minority groups, he earlier led iron-fisted policies aimed at crushing dissent in Tibet.

Defying Chinese protests

The US Commerce Department on Monday blacklisted 28 Chinese entities including video surveillance firm Hikvision and artificial intelligence companies Megvii Technology and SenseTime over their involvement in Xinjiang.

Beijing voiced its "strong dissatisfaction and resolute opposition" over the move and denied any human rights abuses in the restive region.

"These accusations are nothing more than an excuse for the United States to deliberately interfere in China's internal affairs," foreign ministry spokesman Geng Shuang said in Beijing.

Rights groups say more than one million Uighurs and other Muslims are being held in a vast network of camps in Xinjiang aimed at homogenizing the population to reflect China's majority Han culture.

Witnesses say that China has sought to force Uighurs to drop core practices of Islam such as fasting during Ramadan and abstaining from alcohol and pork.

China, after initially denying the camps, describes them as vocational schools aimed at dampening the allure of Islamist extremism and violence.

Authorities have cracked down especially hard since 2009, when nearly 200 people died in riots in Xinjiang's capital Urumqi, which has seen an influx of Han Chinese.

The violence was sparked by news of a factory brawl in southern China in which two Uighur migrant workers were killed.

Pompeo has previously called China's treatment of Uighurs one of the "worst stains on the world" and likened the camps to actions by Nazi Germany.

But few Muslim leaders have spoken out against a rising China with the exception of President Recep Tayyip Erdogan of Turkey, which has linguistic and cultural connections with the Uighurs.

Rights advocates also say that Trump has been inconsistent in exercising pressure over human rights, with the tycoon president warmly embracing authoritarian leaders of allies such as Egypt and Saudi Arabia.

The actions on Xinjiang come as a trade war shows no signs of abating between the United States and China, the world's two largest economies, which have imposed tariffs on billions of dollars worth of each other's goods.

At the United Nations last month, Trump also warned China that the United States was watching Hong Kong, where months of swelling protests have demanded that Beijing respect the city's semi-autonomous status.

The United States said Tuesday it would curb visas for Chinese officials until Beijing ends its "repression" of Uighurs and other Muslims in the western region of Xinjiang, a day after imposing commercial restrictions.

The United States said Tuesday it would curb visas for Chinese officials until Beijing ends its "repression" of Uighurs and other Muslims in the western region of Xinjiang, a day after imposing commercial restrictions. The one-two punch by President Donald Trump's administration marks the most forceful attempt by a foreign power to address what some rights groups call a historic crisis in Xinjiang, and comes amid a range of feuds between the United States and China. "China has forcibly detained over one million Muslims in a brutal, systematic campaign to erase religion and culture in Xinjiang," Secretary of State Mike Pompeo wrote on Twitter. "China must end its draconian surveillance and repression, release all those arbitrarily detained and cease its coercion of Chinese Muslims abroad," he said. Today, I am announcing visa restrictions on Chinese government and Communist Party officials believed to be responsible for, or complicit in, the detention or abuse of Uighurs, Kazakhs, or other Muslim minority groups in Xinjiang. — Secretary Pompeo (@SecPompeo) October 8, 2019 × In an accompanying statement, Pompeo said that the State Department would restrict visas granted to government and ruling Communist Party officials involved in "detention or abuse" of Uighurs, Kazakhs or members of other predominantly Muslim ethnic groups in Xinjiang. The order will also affect their family members, including children who may be seeking to study in the United States. Watch: Uighurs use Tiktok to expose China's detention camps in Xinjiang × The State Department did not specify the names of officials who would be affected. But lawmakers have specifically asked for action against Chen Quanguo, the Communist Party chief for Xinjiang. Reputed within the party for his handling of minority groups, he earlier led iron-fisted policies aimed at crushing dissent in Tibet. Defying Chinese protests The US Commerce Department on Monday blacklisted 28 Chinese entities including video surveillance firm Hikvision and artificial intelligence companies Megvii Technology and SenseTime over their involvement in Xinjiang. Beijing voiced its "strong dissatisfaction and resolute opposition" over the move and denied any human rights abuses in the restive region. "These accusations are nothing more than an excuse for the United States to deliberately interfere in China's internal affairs," foreign ministry spokesman Geng Shuang said in Beijing. Rights groups say more than one million Uighurs and other Muslims are being held in a vast network of camps in Xinjiang aimed at homogenizing the population to reflect China's majority Han culture. Witnesses say that China has sought to force Uighurs to drop core practices of Islam such as fasting during Ramadan and abstaining from alcohol and pork. China, after initially denying the camps, describes them as vocational schools aimed at dampening the allure of Islamist extremism and violence. Authorities have cracked down especially hard since 2009, when nearly 200 people died in riots in Xinjiang's capital Urumqi, which has seen an influx of Han Chinese. The violence was sparked by news of a factory brawl in southern China in which two Uighur migrant workers were killed. Pompeo has previously called China's treatment of Uighurs one of the "worst stains on the world" and likened the camps to actions by Nazi Germany. But few Muslim leaders have spoken out against a rising China with the exception of President Recep Tayyip Erdogan of Turkey, which has linguistic and cultural connections with the Uighurs. Rights advocates also say that Trump has been inconsistent in exercising pressure over human rights, with the tycoon president warmly embracing authoritarian leaders of allies such as Egypt and Saudi Arabia. The actions on Xinjiang come as a trade war shows no signs of abating between the United States and China, the world's two largest economies, which have imposed tariffs on billions of dollars worth of each other's goods. At the United Nations last month, Trump also warned China that the United States was watching Hong Kong, where months of swelling protests have demanded that Beijing respect the city's semi-autonomous status.

US imposes visa restrictions on Chinese officials; demands end to Uighur 'repression'

<a href="https://www.wionews.com/world/china-signals-veto-in-the-standoff-with-us-over-afghan-un-mission-diplomats-250192">China and the United States</a> have formed highly complementary, deeply integrated and mutually beneficial relations, as reflected by the statistics in a report recently released by the US-China Business Council (USCBC), Chinese Ministry of Foreign Affairs Spokesman Geng Shuang said on Friday.

Speaking at a press conference in Beijing, Geng said that China hopes the US&nbsp;could give ear to more rational voices in the country.

"We have noticed the report issued by the US-China Business Council. The views in the report are representative to some extent, and show that in the past period of time, US&nbsp;commercial and industrial fields and regional districts have been worried about the escalation of the <a href="https://www.wionews.com/world/trade-talks-seen-as-unlikely-to-mend-us-china-divide-250119">China-US&nbsp;trade frictions</a>, and expecting the two sides to solve the trade frictions properly through negotiations," Geng said.

Geng said the report indicated that concerning the goods trade, 265 US&nbsp;electoral districts saw a decline in the export volume to China in 2018, 157 of which saw a double-digit drop. The central and western US&nbsp;and the plain area, where soybeans and other agricultural products were exported, have been most severely affected; as to the service trade, the export volume to China declined in 100 electoral districts in 2017, while in 2016, the volume in 380 electoral districts showed a double-digit or even faster growth.

Geng said that against the backdrop of the China-US&nbsp;trade dispute, the US&nbsp;exports to China in 2018 increased by only 0.75 percent, while in the meantime, the growth rates were respectively 15.3 percent, 14.3 percent and 11.7 percent from South Korea, Japan and European Union.

"The statistics quoted in the report once again prove that the US&nbsp;and China have formed highly complementary, deeply integrated and mutually beneficial relations. The escalating trade dispute is accelerating the market shares loss by the US&nbsp;It damages the interests of the US&nbsp;commercial and industrial fields at first and ultimately damages the interests of the ordinary Americans. In general, trade dispute damages both the US&nbsp;itself and others, and the loss outweighs the gains. We hope the US&nbsp;can give ear to domestic rational voices and work together with China to reach a mutually beneficial and win-win deal through negotiations based on mutual respect, equality and mutual benefits, which not only agrees with the interests of the two countries and their peoples, but is also a common expectation of the international community," Geng said.

The USCBC recently issued the report to analyze the changes of the US&nbsp;voting districts’ goods and service exports to China in the past 10 years, and concluded that China remains a major destination for the US&nbsp;manufacturing and service industries, but the escalating US-China tensions and the uncertainty of the trade dispute would have a negative impact on the US&nbsp;enterprises to expand their markets in China.

China and the United States have formed highly complementary, deeply integrated and mutually beneficial relations, as reflected by the statistics in a report recently released by the US-China Business Council (USCBC), Chinese Ministry of Foreign Affairs Spokesman Geng Shuang said on Friday.

China and the United States have formed highly complementary, deeply integrated and mutually beneficial relations, as reflected by the statistics in a report recently released by the US-China Business Council (USCBC), Chinese Ministry of Foreign Affairs Spokesman Geng Shuang said on Friday. Speaking at a press conference in Beijing, Geng said that China hopes the US could give ear to more rational voices in the country. "We have noticed the report issued by the US-China Business Council. The views in the report are representative to some extent, and show that in the past period of time, US commercial and industrial fields and regional districts have been worried about the escalation of the China-US trade frictions, and expecting the two sides to solve the trade frictions properly through negotiations," Geng said. Geng said the report indicated that concerning the goods trade, 265 US electoral districts saw a decline in the export volume to China in 2018, 157 of which saw a double-digit drop. The central and western US and the plain area, where soybeans and other agricultural products were exported, have been most severely affected; as to the service trade, the export volume to China declined in 100 electoral districts in 2017, while in 2016, the volume in 380 electoral districts showed a double-digit or even faster growth. Geng said that against the backdrop of the China-US trade dispute, the US exports to China in 2018 increased by only 0.75 percent, while in the meantime, the growth rates were respectively 15.3 percent, 14.3 percent and 11.7 percent from South Korea, Japan and European Union. "The statistics quoted in the report once again prove that the US and China have formed highly complementary, deeply integrated and mutually beneficial relations. The escalating trade dispute is accelerating the market shares loss by the US It damages the interests of the US commercial and industrial fields at first and ultimately damages the interests of the ordinary Americans. In general, trade dispute damages both the US itself and others, and the loss outweighs the gains. We hope the US can give ear to domestic rational voices and work together with China to reach a mutually beneficial and win-win deal through negotiations based on mutual respect, equality and mutual benefits, which not only agrees with the interests of the two countries and their peoples, but is also a common expectation of the international community," Geng said. The USCBC recently issued the report to analyze the changes of the US voting districts’ goods and service exports to China in the past 10 years, and concluded that China remains a major destination for the US manufacturing and service industries, but the escalating US-China tensions and the uncertainty of the trade dispute would have a negative impact on the US enterprises to expand their markets in China.

Beijing, Washington hold deeply integrated, mutually beneficial ties: China

US trade negotiators want to make "meaningful progress" in upcoming talks with China, Treasury Secretary Steven Mnuchin said Thursday, one day after <a href="https://www.wionews.com/world/as-goodwill-gesture-us-will-delay-5-boost-in-tariffs-on-chinese-imports-trump-249102">conciliatory gestures by both sides</a> boosted hopes of an eventual resolution.

Mnuchin said on CNBC he is "cautiously optimistic" about chances for a deal to resolve the conflict, while President Donald Trump hinted at a watering down of his position with the possibility of an interim deal.

Washington and Beijing will first hold talks at the deputy level to ensure senior officials who meet later can advance towards an agreement.

Also read--&nbsp;<a href="https://www.wionews.com/world/explainer-us-china-trade-war-the-levers-they-can-pull-224809">US-China trade war: The levers they can pull</a>

"We don't want a trip that's just a series of discussions. We want to make meaningful progress," Mnuchin said.

However, he again warned that Trump will only accept a good deal, and is willing to raise tariffs if necessary.

Trump told reporters he preferred to seal a complete deal, but that he might be willing to consider an interim agreement.

"I'd rather get the whole deal done," he said, but noted analysts have been discussing the possibility of an interim deal "meaning we'll do pieces of it, the easy ones first."

"There's no easy or hard, there's a deal or there's not a deal. It's something we would consider I guess," he said.

There have been positive signs this week in the <a href="https://www.wionews.com/world/explaining-the-us-china-trade-war-which-grabbed-spotlight-in-2018-185043">trade conflict</a>, now entering its second year, as Trump agreed to Beijing's request to delay one round of tariff increases on $250 billion worth of goods for two weeks, until October 15, after China agreed to spare some US products from its retaliation.

China added Thursday that it was "making enquiries" about buying American farm products including big-ticket items like pork and soybeans, not on its previous list of spared goods.

Watch: US-China trade friction hurting world economic chain: Chinese scholars

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"It is expected that China will be buying large amounts of our agricultural products!" Trump tweeted early Thursday.

American farmers have borne the brunt of the US-China trade spat, especially after US soy exports collapsed last year, virtually wiping out foreign markets farmers had spent years cultivating.

Trump has previously accused Beijing of backsliding on promises to increase purchases of US farm goods and has offered billions in aid to farms badly damaged in the trade war.

'Cautiously optimistic'

Senior US and Chinese officials are due to hold preliminary talks later this month, in preparation for meetings in early October led by Mnuchin and US Trade Representative Bob Lighthizer.

Mnuchin said "we clearly didn't make the progress we wanted to" at the last meeting in Shanghai in late July, but he added: "I'm cautiously optimistic. I take the Chinese in good faith that they want to come here with a deal now."

But he said Trump "is prepared to keep these tariffs in place. He's prepared to raise tariffs if we need to raise tariffs."

Trump's hardline trade advisor Peter Navarro said on CNN Thursday that the US is focused on addressing "seven acts of economic aggression" by China including "cyber-hacking of our computers to steal our business secrets, intellectual property theft" and "manipulation of the currency."

However, Mnuchin said Hong Kong's pro-democracy movement "is definitely not on the table," as "that is an issue for the secretary of state to deal with."

Millions of people have demonstrated over the last 14 weeks in the biggest challenge to China's rule of the financial hub since its handover from Britain in 1997.

Hong Kong's pro-Beijing Chief Executive Carrie Lam warned the United States on Tuesday not to "interfere" with her government's response.

'Eating the tariffs'

Reducing America's soaring trade deficit with China has long been a principal aim in Trump's trade battle with Beijing, but so far it has not led to a reduction in the trade imbalance. In 2018, the US goods trade deficit with China was $419.52 billion.

Trump has long viewed deficits as a defeat for the United States, arguing that they amount to stealing -- a position rejected by most economists.

Meanwhile, the US president maintains that the protracted trade war is damaging China more than the United States, and China is "eating the tariffs."&nbsp;

The US Treasury has taken in $66 billion in customs duties in the 11 months through August, 73 per cent more than in the same period of the prior fiscal year -- tariffs paid by American importers.

Experts have warned there are signs the US is also feeling the pinch, with job creation slowing across major industries last month, and manufacturing seeing a decided slowdown.

 
&nbsp;

US trade negotiators want to make "meaningful progress" in upcoming talks with China, Treasury Secretary Steven Mnuchin said Thursday, one day after conciliatory gestures by both sides boosted hopes of an eventual resolution.

US trade negotiators want to make "meaningful progress" in upcoming talks with China, Treasury Secretary Steven Mnuchin said Thursday, one day after conciliatory gestures by both sides boosted hopes of an eventual resolution. Mnuchin said on CNBC he is "cautiously optimistic" about chances for a deal to resolve the conflict, while President Donald Trump hinted at a watering down of his position with the possibility of an interim deal. Washington and Beijing will first hold talks at the deputy level to ensure senior officials who meet later can advance towards an agreement. Also read-- US-China trade war: The levers they can pull "We don't want a trip that's just a series of discussions. We want to make meaningful progress," Mnuchin said. However, he again warned that Trump will only accept a good deal, and is willing to raise tariffs if necessary. Trump told reporters he preferred to seal a complete deal, but that he might be willing to consider an interim agreement. "I'd rather get the whole deal done," he said, but noted analysts have been discussing the possibility of an interim deal "meaning we'll do pieces of it, the easy ones first." "There's no easy or hard, there's a deal or there's not a deal. It's something we would consider I guess," he said. There have been positive signs this week in the trade conflict, now entering its second year, as Trump agreed to Beijing's request to delay one round of tariff increases on $250 billion worth of goods for two weeks, until October 15, after China agreed to spare some US products from its retaliation. China added Thursday that it was "making enquiries" about buying American farm products including big-ticket items like pork and soybeans, not on its previous list of spared goods. Watch: US-China trade friction hurting world economic chain: Chinese scholars × "It is expected that China will be buying large amounts of our agricultural products!" Trump tweeted early Thursday. American farmers have borne the brunt of the US-China trade spat, especially after US soy exports collapsed last year, virtually wiping out foreign markets farmers had spent years cultivating. Trump has previously accused Beijing of backsliding on promises to increase purchases of US farm goods and has offered billions in aid to farms badly damaged in the trade war. 'Cautiously optimistic' Senior US and Chinese officials are due to hold preliminary talks later this month, in preparation for meetings in early October led by Mnuchin and US Trade Representative Bob Lighthizer. Mnuchin said "we clearly didn't make the progress we wanted to" at the last meeting in Shanghai in late July, but he added: "I'm cautiously optimistic. I take the Chinese in good faith that they want to come here with a deal now." But he said Trump "is prepared to keep these tariffs in place. He's prepared to raise tariffs if we need to raise tariffs." Trump's hardline trade advisor Peter Navarro said on CNN Thursday that the US is focused on addressing "seven acts of economic aggression" by China including "cyber-hacking of our computers to steal our business secrets, intellectual property theft" and "manipulation of the currency." However, Mnuchin said Hong Kong's pro-democracy movement "is definitely not on the table," as "that is an issue for the secretary of state to deal with." Millions of people have demonstrated over the last 14 weeks in the biggest challenge to China's rule of the financial hub since its handover from Britain in 1997. Hong Kong's pro-Beijing Chief Executive Carrie Lam warned the United States on Tuesday not to "interfere" with her government's response. 'Eating the tariffs' Reducing America's soaring trade deficit with China has long been a principal aim in Trump's trade battle with Beijing, but so far it has not led to a reduction in the trade imbalance. In 2018, the US goods trade deficit with China was $419.52 billion. Trump has long viewed deficits as a defeat for the United States, arguing that they amount to stealing -- a position rejected by most economists. Meanwhile, the US president maintains that the protracted trade war is damaging China more than the United States, and China is "eating the tariffs." The US Treasury has taken in $66 billion in customs duties in the 11 months through August, 73 per cent more than in the same period of the prior fiscal year -- tariffs paid by American importers. Experts have warned there are signs the US is also feeling the pinch, with job creation slowing across major industries last month, and manufacturing seeing a decided slowdown.

US wants to make 'meaningful progress' in China trade talks: Treasury Secretary

The British pound hit a seven-week high against the dollar Friday on easing fears of a no-deal Brexit.

Stock markets meanwhile won support after <a href="https://www.wionews.com/world/asian-markets-extend-gains-as-optimism-slowly-returns-249012">China</a> said some US agricultural products including pork and soybeans would be exempt from added tariffs, ahead of trade talks between Beijing and Washington scheduled for October.

The announcement is the latest in a series of appeasement measures between the world's two biggest economies, who for the past year have been locked in a bitter trade war resulting in tit-for-tat tariffs on hundreds of billions of dollars in bilateral trade.

In foreign exchange, the pound was in focus after the UK currency jumped one per cent to $1.2476, the highest level since late July.

Sterling won strong ground also versus the euro, which had been gaining on European Central Bank plans to stimulate the struggling eurozone economy.

The pound "has rallied as traders are less fearful about the possibility of a no-deal Brexit", noted David Madden, an analyst at CMC Markets UK.

It comes after Britain's parliamentary speaker warned Prime Minister <a href="https://www.wionews.com/world/cautiously-optimistic-on-brexit-deal-says-pm-boris-johnson-ahead-of-eu-meeting-249472">Boris Johnson</a> not to disobey the law by refusing to ask for a Brexit delay and vowed to thwart any attempt to circumvent legislation.

'Most terrible example'

Parliament passed a law earlier this month aimed at preventing a no-deal Brexit, but Johnson is adamant Britain will still leave the EU on schedule on October 31 with or without a withdrawal agreement.

The speaker of Britain's House of Commons John Bercow said disobeying the law "would be the most terrible example to set to the rest of society", according to Britain's Press Association news agency.

In a speech in London on Thursday, Bercow warned if the government comes close to doing so, parliament "would want to cut off such a possibility and do so forcefully".

The pound's rally in reaction to Bercow hit London's benchmark FTSE 100 stocks index that features a number of multinationals earning in dollars.

"The FTSE 100 is slightly lower as the strength of sterling is causing the British index to underperform against its continental counterparts," Madden added.

"Internationally focused firms are lower."

No big bazooka

Earlier, equities rose in Asia after the ECB on Thursday unveiled a fresh round of economic stimulus and another interest rate cut.

Global markets had been buoyed this week by a growing sense that central banks globally were set on easing monetary policy to support growth, and the ECB did not disappoint.

It said it would restart its bond-buying quantitative easing programme to boost liquidity, provide support for struggling banks and reduce borrowing costs deeper into negative territory in a bid to kickstart lending.

The announcement, while slightly short of expectations, was broadly cheered by markets, sending equities in Europe and New York higher Thursday.

"In the end, it wasn't a big bazooka, but ECB President Mario Draghi did his level best trying to convince investors that monetary policy will remain extremely accommodative for some considerable time to come," said Gavin Friend, a senior market strategist at National Australia Bank.

The news also provided further hope that the Federal Reserve would cut rates at its meeting next week, even though data showed a jump in US inflation last month.

The British pound hit a seven-week high against the dollar Friday on easing fears of a no-deal Brexit. Stock markets meanwhile won support after China said some US agricultural products including pork and soybeans would be exempt from added tariffs, ahead of trade talks between Beijing and Washington scheduled for October.

The British pound hit a seven-week high against the dollar Friday on easing fears of a no-deal Brexit. Stock markets meanwhile won support after China said some US agricultural products including pork and soybeans would be exempt from added tariffs, ahead of trade talks between Beijing and Washington scheduled for October. The announcement is the latest in a series of appeasement measures between the world's two biggest economies, who for the past year have been locked in a bitter trade war resulting in tit-for-tat tariffs on hundreds of billions of dollars in bilateral trade. In foreign exchange, the pound was in focus after the UK currency jumped one per cent to $1.2476, the highest level since late July. Sterling won strong ground also versus the euro, which had been gaining on European Central Bank plans to stimulate the struggling eurozone economy. The pound "has rallied as traders are less fearful about the possibility of a no-deal Brexit", noted David Madden, an analyst at CMC Markets UK. It comes after Britain's parliamentary speaker warned Prime Minister Boris Johnson not to disobey the law by refusing to ask for a Brexit delay and vowed to thwart any attempt to circumvent legislation. 'Most terrible example' Parliament passed a law earlier this month aimed at preventing a no-deal Brexit, but Johnson is adamant Britain will still leave the EU on schedule on October 31 with or without a withdrawal agreement. The speaker of Britain's House of Commons John Bercow said disobeying the law "would be the most terrible example to set to the rest of society", according to Britain's Press Association news agency. In a speech in London on Thursday, Bercow warned if the government comes close to doing so, parliament "would want to cut off such a possibility and do so forcefully". The pound's rally in reaction to Bercow hit London's benchmark FTSE 100 stocks index that features a number of multinationals earning in dollars. "The FTSE 100 is slightly lower as the strength of sterling is causing the British index to underperform against its continental counterparts," Madden added. "Internationally focused firms are lower." No big bazooka Earlier, equities rose in Asia after the ECB on Thursday unveiled a fresh round of economic stimulus and another interest rate cut. Global markets had been buoyed this week by a growing sense that central banks globally were set on easing monetary policy to support growth, and the ECB did not disappoint. It said it would restart its bond-buying quantitative easing programme to boost liquidity, provide support for struggling banks and reduce borrowing costs deeper into negative territory in a bid to kickstart lending. The announcement, while slightly short of expectations, was broadly cheered by markets, sending equities in Europe and New York higher Thursday. "In the end, it wasn't a big bazooka, but ECB President Mario Draghi did his level best trying to convince investors that monetary policy will remain extremely accommodative for some considerable time to come," said Gavin Friend, a senior market strategist at National Australia Bank. The news also provided further hope that the Federal Reserve would cut rates at its meeting next week, even though data showed a jump in US inflation last month.

Pound jumps on Brexit hopes as global stocks firmer

China's exports fell by 1.0 per cent on-year in August, official data showed Sunday, amid a bruising trade war with the US that has roiled markets in the world's top two economies.

The drop comes after a surprise 3.3 per cent rebound in July despite the yearlong battle with Washington and weakening global demand.&nbsp;

But economists cited by Bloomberg had forecast a 2.2 percent rise ahead of the release of Sunday's figures by the customs administration.&nbsp;

China's trade surplus also dropped sharply in August to $34.83 billion, from $44.58 billion the previous month, while imports continued a four-month decline at 5.6 percent on-year, matching the July figure.&nbsp;

Washington imposed new tariffs on September 1 as it stepped up its high-pressure campaign to coerce Beijing into a new trade deal.&nbsp;

The additional levies come on top of the 25 per cent tariffs on $250 billion in imports already in place.

China said Thursday that new talks with the US would be held in Washington in early October.&nbsp;

In a sign of continued pressure on the Chinese economy, Beijing's central bank announced Friday it would cut deposit reserve requirements for banks.

The measure would allow an estimated $126 billion in additional loans to businesses facing an economic slowdown.&nbsp;

China's GDP growth was 6.2 per cent on-year in the second quarter, the lowest rate in nearly three decades.

China's exports fell by 1.0 per cent on-year in August, official data showed Sunday, amid a bruising trade war with the US that has roiled markets in the world's top two economies.

China's exports fell by 1.0 per cent on-year in August, official data showed Sunday, amid a bruising trade war with the US that has roiled markets in the world's top two economies. The drop comes after a surprise 3.3 per cent rebound in July despite the yearlong battle with Washington and weakening global demand. But economists cited by Bloomberg had forecast a 2.2 percent rise ahead of the release of Sunday's figures by the customs administration. China's trade surplus also dropped sharply in August to $34.83 billion, from $44.58 billion the previous month, while imports continued a four-month decline at 5.6 percent on-year, matching the July figure. Washington imposed new tariffs on September 1 as it stepped up its high-pressure campaign to coerce Beijing into a new trade deal. The additional levies come on top of the 25 per cent tariffs on $250 billion in imports already in place. China said Thursday that new talks with the US would be held in Washington in early October. In a sign of continued pressure on the Chinese economy, Beijing's central bank announced Friday it would cut deposit reserve requirements for banks. The measure would allow an estimated $126 billion in additional loans to businesses facing an economic slowdown. China's GDP growth was 6.2 per cent on-year in the second quarter, the lowest rate in nearly three decades.

China's exports fall in August as US trade war rumbles

<a href="https://www.wionews.com/opinions/us-china-trade-conflict-lack-of-trust-hobbling-the-ability-to-reach-a-deal-198533">China and the United States</a> began imposing additional tariffs on each other's goods on Sunday, the latest escalation in a <a href="https://www.wionews.com/world/amid-heightened-us-china-tensions-science-suffers-collateral-damage-228220">bruising trade war</a>, despite signs that <a href="https://www.google.com/url?client=internal-uds-cse&amp;cx=006054055338965708568:09spwrlibei&amp;q=https://www.wionews.com/world/signs-of-hope-as-donald-trump-says-us-china-trade-talks-back-on-245748&amp;sa=U&amp;ved=2ahUKEwia2s3E8K7kAhUl73MBHdHSBDAQFjAFegQIARAC&amp;usg=AOvVaw2ERWpNggJdHuglmhX1o7lr">talks would resume </a>sometime this month.

A new round of tariffs took effect from 0401 GMT, with Beijing's levy of 5% on US crude marking the first time the fuel has been targeted since the world's two largest economies started their trade war more than a year ago.

The Trump administration will begin collecting 15% tariffs on more than $125 billion in Chinese imports, including smart speakers, Bluetooth headphones and many types of footwear.

In retaliation,<a href="https://www.google.com/url?client=internal-uds-cse&amp;cx=006054055338965708568:09spwrlibei&amp;q=https://www.wionews.com/opinions/us-china-trade-war-is-making-china-stronger-234526&amp;sa=U&amp;ved=2ahUKEwia2s3E8K7kAhUl73MBHdHSBDAQFjACegQIDhAC&amp;usg=AOvVaw3Gf_BMvfr050lbCQW5O5ty"> China </a>started to impose additional tariffs on some of the US&nbsp;goods on a $75-billion target list. Beijing did not specify the value of the goods that face higher tariffs from Sunday.

The extra tariffs of 5% and 10% were levied on 1,717 items of a total of 5,078 products originating from the United States. Beijing will start collecting additional tariffs on the rest from December 15.

Chinese state media struck a defiant note.

"The United States should learn how to behave like a responsible global power and stop acting as a 'school bully'," the official Xinhua news agency said.

"As the world's only superpower, it needs to shoulder its due responsibility, and join other countries in making this world a better and more prosperous place. Only then can America become great again."

Tariffs could not impede China's development, said the official People's Daily of the ruling Communist Party.

"China's booming economy has made China a fertile ground for investment that foreign companies cannot ignore," it said, in a commentary under the name 'Zhong Sheng', or 'Voice of China', which is often used to state its view on foreign policy issues.

Last month, US President Donald Trump said he was increasing existing and planned tariffs by 5% on about $550-billion worth of Chinese imports after Beijing announced its own retaliatory tariffs on US goods.

Tariffs of 15% on cellphones, laptop computers, toys and clothing are to take effect on December 15.

The US Trade Representative's Office said on Thursday it would collect public comments through September&nbsp;20 on a planned tariff increase to 30% on a $250-billion list of goods already hit with a 25% tariff.

Trade teams from China and the United States continue to talk and will meet in September, but tariff hikes on Chinese goods set to go in place on Sunday will not be delayed, Trump has said.

For two years, the Trump administration has sought to pressure China to make sweeping changes to its policies on intellectual property protection, forced transfers of technology to Chinese firms, industrial subsidies and market access.

China has consistently denied Washington's accusations that it engages in unfair trade practices, vowing to fight back in kind and criticising US measures as protectionist.

China has pressed the United States to cancel the tariff increase but said last week that a September round of talks was being discussed between the two.

The trade war further strains Beijing-Washington ties, already overshadowed by US&nbsp;freedom of navigation exercises near Chinese-occupied islands in the disputed South China Sea, and US support for self-ruled and democratic Taiwan, which China claims as its own.

China and the United States began imposing additional tariffs on each other's goods on Sunday, the latest escalation in a bruising trade war, despite signs that talks would resume sometime this month.

China and the United States began imposing additional tariffs on each other's goods on Sunday, the latest escalation in a bruising trade war, despite signs that talks would resume sometime this month. A new round of tariffs took effect from 0401 GMT, with Beijing's levy of 5% on US crude marking the first time the fuel has been targeted since the world's two largest economies started their trade war more than a year ago. The Trump administration will begin collecting 15% tariffs on more than $125 billion in Chinese imports, including smart speakers, Bluetooth headphones and many types of footwear. In retaliation, China started to impose additional tariffs on some of the US goods on a $75-billion target list. Beijing did not specify the value of the goods that face higher tariffs from Sunday. The extra tariffs of 5% and 10% were levied on 1,717 items of a total of 5,078 products originating from the United States. Beijing will start collecting additional tariffs on the rest from December 15. Chinese state media struck a defiant note. "The United States should learn how to behave like a responsible global power and stop acting as a 'school bully'," the official Xinhua news agency said. "As the world's only superpower, it needs to shoulder its due responsibility, and join other countries in making this world a better and more prosperous place. Only then can America become great again." Tariffs could not impede China's development, said the official People's Daily of the ruling Communist Party. "China's booming economy has made China a fertile ground for investment that foreign companies cannot ignore," it said, in a commentary under the name 'Zhong Sheng', or 'Voice of China', which is often used to state its view on foreign policy issues. Last month, US President Donald Trump said he was increasing existing and planned tariffs by 5% on about $550-billion worth of Chinese imports after Beijing announced its own retaliatory tariffs on US goods. Tariffs of 15% on cellphones, laptop computers, toys and clothing are to take effect on December 15. The US Trade Representative's Office said on Thursday it would collect public comments through September 20 on a planned tariff increase to 30% on a $250-billion list of goods already hit with a 25% tariff. Trade teams from China and the United States continue to talk and will meet in September, but tariff hikes on Chinese goods set to go in place on Sunday will not be delayed, Trump has said. For two years, the Trump administration has sought to pressure China to make sweeping changes to its policies on intellectual property protection, forced transfers of technology to Chinese firms, industrial subsidies and market access. China has consistently denied Washington's accusations that it engages in unfair trade practices, vowing to fight back in kind and criticising US measures as protectionist. China has pressed the United States to cancel the tariff increase but said last week that a September round of talks was being discussed between the two. The trade war further strains Beijing-Washington ties, already overshadowed by US freedom of navigation exercises near Chinese-occupied islands in the disputed South China Sea, and US support for self-ruled and democratic Taiwan, which China claims as its own.

China, US kick off new round of tariffs  on each other's goods

Stocks floated higher on Thursday, lifted by positive sentiment surrounding the <a href="https://www.wionews.com/world/china-hopes-us-will-create-conditions-necessary-for-september-trade-talks-246427">US-China trade war</a>, while the pound steadied after a Brexit-fueled slump.

China's Commerce Ministry hinted Beijing could break the cycle of tit-for-tat retaliation in the trade war with the United States, while in Washington US President Donald Trump said the two sides continued to talk.

Hope the countries could avoid catastrophe sent Wall Street higher for a second day while European stocks rebounded and London consolidated gains. Asian bourses were mainly flat.

"People are holding out hope," Maris Ogg of Tower Bridge Advisors told AFP, although that optimism may prove short lived.

"If the trade wars go away or dissipates, clearly you have a healthier economic environment," she said. "But you need some concrete actions for this to have long term impact."

In Milan, the FTSE MIB index gained almost 2.0 percent after Italian President Sergio Mattarella gave Prime Minister Giuseppe Conte a mandate to form a new government &nbsp; &nbsp; &nbsp; &nbsp;&nbsp;

Investors were mulling the significance of a fall in yields on 10-year US Treasurys, which recently dropped below that for two-year Treasury notes -- widely viewed as a reliable recession indicator.

It comes against a backdrop of slowing global growth.

In foreign exchange, the pound was stable a day after it fell on UK Prime Minister Boris Johnson's shock decision to bring an end to the parliamentary year and not restart it until mid-October.

While he said the extended recess was to draw up a full legislative program, anti-Brexiters were fuming that it would cut short any time they could have to debate a plan to avert a no-deal exit from the EU on October 31, with some calling it a "coup."

Johnson could face a vote of no confidence, which could lead to a British general election and continued uncertainty for the already struggling economy.

The euro fell back as incoming European Central Bank chief Christine Lagarde signaled that she would stick with Mario Draghi's controversial expansionary monetary policy that has propped up the eurozone economy amid growing risks to growth.

- Key figures around 2100 GMT -

New York - Dow: UP 1.3 percent at 26,362.25 (close)

New York - S&amp;P 500: UP 1.3 percent at 2,924.58 (close)

New York - Nasdaq: UP 1.5 percent at 7,973.39 (close)

London - FTSE 100: UP 1.0 percent at 7,184.32 points (close)

Frankfurt - DAX 30: UP 1.2 percent at 11,838.88 (close)

Paris - CAC 40: UP 1.5 percent at 5,449.97 (close)

EURO STOXX 50: UP 1.4 percent at 3,411.33 (close)

Tokyo - Nikkei 225: DOWN 0.1 percent at 20,460.93 (close)

Hong Kong - Hang Seng: UP 0.3 percent at 25,703.50 (close)

Shanghai - Composite: DOWN 0.1 percent at 2,890.92 (close)

Pound/dollar: DOWN at $1.2182 from $1.2213 at 2100 GMT

Euro/pound: UP at 90.76 pence from 90.68 pence

Euro/dollar: DOWN at $1.1057 from $1.1076

Dollar/yen: UP at 106.51 yen from 106.14 yen

Brent North Sea crude: UP 59 cents at $61.08 per barrel

West Texas Intermediate: UP 93 cents at $56.71 per barrel 
&nbsp;

Stocks floated higher on Thursday, lifted by positive sentiment surrounding the US-China trade war, while the pound steadied after a Brexit-fueled slump. China's Commerce Ministry hinted Beijing could break the cycle of tit-for-tat retaliation in the trade war with the United States, while in Washington US President Donald Trump said the two sides continued to talk.

Stocks floated higher on Thursday, lifted by positive sentiment surrounding the US-China trade war, while the pound steadied after a Brexit-fueled slump. China's Commerce Ministry hinted Beijing could break the cycle of tit-for-tat retaliation in the trade war with the United States, while in Washington US President Donald Trump said the two sides continued to talk. Hope the countries could avoid catastrophe sent Wall Street higher for a second day while European stocks rebounded and London consolidated gains. Asian bourses were mainly flat. "People are holding out hope," Maris Ogg of Tower Bridge Advisors told AFP, although that optimism may prove short lived. "If the trade wars go away or dissipates, clearly you have a healthier economic environment," she said. "But you need some concrete actions for this to have long term impact." In Milan, the FTSE MIB index gained almost 2.0 percent after Italian President Sergio Mattarella gave Prime Minister Giuseppe Conte a mandate to form a new government Investors were mulling the significance of a fall in yields on 10-year US Treasurys, which recently dropped below that for two-year Treasury notes -- widely viewed as a reliable recession indicator. It comes against a backdrop of slowing global growth. In foreign exchange, the pound was stable a day after it fell on UK Prime Minister Boris Johnson's shock decision to bring an end to the parliamentary year and not restart it until mid-October. While he said the extended recess was to draw up a full legislative program, anti-Brexiters were fuming that it would cut short any time they could have to debate a plan to avert a no-deal exit from the EU on October 31, with some calling it a "coup." Johnson could face a vote of no confidence, which could lead to a British general election and continued uncertainty for the already struggling economy. The euro fell back as incoming European Central Bank chief Christine Lagarde signaled that she would stick with Mario Draghi's controversial expansionary monetary policy that has propped up the eurozone economy amid growing risks to growth. - Key figures around 2100 GMT - New York - Dow: UP 1.3 percent at 26,362.25 (close) New York - S&P 500: UP 1.3 percent at 2,924.58 (close) New York - Nasdaq: UP 1.5 percent at 7,973.39 (close) London - FTSE 100: UP 1.0 percent at 7,184.32 points (close) Frankfurt - DAX 30: UP 1.2 percent at 11,838.88 (close) Paris - CAC 40: UP 1.5 percent at 5,449.97 (close) EURO STOXX 50: UP 1.4 percent at 3,411.33 (close) Tokyo - Nikkei 225: DOWN 0.1 percent at 20,460.93 (close) Hong Kong - Hang Seng: UP 0.3 percent at 25,703.50 (close) Shanghai - Composite: DOWN 0.1 percent at 2,890.92 (close) Pound/dollar: DOWN at $1.2182 from $1.2213 at 2100 GMT Euro/pound: UP at 90.76 pence from 90.68 pence Euro/dollar: DOWN at $1.1057 from $1.1076 Dollar/yen: UP at 106.51 yen from 106.14 yen Brent North Sea crude: UP 59 cents at $61.08 per barrel West Texas Intermediate: UP 93 cents at $56.71 per barrel

Global stocks boosted by China-US talk hopes

President Donald Trump said <a href="https://www.wionews.com/business-economy/india-to-woo-foreign-firms-like-apple-to-capitalise-on-us-china-trade-war-246456">US and Chinese trade officials</a> were due to hold discussions on Thursday, days before Washington is due to raise tariffs on billions in Chinese goods.

"There's a talk scheduled for today at a different level," Trump told Fox News Radio, without elaborating.

He rebutted prior news reports sceptical of his claims that <a href="https://www.wionews.com/world/china-hopes-us-will-create-conditions-necessary-for-september-trade-talks-246427">Beijing and Washington</a> held talks by telephone last week.

"Yes, they've been talking," he said.

The US Trade Representative's office, which is leading the US negotiations with China, did not immediately respond to an AFP request for comment.

Earlier on Thursday, China's Commerce Ministry helped cheer stock markets by signalling that Beijing may not respond in kind to Trump's latest tariff increases and was still willing to negotiate.

Earlier this week, Chinese officials appeared to dispute Trump's claims that the sides had held telephone calls, saying they were not aware of any communications.

After a sharp deterioration this month in the year-long trade war, Washington on Sunday is due to begin the first of a new wave of tariff increases on Chinese goods, drawing warnings from various industries about falling profits and recession from trade groups.

Trump earlier this month called for 10 per cent tariffs on $300 billion in goods that would hit September 1 and December 15. But after Beijing retaliated by targeting $75 billion in US exports, Trump raised the new tariffs to 15 per cent.

In addition, existing 25 per cent duties on $250 billion in Chinese products will rise to 30 per cent starting October 1.

President Donald Trump said US and Chinese trade officials were due to hold discussions on Thursday, days before Washington is due to raise tariffs on billions in Chinese goods.

President Donald Trump said US and Chinese trade officials were due to hold discussions on Thursday, days before Washington is due to raise tariffs on billions in Chinese goods. "There's a talk scheduled for today at a different level," Trump told Fox News Radio, without elaborating. He rebutted prior news reports sceptical of his claims that Beijing and Washington held talks by telephone last week. "Yes, they've been talking," he said. The US Trade Representative's office, which is leading the US negotiations with China, did not immediately respond to an AFP request for comment. Earlier on Thursday, China's Commerce Ministry helped cheer stock markets by signalling that Beijing may not respond in kind to Trump's latest tariff increases and was still willing to negotiate. Earlier this week, Chinese officials appeared to dispute Trump's claims that the sides had held telephone calls, saying they were not aware of any communications. After a sharp deterioration this month in the year-long trade war, Washington on Sunday is due to begin the first of a new wave of tariff increases on Chinese goods, drawing warnings from various industries about falling profits and recession from trade groups. Trump earlier this month called for 10 per cent tariffs on $300 billion in goods that would hit September 1 and December 15. But after Beijing retaliated by targeting $75 billion in US exports, Trump raised the new tariffs to 15 per cent. In addition, existing 25 per cent duties on $250 billion in Chinese products will rise to 30 per cent starting October 1.

US, China to talk trade on Thursday: President Donald Trump

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