Tapping factories in Brazil and India has not lessened<a href="https://www.wionews.com/business-economy/apple-debuts-credit-card-as-it-readies-tv-launch-244559"> Apple</a> Inc's dependence on China, the company's supply chain data shows, raising the stakes for the iPhone maker as US President Donald Trump wages a trade war and promises more tariffs.

Apple faces levies of 15% imposed by Trump's administration on major products made in China such as smartwatches and wireless headphones on Sept. 1, with a tariff on its biggest seller, the iPhone, to take effect on December&nbsp;15.

Few American firms are as tightly bound to Asia's largest economy as Apple. Contract factories owned by Hon Hai Precision Industry Co Ltd's Foxconn, Pegatron Corp, Wistron Corp and others employ hundreds of thousands of workers to assemble Apple devices.

In recent years, Apple's contract manufacturers have expanded into other countries. India, for example, had no Apple contract manufacturer locations in 2015 but expanded to three assembly facilities by 2019, including a factory owned by Foxconn, which plans to make models from the iPhone X family of devices, Reuters reported last year.

Apple taps the India operations to avoid steep import duties on iPhones in one of the last fast-growing mobile phone markets on the planet, similar to Apple and Foxconn's move to open a production facility in Brazil in 2011.

But the factories outside China are smaller and, in the case of India and Brazil, Apple only uses them to meet domestic demand. Apple's contract factories inside China, meanwhile, have added far more locations than outside, with Foxconn alone expanding from 19 locations in 2015 to 29 in 2019 and Pegatron going from eight to 12, according to Apple's data. The new locations come as Apple has added watches, smart speakers and wireless headphones to its product lineup.

And beyond the contract factories, the rest of Apple's suppliers - the companies that sell it chips, glass, aluminium casings, cables, circuit boards and much more - became more concentrated in China. Among all supplier locations, 44.9% were in China in 2015, a proportion that rose to 47.6% by 2019, the data showed.

Reuters analysed five years' worth of supply chain data published by Apple. The data includes more than 750 locations each year between 2015 and 2019 for the California company's top 200 suppliers based on Apple's spending. Apple does not disclose how much it spends with each, and the companies on the list can change as different suppliers make the top-200 cutoff among Apple's thousands of suppliers.

Reuters sorted the data and calculated the overall portion of Apple's supply chain in China. In a few cases each year, Apple did not provide a specific address and Reuters excluded that location.

Apple declined to comment on Reuters' analysis. In July, Chief Executive Tim Cook told investors on the company's quarterly earnings call that he "wouldn't put a lot of stock into" speculation about how the company would shift production because of US tariffs.

"The vast majority of our products are kind of made everywhere," Cook said on the call. "There is a significant level of content in the United States, and a lot from Japan to Korea to China, and the European Union also contributes a fair amount. ... I think that will carry the day in the future as well."

No place like China

Apple faces hurdles in diversifying beyond China, where the clustering of multiple suppliers allows it to make hundreds of millions of devices per year while holding only a few days' worth of inventory, which is critical to the free cash flow Apple investors prize.

Other phone makers ship far fewer units and have more flexibility. Alphabet Inc’s Google is shifting its Pixel smartphone production to Vietnam from China starting this year as it builds a cheap supply chain in Southeast Asia, the Nikkei business daily reported on Wednesday.

But Apple's scale works against it because few other nations have workforces as large as China. Factories require highly skilled engineers to design and troubleshoot custom tools and processes. Vietnam, where Apple has manufactured accessories for years, has a population less than one-tenth the size of China.

Even if Apple can make devices in India or Vietnam, the volumes would be small compared with Apple's overall needs.

Outside of China, "there few places in the world that have the infrastructure to produce 600,000 phones a day," said Dave Evans, chief executive of San Francisco supply chain firm Fictiv.

Apple has so far been spared tariffs on major products, winning a reprieve last year on many wireless devices. And Cook has cultivated a close relationship with Trump over dinners and private meetings at the White House.

Apple has told trade officials that it generally believes tariffs will result in higher prices for US&nbsp;consumers but has not said whether it plans to pass tariffs onto customers by raising prices.

For electronics products, where the circuit board is made can sometimes determine the product's country of origin, said George R. Tuttle III, a customs attorney who has worked with electronics firms.

That leaves open the possibility that device makers could make circuit boards or other key components outside China while still assembling devices there to avoid tariffs.

Apple has disclosed no such plans. But the India unit of Foxconn, which also performs work for HMD Global's Nokia-branded phones and Xiaomi Corp in addition to Apple, has developed the ability to make circuit boards in India, two industry sources told Reuters last year.

Tapping factories in Brazil and India has not lessened Apple Inc's dependence on China, the company's supply chain data shows, raising the stakes for the iPhone maker as US President Donald Trump wages a trade war and promises more tariffs.

Tapping factories in Brazil and India has not lessened Apple Inc's dependence on China, the company's supply chain data shows, raising the stakes for the iPhone maker as US President Donald Trump wages a trade war and promises more tariffs. Apple faces levies of 15% imposed by Trump's administration on major products made in China such as smartwatches and wireless headphones on Sept. 1, with a tariff on its biggest seller, the iPhone, to take effect on December 15. Few American firms are as tightly bound to Asia's largest economy as Apple. Contract factories owned by Hon Hai Precision Industry Co Ltd's Foxconn, Pegatron Corp, Wistron Corp and others employ hundreds of thousands of workers to assemble Apple devices. In recent years, Apple's contract manufacturers have expanded into other countries. India, for example, had no Apple contract manufacturer locations in 2015 but expanded to three assembly facilities by 2019, including a factory owned by Foxconn, which plans to make models from the iPhone X family of devices, Reuters reported last year. Apple taps the India operations to avoid steep import duties on iPhones in one of the last fast-growing mobile phone markets on the planet, similar to Apple and Foxconn's move to open a production facility in Brazil in 2011. But the factories outside China are smaller and, in the case of India and Brazil, Apple only uses them to meet domestic demand. Apple's contract factories inside China, meanwhile, have added far more locations than outside, with Foxconn alone expanding from 19 locations in 2015 to 29 in 2019 and Pegatron going from eight to 12, according to Apple's data. The new locations come as Apple has added watches, smart speakers and wireless headphones to its product lineup. And beyond the contract factories, the rest of Apple's suppliers - the companies that sell it chips, glass, aluminium casings, cables, circuit boards and much more - became more concentrated in China. Among all supplier locations, 44.9% were in China in 2015, a proportion that rose to 47.6% by 2019, the data showed. Reuters analysed five years' worth of supply chain data published by Apple. The data includes more than 750 locations each year between 2015 and 2019 for the California company's top 200 suppliers based on Apple's spending. Apple does not disclose how much it spends with each, and the companies on the list can change as different suppliers make the top-200 cutoff among Apple's thousands of suppliers. Reuters sorted the data and calculated the overall portion of Apple's supply chain in China. In a few cases each year, Apple did not provide a specific address and Reuters excluded that location. Apple declined to comment on Reuters' analysis. In July, Chief Executive Tim Cook told investors on the company's quarterly earnings call that he "wouldn't put a lot of stock into" speculation about how the company would shift production because of US tariffs. "The vast majority of our products are kind of made everywhere," Cook said on the call. "There is a significant level of content in the United States, and a lot from Japan to Korea to China, and the European Union also contributes a fair amount. ... I think that will carry the day in the future as well." No place like China Apple faces hurdles in diversifying beyond China, where the clustering of multiple suppliers allows it to make hundreds of millions of devices per year while holding only a few days' worth of inventory, which is critical to the free cash flow Apple investors prize. Other phone makers ship far fewer units and have more flexibility. Alphabet Inc’s Google is shifting its Pixel smartphone production to Vietnam from China starting this year as it builds a cheap supply chain in Southeast Asia, the Nikkei business daily reported on Wednesday. But Apple's scale works against it because few other nations have workforces as large as China. Factories require highly skilled engineers to design and troubleshoot custom tools and processes. Vietnam, where Apple has manufactured accessories for years, has a population less than one-tenth the size of China. Even if Apple can make devices in India or Vietnam, the volumes would be small compared with Apple's overall needs. Outside of China, "there few places in the world that have the infrastructure to produce 600,000 phones a day," said Dave Evans, chief executive of San Francisco supply chain firm Fictiv. Apple has so far been spared tariffs on major products, winning a reprieve last year on many wireless devices. And Cook has cultivated a close relationship with Trump over dinners and private meetings at the White House. Apple has told trade officials that it generally believes tariffs will result in higher prices for US consumers but has not said whether it plans to pass tariffs onto customers by raising prices. For electronics products, where the circuit board is made can sometimes determine the product's country of origin, said George R. Tuttle III, a customs attorney who has worked with electronics firms. That leaves open the possibility that device makers could make circuit boards or other key components outside China while still assembling devices there to avoid tariffs. Apple has disclosed no such plans. But the India unit of Foxconn, which also performs work for HMD Global's Nokia-branded phones and Xiaomi Corp in addition to Apple, has developed the ability to make circuit boards in India, two industry sources told Reuters last year.

Apple's data shows a deepening dependence on China as Trump's tariffs loom

There were signs of a thaw in frosty trade-war tensions between China and the US on Monday as President Donald Trump said delegations would "very shortly" resume talks and Beijing's top negotiator called for "calm".

The two sides have been embroiled in a <a href="https://www.wionews.com/world/us-president-trump-says-china-wants-to-negotiate-over-trade-war-245660">bruising year-long dispute</a> that has seen tariffs slapped on billions of dollars worth of goods in two-way trade, with the row escalating over the weekend.

But just three days after the announcement of further mutual tariff hikes, Trump told reporters at the G7 summit in France's Biarritz he had taken two "<a href="https://www.wionews.com/world/us-president-trump-says-china-wants-to-negotiate-over-trade-war-245660">very, very good" phone calls from Chinese officials</a>.

"China called last night... said let's get back to the table. So we'll be getting back to the table," he said on Monday, adding that "they want to make a deal".

Trump's comments followed moves by China's most powerful trade negotiator, Vice Premier Liu He, to take the edge off the soaring tensions.

Watch: Trump slaps new tariffs on China, Additional 5% Tariff On Chinese Imports

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"We are willing to solve the problem through consultation and cooperation with a calm attitude," said Liu, according to a report by Chinese news outlet Caixin.

"We firmly oppose the escalation of the trade war," he said, speaking at the opening ceremony of the 2019 Smart China Expo in the southwestern city of Chongqing.

US Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin travelled to Shanghai in July for a round of trade talks, where discussions were described as "constructive" but ended with no announcements.

Monday's detente came after Trump increased tariffs on more than half-a-trillion dollars worth of imports in a new round of punitive measures that are roiling global markets.

The US announcement on Friday followed an earlier surprise notification from Beijing that it would introduce fresh tariffs on US goods worth $75 billion.

Some of these measures are due to take effect on September 1, with the rest to follow over the coming months.

Currency tumbles

On Twitter, Trump also told American firms to start looking for an alternative to production in China -- though he and his top aides later downplayed the idea.

Meanwhile, Chinese foreign ministry spokesman Geng Shuang said he was not aware of the calls mentioned by Trump and angrily criticised the latest tariffs at a regular press briefing in Beijing.

The US move "tramples on multilateral trade rules, damages the interests of China and the United States, threatens the security of the global industrial supply chain, drags down international trade and world economic growth", he said.

US allies have pressured Trump at the ongoing G7 summit, saying the trade war is putting the world economy at risk.

China's currency slid to its weakest point in more than 11 years on Monday amid the ongoing tensions and fears of a global downturn.

The onshore yuan was around 7.1425 to the US dollar in late-morning Asian trading -- its weakest point since early 2008 -- and by the afternoon it had reached 7.1581.

The yuan, or renminbi as it is also known, is not freely convertible and the Chinese government limits its movement against the dollar to a two percent range on either side of a figure that the central bank sets each day.

The People's Bank of China has set that rate steadily weaker in recent weeks -- allowing the yuan to depreciate, making Chinese exports cheaper and offsetting some of the burden of US tariffs.

US politicians have long accused China of keeping its currency artificially low to increase the competitiveness of its manufacturers.

The yuan breached the key 7.0 threshold against the dollar earlier in August, just days after the US announced its plans to impose tariffs next month on Chinese imports.

There were signs of a thaw in frosty trade-war tensions between China and the US on Monday as President Donald Trump said delegations would "very shortly" resume talks and Beijing's top negotiator called for "calm".

There were signs of a thaw in frosty trade-war tensions between China and the US on Monday as President Donald Trump said delegations would "very shortly" resume talks and Beijing's top negotiator called for "calm". The two sides have been embroiled in a bruising year-long dispute that has seen tariffs slapped on billions of dollars worth of goods in two-way trade, with the row escalating over the weekend. But just three days after the announcement of further mutual tariff hikes, Trump told reporters at the G7 summit in France's Biarritz he had taken two "very, very good" phone calls from Chinese officials. "China called last night... said let's get back to the table. So we'll be getting back to the table," he said on Monday, adding that "they want to make a deal". Trump's comments followed moves by China's most powerful trade negotiator, Vice Premier Liu He, to take the edge off the soaring tensions. Watch: Trump slaps new tariffs on China, Additional 5% Tariff On Chinese Imports × "We are willing to solve the problem through consultation and cooperation with a calm attitude," said Liu, according to a report by Chinese news outlet Caixin. "We firmly oppose the escalation of the trade war," he said, speaking at the opening ceremony of the 2019 Smart China Expo in the southwestern city of Chongqing. US Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin travelled to Shanghai in July for a round of trade talks, where discussions were described as "constructive" but ended with no announcements. Monday's detente came after Trump increased tariffs on more than half-a-trillion dollars worth of imports in a new round of punitive measures that are roiling global markets. The US announcement on Friday followed an earlier surprise notification from Beijing that it would introduce fresh tariffs on US goods worth $75 billion. Some of these measures are due to take effect on September 1, with the rest to follow over the coming months. Currency tumbles On Twitter, Trump also told American firms to start looking for an alternative to production in China -- though he and his top aides later downplayed the idea. Meanwhile, Chinese foreign ministry spokesman Geng Shuang said he was not aware of the calls mentioned by Trump and angrily criticised the latest tariffs at a regular press briefing in Beijing. The US move "tramples on multilateral trade rules, damages the interests of China and the United States, threatens the security of the global industrial supply chain, drags down international trade and world economic growth", he said. US allies have pressured Trump at the ongoing G7 summit, saying the trade war is putting the world economy at risk. China's currency slid to its weakest point in more than 11 years on Monday amid the ongoing tensions and fears of a global downturn. The onshore yuan was around 7.1425 to the US dollar in late-morning Asian trading -- its weakest point since early 2008 -- and by the afternoon it had reached 7.1581. The yuan, or renminbi as it is also known, is not freely convertible and the Chinese government limits its movement against the dollar to a two percent range on either side of a figure that the central bank sets each day. The People's Bank of China has set that rate steadily weaker in recent weeks -- allowing the yuan to depreciate, making Chinese exports cheaper and offsetting some of the burden of US tariffs. US politicians have long accused China of keeping its currency artificially low to increase the competitiveness of its manufacturers. The yuan breached the key 7.0 threshold against the dollar earlier in August, just days after the US announced its plans to impose tariffs next month on Chinese imports.

Signs of hope as Donald Trump says US-China trade talks back on

US Treasury Secretary Steven Mnuchin on Sunday backed up <a href="https://www.wionews.com/world/trumps-only-regret-on-china-is-not-raising-the-tariffs-higher-white-house-245529">Donald Trump</a>'s assertion that he indeed can force American companies to stop doing business in China, but noted he has yet to do so.

Mnuchin -- who was speaking on "Fox News Sunday" from France, where he was attending the G7 summit with Trump -- said that authority comes from the somewhat obscure International Emergency Economic Powers Act, a federal law passed in 1977.

The law grants the president powers to regulate international trade in the face of an "unusual and extraordinary threat" from abroad to US foreign policy, national security or the economy. But it has never been used to tip the scales in a trade dispute.

"He would have the authority to do that... He has not done that," Mnuchin said.

"I think what he was saying is that he is ordering companies to start looking," he added.

The Trump administration wants US businesses to operate in places where "trading partners respect us and trade with us fairly," Mnuchin added.

On Friday, Trump sounded the alarm just before announcing an escalation in tariffs on Chinese imports.

"Our great American companies are hereby ordered to immediately start looking for an alternative to China, including bringing your companies HOME and making your products in the USA," he said on Twitter.

Top Trump economic aide Larry Kudlow, who was also with the president in France, said the president was within his rights to ban US firms from producing in China, but emphasized: "There's nothing right now in the cards."

"Come back to the USA, where we have very low corporate tax rates and massive deregulation programs," Kudlow said on CNN's "State of the Union."&nbsp;

"Our economy is doing just fine right now, and so come home."

Also on Sunday, Trump himself said on the issue: "I have no plan right now."&nbsp;

US Treasury Secretary Steven Mnuchin on Sunday backed up Donald Trump's assertion that he indeed can force American companies to stop doing business in China, but noted he has yet to do so.

US Treasury Secretary Steven Mnuchin on Sunday backed up Donald Trump's assertion that he indeed can force American companies to stop doing business in China, but noted he has yet to do so. Mnuchin -- who was speaking on "Fox News Sunday" from France, where he was attending the G7 summit with Trump -- said that authority comes from the somewhat obscure International Emergency Economic Powers Act, a federal law passed in 1977. The law grants the president powers to regulate international trade in the face of an "unusual and extraordinary threat" from abroad to US foreign policy, national security or the economy. But it has never been used to tip the scales in a trade dispute. "He would have the authority to do that... He has not done that," Mnuchin said. "I think what he was saying is that he is ordering companies to start looking," he added. The Trump administration wants US businesses to operate in places where "trading partners respect us and trade with us fairly," Mnuchin added. On Friday, Trump sounded the alarm just before announcing an escalation in tariffs on Chinese imports. "Our great American companies are hereby ordered to immediately start looking for an alternative to China, including bringing your companies HOME and making your products in the USA," he said on Twitter. Top Trump economic aide Larry Kudlow, who was also with the president in France, said the president was within his rights to ban US firms from producing in China, but emphasized: "There's nothing right now in the cards." "Come back to the USA, where we have very low corporate tax rates and massive deregulation programs," Kudlow said on CNN's "State of the Union." "Our economy is doing just fine right now, and so come home." Also on Sunday, Trump himself said on the issue: "I have no plan right now."

Donald Trump could force US firms out of China but 'has not done that': US Treasury Secretary Steven Mnuchin

China on Saturday angrily hit out at the latest <a href="https://www.wionews.com/world/trump-heaps-another-5-tariff-on-chinese-goods-in-latest-tit-for-tat-escalation-245211">US tariff hikes on its goods</a>, saying a "bullying" Washington would eventually "eat its own bitter fruit".

European leaders have also warned US President Donald Trump of the dangers of trade skirmishes with China and Europe, which look set to dominate the G7 summit due to begin in France.

Trump on Friday increased existing and planned tariffs on a total of $550 billion in Chinese goods, in response to new tit-for-tat levy hikes announced earlier that day by Beijing on $75 billion of US imports.

A Chinese commerce ministry spokesman on Saturday denounced Washington's "unilateral and bullying trade protectionism".

Watch: Trump slaps new tariffs on China, Additional 5% Tariff On Chinese Imports

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The tariff increase "seriously undermines the multilateral trading system and the normal international trade order, and the US will surely eat its own bitter fruit.

"The Chinese side strongly urges the US side not to misjudge the situation, not to underestimate the determination of the Chinese people, and immediately stop its mistaken actions, otherwise all consequences will be borne by the US," the spokesman said.

By the end of the year the feud will affect nearly all imports and exports between the two countries, with US companies -- many of whom rely on China for inputs -- particularly worried by the rapidly changing conflict.

EU Council President Donald Tusk on Saturday warned that Trump's escalating trade tensions with China and Europe could force economies around the world into recession.

Meanwhile French President Emmanuel Macron, host of the G7 summit in the French city of Biarritz, also warned of the widespread fallout from the trade disputes.

China on Saturday angrily hit out at the latest US tariff hikes on its goods, saying a "bullying" Washington would eventually "eat its own bitter fruit". European leaders have also warned US President Donald Trump of the dangers of trade skirmishes with China and Europe, which look set to dominate the G7 summit due to begin in France.

China on Saturday angrily hit out at the latest US tariff hikes on its goods, saying a "bullying" Washington would eventually "eat its own bitter fruit". European leaders have also warned US President Donald Trump of the dangers of trade skirmishes with China and Europe, which look set to dominate the G7 summit due to begin in France. Trump on Friday increased existing and planned tariffs on a total of $550 billion in Chinese goods, in response to new tit-for-tat levy hikes announced earlier that day by Beijing on $75 billion of US imports. A Chinese commerce ministry spokesman on Saturday denounced Washington's "unilateral and bullying trade protectionism". Watch: Trump slaps new tariffs on China, Additional 5% Tariff On Chinese Imports × The tariff increase "seriously undermines the multilateral trading system and the normal international trade order, and the US will surely eat its own bitter fruit. "The Chinese side strongly urges the US side not to misjudge the situation, not to underestimate the determination of the Chinese people, and immediately stop its mistaken actions, otherwise all consequences will be borne by the US," the spokesman said. By the end of the year the feud will affect nearly all imports and exports between the two countries, with US companies -- many of whom rely on China for inputs -- particularly worried by the rapidly changing conflict. EU Council President Donald Tusk on Saturday warned that Trump's escalating trade tensions with China and Europe could force economies around the world into recession. Meanwhile French President Emmanuel Macron, host of the G7 summit in the French city of Biarritz, also warned of the widespread fallout from the trade disputes.

'Bullying' US will 'eat its own bitter fruit,' says China slamming US over new tariffs

US President Donald Trump on Friday lashed back at a new round of Chinese tariffs by heaping an additional 5 per cent duty on some $550 billion in targeted Chinese goods in the latest tit-for-tat trade war escalation by the world's two largest economies.

Trump's move, announced on Twitter, came hours after<a href="https://www.wionews.com/world/i-order-us-companies-to-immediately-look-for-an-alternative-to-china-trump-245191"> China unveiled retaliatory tariffs on $75 billion worth of US goods</a>, prompting the president earlier in the day to demand US companies move their operations out of China.

The intensifying US-China trade war stoked market fears that the global economy will tip into recession, sending US stocks into a tailspin, with the Nasdaq Composite down 3 per cent, and the S&amp;P 500 down 2.6 per cent.

US Treasury yields also fell as investors sought safe-haven assets, and crude oil, targeted for the first time by Chinese tariffs, fell sharply.

Trump's tariff response was announced after markets closed on Friday, leaving potentially more damage for next week.

"Sadly, past Administrations have allowed China to get so far ahead of Fair and Balanced Trade that it has become a great burden to the American Taxpayer," Trump said on Twitter. "As President, I can no longer allow this to happen!"

He said the United States would raise its existing tariffs on $250 billion worth of Chinese imports to 30 per cent&nbsp;from the current 25 per cent&nbsp;beginning October&nbsp;1.

At the same time, he announced an increase in planned tariffs on the remaining $300 billion worth of Chinese goods to 15 per cent&nbsp;from 10 per cent. The United States will begin imposing those tariffs on some products starting September&nbsp;1, but tariffs on about half of those goods have been delayed until December&nbsp;15.

The US Trade Representative's office confirmed the effective dates, but said it would conduct a public comment period before imposing the 30 per cent&nbsp;tariff rate on October&nbsp;1.

Trump has accused China of unfair trade practices and pushed for a deal that would rebalance the relationship in favour of US&nbsp;manufacturers and workers.

"We don’t need China and, frankly, would be far better off without them. The vast amounts of money made and stolen by China from the United States, year after year, for decades, will and must STOP," Trump tweeted earlier on Friday.

"Our great American companies are hereby ordered to immediately start looking for an alternative to China, including bringing your companies HOME and making your products in the USA."

It's unclear what legal authority Trump would be able to use to compel US companies to close operations in China or stop sourcing products from the country.

Trump also said he was ordering shippers including FedEx,&nbsp;Amazon.com, UPS&nbsp;and the US&nbsp;Postal Service to search out and refuse all deliveries of the opioid fentanyl to the United States.

US&nbsp;business groups reacted angrily to Trump's latest tariff escalation.

"It's impossible for businesses to plan for the future in this type of environment. The administration's approach clearly isn't working, and the answer isn't more taxes on American businesses and consumers. Where does this end?" said David French, a senior vice president for the National Retail Federation.

The US Chamber of Commerce rebuffed Trump's call, urging "continued, constructive engagement."

"Time is of the essence. We do not want to see a further deterioration of US-China relations," Myron Brilliant, executive vice president and head of the business group's international affairs, said in a statement.

China's Commerce Ministry said that on September&nbsp;1 and December&nbsp;15 it will impose additional tariffs of 5 per cent&nbsp;or 10 per cent&nbsp;on a total of 5,078 products originating from the United States including agricultural products such as soybeans, beef and pork, as well as small aircraft. Beijing is also reinstituting tariffs on cars and auto parts originating from the United States that it suspended last December as US-China trade talks accelerated.

"China's decision to implement additional tariffs was forced by the US's unilateralism and protectionism," the Commerce Ministry said in a statement.

"We want a deal, but it doesn't mean we want a deal that is not based on mutual respect or good for China's interests," a Chinese diplomatic source said. "If the United States levies tariffs, China will have counter-measures."

US President Donald Trump on Friday lashed back at a new round of Chinese tariffs by heaping an additional 5 per cent duty on some $550 billion in targeted Chinese goods in the latest tit-for-tat trade war escalation by the world's two largest economies.

US President Donald Trump on Friday lashed back at a new round of Chinese tariffs by heaping an additional 5 per cent duty on some $550 billion in targeted Chinese goods in the latest tit-for-tat trade war escalation by the world's two largest economies. Trump's move, announced on Twitter, came hours after China unveiled retaliatory tariffs on $75 billion worth of US goods, prompting the president earlier in the day to demand US companies move their operations out of China. The intensifying US-China trade war stoked market fears that the global economy will tip into recession, sending US stocks into a tailspin, with the Nasdaq Composite down 3 per cent, and the S&P 500 down 2.6 per cent. US Treasury yields also fell as investors sought safe-haven assets, and crude oil, targeted for the first time by Chinese tariffs, fell sharply. Trump's tariff response was announced after markets closed on Friday, leaving potentially more damage for next week. "Sadly, past Administrations have allowed China to get so far ahead of Fair and Balanced Trade that it has become a great burden to the American Taxpayer," Trump said on Twitter. "As President, I can no longer allow this to happen!" He said the United States would raise its existing tariffs on $250 billion worth of Chinese imports to 30 per cent from the current 25 per cent beginning October 1. At the same time, he announced an increase in planned tariffs on the remaining $300 billion worth of Chinese goods to 15 per cent from 10 per cent. The United States will begin imposing those tariffs on some products starting September 1, but tariffs on about half of those goods have been delayed until December 15. The US Trade Representative's office confirmed the effective dates, but said it would conduct a public comment period before imposing the 30 per cent tariff rate on October 1. Trump has accused China of unfair trade practices and pushed for a deal that would rebalance the relationship in favour of US manufacturers and workers. "We don’t need China and, frankly, would be far better off without them. The vast amounts of money made and stolen by China from the United States, year after year, for decades, will and must STOP," Trump tweeted earlier on Friday. "Our great American companies are hereby ordered to immediately start looking for an alternative to China, including bringing your companies HOME and making your products in the USA." It's unclear what legal authority Trump would be able to use to compel US companies to close operations in China or stop sourcing products from the country. Trump also said he was ordering shippers including FedEx, Amazon.com, UPS and the US Postal Service to search out and refuse all deliveries of the opioid fentanyl to the United States. US business groups reacted angrily to Trump's latest tariff escalation. "It's impossible for businesses to plan for the future in this type of environment. The administration's approach clearly isn't working, and the answer isn't more taxes on American businesses and consumers. Where does this end?" said David French, a senior vice president for the National Retail Federation. The US Chamber of Commerce rebuffed Trump's call, urging "continued, constructive engagement." "Time is of the essence. We do not want to see a further deterioration of US-China relations," Myron Brilliant, executive vice president and head of the business group's international affairs, said in a statement. China's Commerce Ministry said that on September 1 and December 15 it will impose additional tariffs of 5 per cent or 10 per cent on a total of 5,078 products originating from the United States including agricultural products such as soybeans, beef and pork, as well as small aircraft. Beijing is also reinstituting tariffs on cars and auto parts originating from the United States that it suspended last December as US-China trade talks accelerated. "China's decision to implement additional tariffs was forced by the US's unilateralism and protectionism," the Commerce Ministry said in a statement. "We want a deal, but it doesn't mean we want a deal that is not based on mutual respect or good for China's interests," a Chinese diplomatic source said. "If the United States levies tariffs, China will have counter-measures."

Trump heaps another 5% tariff on Chinese goods in latest tit-for-tat escalation

China announced Friday it will hit US imports worth $75 billion with new tariffs starting September 1 and December 15, as retaliation for Washington's planned tariff hikes in a bruising trade war.

The punitive tariffs will range from 5 per cent to 10 per cent on 5,078 items from the US, China's state council tariff office said.

Beijing also announced it will impose a 25 per cent tariff on US autos and a 5 per cent tariff on auto parts starting December 15.

China had lifted punitive tariffs on American cars and auto parts earlier this year as a goodwill measure while trade talks were underway.

The tariff hikes by the US "have led to the continuous escalation of China-US economic and trade frictions, violating the consensus reached by the two heads of state in Argentina and the consensus reached in Osaka," China's State Council Tariff Commission Office said in a statement.

US President Donald Trump has imposed steep tariffs on $250 billion in Chinese goods, with a further $300 billion in imports targeted for new duties in two more rounds, September 1 and December 15.

On August 16, US President Donald Trump said on Thursday that US and Chinese negotiators were holding "productive" trade talks and expected them to meet in September.

Nonetheless, China had vowed to counter US tariffs on $300 billion of Chinese goods while calling on the United States to meet it halfway on a potential trade deal.

Earlier this month, the Chinese finance ministry said in a statement that Washington's tariffs violated a consensus reached between Trump and Chinese President Xi Jinping at a June summit in Japan to resolve their disputes via negotiation.

In a separate statement, China's foreign ministry spokeswoman, Hua Chunying had&nbsp;said, "We hope the US&nbsp;will meet China halfway, and implement the consensus of the two heads of the two countries in Osaka."

China hopes to find mutually acceptable solutions through dialogue and consultation on the basis of equality and mutual respect, she added.

Trump, who is seeking re-election in 2020 and had made the economy and his tough stance on China a key part of his 2016 campaign for the White House, on Thursday said any agreement must meet US demands.

China announced Friday it will hit US imports worth $75 billion with new tariffs starting September 1 and December 15, as retaliation for Washington's planned tariff hikes in a bruising trade war.

China announced Friday it will hit US imports worth $75 billion with new tariffs starting September 1 and December 15, as retaliation for Washington's planned tariff hikes in a bruising trade war. The punitive tariffs will range from 5 per cent to 10 per cent on 5,078 items from the US, China's state council tariff office said. Beijing also announced it will impose a 25 per cent tariff on US autos and a 5 per cent tariff on auto parts starting December 15. China had lifted punitive tariffs on American cars and auto parts earlier this year as a goodwill measure while trade talks were underway. The tariff hikes by the US "have led to the continuous escalation of China-US economic and trade frictions, violating the consensus reached by the two heads of state in Argentina and the consensus reached in Osaka," China's State Council Tariff Commission Office said in a statement. US President Donald Trump has imposed steep tariffs on $250 billion in Chinese goods, with a further $300 billion in imports targeted for new duties in two more rounds, September 1 and December 15. On August 16, US President Donald Trump said on Thursday that US and Chinese negotiators were holding "productive" trade talks and expected them to meet in September. Nonetheless, China had vowed to counter US tariffs on $300 billion of Chinese goods while calling on the United States to meet it halfway on a potential trade deal. Earlier this month, the Chinese finance ministry said in a statement that Washington's tariffs violated a consensus reached between Trump and Chinese President Xi Jinping at a June summit in Japan to resolve their disputes via negotiation. In a separate statement, China's foreign ministry spokeswoman, Hua Chunying had said, "We hope the US will meet China halfway, and implement the consensus of the two heads of the two countries in Osaka." China hopes to find mutually acceptable solutions through dialogue and consultation on the basis of equality and mutual respect, she added. Trump, who is seeking re-election in 2020 and had made the economy and his tough stance on China a key part of his 2016 campaign for the White House, on Thursday said any agreement must meet US demands.

Will impose new tariffs on $75 billion US imports: China

US Commerce Secretary Wilbur Ross said Monday the US government will <a href="https://www.wionews.com/world/us-to-extend-huaweis-partial-reprieve-on-supply-curbs-sources-243540">extend a reprieve given to Huawei Technologie</a>s that permits the Chinese firm to buy supplies from US companies so that it can service existing customers, even as nearly 50 of its units were being added to a US economic blacklist.

The "temporary general license," due to expire on Monday, will be extended for Huawei for 90 days, he told Fox Business Network Monday, confirming an expected decision first reported Friday by Reuters. He also said he was adding 46 <a href="https://www.wionews.com/world/huawei-launches-first-product-with-own-operating-system-242084">Huawei</a> affiliates to the Entity List, raising the total number to more than 100 Huawei entities that are covered by the restrictions.

Ross said the extension was to aid US customers, many of which operate networks in rural America.

"We're giving them a little more time to wean themselves off," Ross said.

Watch: US President Donald Trump denies business possibility with Huawei

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Shortly after blacklisting the company in May, the Commerce Department initially allowed Huawei to purchase some American-made goods in a move aimed at minimizing disruption for its customers.

Huawei did not immediately comment Monday.

The extension, through Nov. 19, renews an agreement continuing the Chinese company's ability to maintain existing telecommunications networks and provide software updates to Huawei handsets.

Asked what will happen in November to US companies, Ross said,&nbsp;"Everybody has had plenty of notice of it, there have been plenty of discussions with the president."

When the Commerce Department blocked Huawei from buying US goods earlier this year, it was seen as a major escalation in the Sino-US trade war.

The US government blacklisted Huawei, alleging the Chinese company is involved in activities contrary to national security or foreign policy interests.

As an example, the blacklisting order cited a pending federal criminal case concerning allegations Huawei violated US sanctions against Iran. Huawei has pleaded not guilty in the case.

The order noted that the indictment also accused Huawei of “deceptive and obstructive acts.”

At the same time, the United States says Huawei's smartphones and network equipment could be used by China to spy on Americans, allegations the company has repeatedly denied.

Huawei, the world's largest telecommunications equipment maker, is still prohibited from buying American parts and components to manufacture new products without additional special licenses.

Many Huawei suppliers have requested special licenses to sell to the firm. Ross told reporters late last month he had received more than 50 applications, and that he expected to receive more. He said on Monday that there were no "specific licenses being granted for anything."

Out of $70 billion that Huawei spent buying components in 2018, some $11 billion went to US companies including Qualcomm, Intel and Micron Technology. Intel declined to comment on Monday. 
&nbsp;

US Commerce Secretary Wilbur Ross said Monday the US government will extend a reprieve given to Huawei Technologies that permits the Chinese firm to buy supplies from US companies so that it can service existing customers, even as nearly 50 of its units were being added to a US economic blacklist.

US Commerce Secretary Wilbur Ross said Monday the US government will extend a reprieve given to Huawei Technologies that permits the Chinese firm to buy supplies from US companies so that it can service existing customers, even as nearly 50 of its units were being added to a US economic blacklist. The "temporary general license," due to expire on Monday, will be extended for Huawei for 90 days, he told Fox Business Network Monday, confirming an expected decision first reported Friday by Reuters. He also said he was adding 46 Huawei affiliates to the Entity List, raising the total number to more than 100 Huawei entities that are covered by the restrictions. Ross said the extension was to aid US customers, many of which operate networks in rural America. "We're giving them a little more time to wean themselves off," Ross said. Watch: US President Donald Trump denies business possibility with Huawei × Shortly after blacklisting the company in May, the Commerce Department initially allowed Huawei to purchase some American-made goods in a move aimed at minimizing disruption for its customers. Huawei did not immediately comment Monday. The extension, through Nov. 19, renews an agreement continuing the Chinese company's ability to maintain existing telecommunications networks and provide software updates to Huawei handsets. Asked what will happen in November to US companies, Ross said, "Everybody has had plenty of notice of it, there have been plenty of discussions with the president." When the Commerce Department blocked Huawei from buying US goods earlier this year, it was seen as a major escalation in the Sino-US trade war. The US government blacklisted Huawei, alleging the Chinese company is involved in activities contrary to national security or foreign policy interests. As an example, the blacklisting order cited a pending federal criminal case concerning allegations Huawei violated US sanctions against Iran. Huawei has pleaded not guilty in the case. The order noted that the indictment also accused Huawei of “deceptive and obstructive acts.” At the same time, the United States says Huawei's smartphones and network equipment could be used by China to spy on Americans, allegations the company has repeatedly denied. Huawei, the world's largest telecommunications equipment maker, is still prohibited from buying American parts and components to manufacture new products without additional special licenses. Many Huawei suppliers have requested special licenses to sell to the firm. Ross told reporters late last month he had received more than 50 applications, and that he expected to receive more. He said on Monday that there were no "specific licenses being granted for anything." Out of $70 billion that Huawei spent buying components in 2018, some $11 billion went to US companies including Qualcomm, Intel and Micron Technology. Intel declined to comment on Monday.

US gives Huawei another 90 days reprieve from ban amid economic blacklist

White House officials pushed back on Sunday against concerns that economic growth may be faltering, saying they saw little risk of recession despite a volatile week on global bond markets, and insisting their trade war with China was doing no damage to the United States.

Trump administration economic adviser Larry Kudlow said trade deputies from the two countries would speak within 10 days and "if those deputies meetings pan out...we are planning to have China come to the USA" to advance negotiations over ending a trade battle that has emerged as a potential risk to global economic growth.

But even with the stalks stalled for now and the threat of greater tariffs and other trade restrictions hanging over the world economy, Kudlow said on "Fox News Sunday" the United States remained "in pretty good shape."

"There is no recession in sight," Kudlow said. "Consumers are working. Their wages are rising. They are spending and they are saving."

His comments follow a rocky week in which concerns about a possible US recession began to drive financial markets and seemed to put administration officials on edge about whether the economy would hold up through the 2020 presidential election campaign. Democrats on Sunday argued Trump's trade policies are now posing an acute, short-term risk.

US stock markets tanked last week on recession fears with all three major US indexes closing down about 3% on Wednesday only to pair their losses by Friday due to expectations the European Central Bank might cut rates.

The Fed and 19 other central banks have already loosened monetary policy in what Fitch Ratings last week described as the largest shift since the 2009 recession.

Markets are expecting even more cuts to come. For a brief time last week bond investors demanded a higher interest rate on 2-year Treasury bonds than for 10-year Treasury bonds, a potential signal of lost faith in near-term economic growth.

Much of the uncertainty surrounds prospects for a resolution of the trade tensions between the United States and China.

The administration last week delayed the imposition of some of its planned tariffs to avoid disrupting the upcoming Christmas shopping season. President Donald Trump told reporters he had a call with China’s President Xi Jinping scheduled soon. It had not taken place as of Saturday night.

Trade adviser Peter Navarro on Sunday dismissed last week's market volatility as any sort of warning sign, saying "good" economic dynamics were encouraging investors to move money to the United States.

"We have the strongest economy in the world and money is coming here for our stock market. It's also coming here to chase yield in our bond markets," Navarro told ABC's "This Week."

For bond markets, the sort of movement Navarro described is often driven by trouble - in this case the possibility that the trade battle with China is lasting far longer than expected and becoming disruptive to business investment and growth.

Still, Navarro said the tariffs on Chinese goods, "are not hurting anybody here."

The US economy does continue to grow and add jobs each month. Retail sales in July jumped a stronger-than-expected 0.7%, the government reported last week, and Kudlow said that number showed that the main prop of the US economy is intact.

But manufacturing growth has slowed and lagging business investment has become a drag. Globally, flagging trade flows have pushed the German economy toward recession, and dampened growth in China.

A slowdown would be bad news for Trump, who is building his 2020 bid for a second term around the economy's performance. He told voters at a rally last week they had "no choice" but to vote for him to preserve their jobs and investments.

Despite talking up the economy, the president and his advisers have repeatedly accused the Fed of undermining the administration's economic policies. On Sunday, Kudlow again pointed the finger at the central bank, describing rate hikes through 2017 and 2018 as "very severe monetary restraint."

The Fed hiked rates seven times over those two years as part of a plan to restore normal monetary policy following the emergency steps taken to battle the 2007-2009 global financial crisis and recession.

Even with those steps, the Fed's target interest rate has remained well below historic norms, and policymakers have started cutting rates in response to growing global risks.

Democratic presidential candidates on Sunday joined the many economic analysts who have said the administration's sometimes erratic policies on trade -- at one point threatening tariffs on Mexico over immigration issues -- are to blame for increased uncertainty, disappointing business investment and market volatility.

“I’m afraid that this president is driving the global economy and our economy into recession," Democratic candidate Beto O’Rourke said on NBC's "Meet the Press."

Speaking to CNN's "State of the Union" on Sunday, Democratic South Bend, Indiana Mayor Pete Buttigieg criticized the administration for failing to deliver a deal with China.

"There is clearly no strategy for dealing with the trade war in a way that will lead to results for American farmers, or American consumers," he said.

White House officials pushed back on Sunday against concerns that economic growth may be faltering, saying they saw little risk of recession despite a volatile week on global bond markets, and insisting their trade war with China was doing no damage to the United States.

White House officials pushed back on Sunday against concerns that economic growth may be faltering, saying they saw little risk of recession despite a volatile week on global bond markets, and insisting their trade war with China was doing no damage to the United States. Trump administration economic adviser Larry Kudlow said trade deputies from the two countries would speak within 10 days and "if those deputies meetings pan out...we are planning to have China come to the USA" to advance negotiations over ending a trade battle that has emerged as a potential risk to global economic growth. But even with the stalks stalled for now and the threat of greater tariffs and other trade restrictions hanging over the world economy, Kudlow said on "Fox News Sunday" the United States remained "in pretty good shape." "There is no recession in sight," Kudlow said. "Consumers are working. Their wages are rising. They are spending and they are saving." His comments follow a rocky week in which concerns about a possible US recession began to drive financial markets and seemed to put administration officials on edge about whether the economy would hold up through the 2020 presidential election campaign. Democrats on Sunday argued Trump's trade policies are now posing an acute, short-term risk. US stock markets tanked last week on recession fears with all three major US indexes closing down about 3% on Wednesday only to pair their losses by Friday due to expectations the European Central Bank might cut rates. The Fed and 19 other central banks have already loosened monetary policy in what Fitch Ratings last week described as the largest shift since the 2009 recession. Markets are expecting even more cuts to come. For a brief time last week bond investors demanded a higher interest rate on 2-year Treasury bonds than for 10-year Treasury bonds, a potential signal of lost faith in near-term economic growth. Much of the uncertainty surrounds prospects for a resolution of the trade tensions between the United States and China. The administration last week delayed the imposition of some of its planned tariffs to avoid disrupting the upcoming Christmas shopping season. President Donald Trump told reporters he had a call with China’s President Xi Jinping scheduled soon. It had not taken place as of Saturday night. Trade adviser Peter Navarro on Sunday dismissed last week's market volatility as any sort of warning sign, saying "good" economic dynamics were encouraging investors to move money to the United States. "We have the strongest economy in the world and money is coming here for our stock market. It's also coming here to chase yield in our bond markets," Navarro told ABC's "This Week." For bond markets, the sort of movement Navarro described is often driven by trouble - in this case the possibility that the trade battle with China is lasting far longer than expected and becoming disruptive to business investment and growth. Still, Navarro said the tariffs on Chinese goods, "are not hurting anybody here." The US economy does continue to grow and add jobs each month. Retail sales in July jumped a stronger-than-expected 0.7%, the government reported last week, and Kudlow said that number showed that the main prop of the US economy is intact. But manufacturing growth has slowed and lagging business investment has become a drag. Globally, flagging trade flows have pushed the German economy toward recession, and dampened growth in China. A slowdown would be bad news for Trump, who is building his 2020 bid for a second term around the economy's performance. He told voters at a rally last week they had "no choice" but to vote for him to preserve their jobs and investments. Despite talking up the economy, the president and his advisers have repeatedly accused the Fed of undermining the administration's economic policies. On Sunday, Kudlow again pointed the finger at the central bank, describing rate hikes through 2017 and 2018 as "very severe monetary restraint." The Fed hiked rates seven times over those two years as part of a plan to restore normal monetary policy following the emergency steps taken to battle the 2007-2009 global financial crisis and recession. Even with those steps, the Fed's target interest rate has remained well below historic norms, and policymakers have started cutting rates in response to growing global risks. Democratic presidential candidates on Sunday joined the many economic analysts who have said the administration's sometimes erratic policies on trade -- at one point threatening tariffs on Mexico over immigration issues -- are to blame for increased uncertainty, disappointing business investment and market volatility. “I’m afraid that this president is driving the global economy and our economy into recession," Democratic candidate Beto O’Rourke said on NBC's "Meet the Press." Speaking to CNN's "State of the Union" on Sunday, Democratic South Bend, Indiana Mayor Pete Buttigieg criticized the administration for failing to deliver a deal with China. "There is clearly no strategy for dealing with the trade war in a way that will lead to results for American farmers, or American consumers," he said.

White House says no recession in sight, pushes China trade talks

Police in Southeast China's Fujian province have launched an investigation after a FedEx parcel sent from the United States was found to contain a handgun, the latest Chinese-related problem to affect the US&nbsp;package delivery firm.

Amid tense Sino-US&nbsp;relations, Memphis-based FedEx is already facing scrutiny in China on suspicion it illegally held back more than 100 Huawei packages after Washington in May placed the Chinese telecoms giant on a blacklist that effectively blocks US firms from doing business with it.

Police in the Jin'an district of Fuzhou, the capital of Fujian, said on Sunday on Weibo, a micro-blogging platform similar to Twitter, that an unidentified sporting goods company had received the parcel sent from a US customer via FedEx.

"Inside was a gun," the Jin'an police said on their official Weibo account. "At the present time, the Fuzhou police have already impounded the gun and started an investigation into the case."

FedEx, which has apologised for multiple incidents of Huawei packages being diverted, did not immediately respond to a request for comment on the Fuzhou incident outside of normal business hours.

Police in Southeast China's Fujian province have launched an investigation after a FedEx parcel sent from the United States was found to contain a handgun, the latest Chinese-related problem to affect the US package delivery firm.

Police in Southeast China's Fujian province have launched an investigation after a FedEx parcel sent from the United States was found to contain a handgun, the latest Chinese-related problem to affect the US package delivery firm. Amid tense Sino-US relations, Memphis-based FedEx is already facing scrutiny in China on suspicion it illegally held back more than 100 Huawei packages after Washington in May placed the Chinese telecoms giant on a blacklist that effectively blocks US firms from doing business with it. Police in the Jin'an district of Fuzhou, the capital of Fujian, said on Sunday on Weibo, a micro-blogging platform similar to Twitter, that an unidentified sporting goods company had received the parcel sent from a US customer via FedEx. "Inside was a gun," the Jin'an police said on their official Weibo account. "At the present time, the Fuzhou police have already impounded the gun and started an investigation into the case." FedEx, which has apologised for multiple incidents of Huawei packages being diverted, did not immediately respond to a request for comment on the Fuzhou incident outside of normal business hours.

Chinese police investigate FedEx package containing handgun

Chinese factory price inflation fell below zero for the first time in three years, official data showed Friday, the latest sign of weakening demand amid mounting trade tensions with the US.

The producer price index (PPI) -- an important barometer of the industrial sector that measures the cost of goods at the factory gate -- dropped 0.3 per cent year-on-year in July, down from zero per cent in June, according to the National Bureau of Statistics (NBS).

A slowdown in factory gate inflation reflects sluggish demand, while a turn to deflation could dent corporate profits and drag on the world's number two economy, which in turn could lead to a drop in prices globally.

The reading marks the first deflation since August 2016, and fell short of the -0.1 per cent forecast in a Bloomberg News survey.

The petroleum and natural gas mining sector led the drop, while a contraction in petroleum, coal and other fuel processing also widened, NBS official Dong Yaxiu said in a statement.

"The profitability for industrial firms will take a hit and the broader outlook will continue to slump," said Edward Moya, analyst at OANDA.

Additional monetary loosening is expected as the central People's Bank of China will put more weight on tackling factory-gate deflation, Julian Evans-Pritchard of Capital Economics wrote in a research note.

China's consumer price index (CPI) -- a gauge of retail inflation -- rose 2.8 per cent, up from 2.7 per cent in May, marking the fastest pace since February 2018.

Pork prices rose as supply was "slightly shortened" by the African swine fever epidemic while hot summer weather has led to decreased production in eggs, thus driving prices higher, according to Dong.

Chinese and US negotiators met in Shanghai in July in a bid to patch up the trade rift hurting the world's top two economies.&nbsp;

But tensions have mounted rapidly since then, as US President Donald Trump vowed to impose fresh tariffs on $300 billion in Chinese goods from September 1.

Chinese factory price inflation fell below zero for the first time in three years, official data showed Friday, the latest sign of weakening demand amid mounting trade tensions with the US.

Chinese factory price inflation fell below zero for the first time in three years, official data showed Friday, the latest sign of weakening demand amid mounting trade tensions with the US. The producer price index (PPI) -- an important barometer of the industrial sector that measures the cost of goods at the factory gate -- dropped 0.3 per cent year-on-year in July, down from zero per cent in June, according to the National Bureau of Statistics (NBS). A slowdown in factory gate inflation reflects sluggish demand, while a turn to deflation could dent corporate profits and drag on the world's number two economy, which in turn could lead to a drop in prices globally. The reading marks the first deflation since August 2016, and fell short of the -0.1 per cent forecast in a Bloomberg News survey. The petroleum and natural gas mining sector led the drop, while a contraction in petroleum, coal and other fuel processing also widened, NBS official Dong Yaxiu said in a statement. "The profitability for industrial firms will take a hit and the broader outlook will continue to slump," said Edward Moya, analyst at OANDA. Additional monetary loosening is expected as the central People's Bank of China will put more weight on tackling factory-gate deflation, Julian Evans-Pritchard of Capital Economics wrote in a research note. China's consumer price index (CPI) -- a gauge of retail inflation -- rose 2.8 per cent, up from 2.7 per cent in May, marking the fastest pace since February 2018. Pork prices rose as supply was "slightly shortened" by the African swine fever epidemic while hot summer weather has led to decreased production in eggs, thus driving prices higher, according to Dong. Chinese and US negotiators met in Shanghai in July in a bid to patch up the trade rift hurting the world's top two economies. But tensions have mounted rapidly since then, as US President Donald Trump vowed to impose fresh tariffs on $300 billion in Chinese goods from September 1.

China factory price deflates as demand weakens

Weaponising Yuan: Beijing's double-edged sword

<a href="https://www.wionews.com/business-%26-economy/gold-prices-slip-for-sixth-session-as-dollar-trades-near-1-year-high-153068">Gold prices</a> firmed on Tuesday ahead of a meeting of the <a href="https://www.wionews.com/business-economy/nasdaq-ends-at-record-high-dollar-falls-as-us-fed-signals-possible-rate-cut-234814">US Federal Reserve</a> where it is expected to signal how big an interest rate cut the world's biggest economy could take.

Spot gold was up 0.1 per cent to1,427.85 dollars per ounce as of 0954 GMT. US gold futures were up 0.6 per cent at1,428.30 dollars per ounce.

"The big question is what the tone of the Fed will be tomorrow. Interest rates are overwhelmingly likely to be cut. It's just a question of by how much," said Mitsubishi analyst Jonathan Butler.&nbsp;

"Gold is still at 6-year highs. Although it has been close to1,450 dollars recently, it seems to have found a level around1,425 dollars."

Investors awaited cues on the Fed's two-day monetary policy meeting beginning later in the session, which is expected to result in a 25-basis point cut in interest rates. If implemented, it would be the central bank's first rate cut in a decade.

The bank would be joining peers such as the European Central Bank in signalling the need for rate cuts. The <a href="https://www.wionews.com/business-economy/asia-stocks-higher-ahead-of-fed-pound-pressured-by-fresh-brexit-pain-239341">Bank of Japan</a> has also said it would ease "without hesitation" if the economy lost momentum in order to achieve its inflation target.

Gains in the dollar index, which touched a two-month high of 98.206 on the back of a weaker sterling, helped cap the rise in bullion.

"Liquidity is still thin as traders seem to be holding back before the Fed gives its views on monetary policy," said Benjamin Lu, an analyst at Phillip Futures, adding that a firm dollar was putting pressure on gold prices.&nbsp;

US-China trade negotiations, which begin in Shanghai on Tuesday, were also in the spotlight, although expectations for progress during the two-day meeting are low, with the markets hoping the two sides can at least detail commitments for goodwill gestures.&nbsp;

On the technical side, spot gold remains neutral in a range of 1,412-1,427 dollars per ounce, and an escape could suggest a direction, according to Reuters technical analyst Wang Tao.&nbsp;

Holdings of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, rose 0.83 per cent to 824.89 tonnes on Monday from Friday.

Among other precious metals, silver rose 0.2 per cent to16.49 dollars, while platinum edged 0.2 per cent higher to 877.29dollars.

Palladium dropped 0.5 per cent to1,545.31 dollars per ounce, after touching a near two-week high in the previous session.

Gold prices firmed on Tuesday ahead of a meeting of the US Federal Reserve where it is expected to signal how big an interest rate cut the world's biggest economy could take.

Gold prices firmed on Tuesday ahead of a meeting of the US Federal Reserve where it is expected to signal how big an interest rate cut the world's biggest economy could take. Spot gold was up 0.1 per cent to1,427.85 dollars per ounce as of 0954 GMT. US gold futures were up 0.6 per cent at1,428.30 dollars per ounce. "The big question is what the tone of the Fed will be tomorrow. Interest rates are overwhelmingly likely to be cut. It's just a question of by how much," said Mitsubishi analyst Jonathan Butler. "Gold is still at 6-year highs. Although it has been close to1,450 dollars recently, it seems to have found a level around1,425 dollars." Investors awaited cues on the Fed's two-day monetary policy meeting beginning later in the session, which is expected to result in a 25-basis point cut in interest rates. If implemented, it would be the central bank's first rate cut in a decade. The bank would be joining peers such as the European Central Bank in signalling the need for rate cuts. The Bank of Japan has also said it would ease "without hesitation" if the economy lost momentum in order to achieve its inflation target. Gains in the dollar index, which touched a two-month high of 98.206 on the back of a weaker sterling, helped cap the rise in bullion. "Liquidity is still thin as traders seem to be holding back before the Fed gives its views on monetary policy," said Benjamin Lu, an analyst at Phillip Futures, adding that a firm dollar was putting pressure on gold prices. US-China trade negotiations, which begin in Shanghai on Tuesday, were also in the spotlight, although expectations for progress during the two-day meeting are low, with the markets hoping the two sides can at least detail commitments for goodwill gestures. On the technical side, spot gold remains neutral in a range of 1,412-1,427 dollars per ounce, and an escape could suggest a direction, according to Reuters technical analyst Wang Tao. Holdings of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, rose 0.83 per cent to 824.89 tonnes on Monday from Friday. Among other precious metals, silver rose 0.2 per cent to16.49 dollars, while platinum edged 0.2 per cent higher to 877.29dollars. Palladium dropped 0.5 per cent to1,545.31 dollars per ounce, after touching a near two-week high in the previous session.

Gold firms ahead of expected Federal interest rate cut

US President Donald Trump ripped into China on Tuesday after <a href="https://www.wionews.com/world/china-us-trade-talks-to-restart-after-g20-tariff-truce-239483">US negotiators arrived in Shanghai </a>to resurrect talks aimed at ending a year-long trade war between the world's two top economies.

Trump took to Twitter to slam China hours after top US officials landed in the financial hub for the first face-to-face discussions since the US leader agreed to a trade war truce with Chinese President Xi Jinping in June.

"My team is negotiating with them now, but they always change the deal in the end to their benefit," Trump tweeted.

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..My team is negotiating with them now, but they always change the deal in the end to their benefit. They should probably wait out our Election to see if we get one of the Democrat stiffs like Sleepy Joe. Then they could make a GREAT deal, like in past 30 years, and continue
— Donald J. Trump (@realDonaldTrump) <a href="https://twitter.com/realDonaldTrump/status/1156160004132675584?ref_src=twsrc%5Etfw">July 30, 2019</a></blockquote>
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Trump had accused China of reneging on its commitments before previous talks broke down in May.&nbsp;

This time the US leader said Beijing was supposed to start buying US agricultural products but they have shown "no signs that they are doing so".

"That is the problem with China, they just don't come through," he said.

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China is doing very badly, worst year in 27 - was supposed to start buying our agricultural product now - no signs that they are doing so. That is the problem with China, they just don’t come through. Our Economy has become MUCH larger than the Chinese Economy is last 3 years....
— Donald J. Trump (@realDonaldTrump) <a href="https://twitter.com/realDonaldTrump/status/1156159999833513984?ref_src=twsrc%5Etfw">July 30, 2019</a></blockquote>
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Washington and Beijing have so far hit each other with punitive tariffs covering more than $360 billion in two-way trade, in a tense stand-off centred on demands for China to curb the alleged theft of American technology and provide a level playing field to US companies.

<a href="https://www.wionews.com/world/us-trade-negotiators-will-travel-to-china-in-very-near-future-official-235396">US Trade Representative Robert Lighthizer </a>and Treasury Secretary Steven Mnuchin did not talk to reporters after arriving in the Chinese financial hub on Tuesday.&nbsp;

A motorcade believed to be carrying the US officials later headed to the city's famous Peace hotel, where they were expected to meet Chinese officials for dinner.

The US officials are due to hold formal talks with Vice Premier Liu He on Wednesday.

Trump's Twitter tirade will reinforce already low expectations that this week's negotiations will lead to a major breakthrough.

US election gambit

Trump said last week he believed Beijing was hoping to delay a deal until after the US presidential election in November 2020, and on Tuesday the Republican said China could wait to see if a Democratic opponent wins the vote and "continue to ripoff the USA".

"The problem with them waiting, however, is that if &amp; when I win, the deal that they get will be much tougher than what we are negotiating now...or no deal at all," he said.

"We have all the cards, our past leaders never got it!"

Days before the Shanghai meeting, Trump threatened to pull recognition of China's developing nation status at the World Trade Organization -- prompting an irritable reply from Beijing about the "arrogance and selfishness" of the US.

The US leader has also angered the Chinese side by claiming the slowing economy is forcing them to make a trade deal, and blacklisting telecom giant Huawei over national security concerns.

In a commentary on Tuesday, state news agency Xinhua admitted relations were "strained" and called for the US to "treat China with due respect if it wants a trade deal".

New city

Holding talks in Shanghai instead of Beijing was seen as a nod to a time of better relations, as the city was the home of the 1972 Shanghai Communique -- an important step in building diplomatic relations between the US and China.

Chinese Commerce Minister Zhong Shan, who is seen as a tough negotiator, is expected to join Liu on the Chinese side.

But both sides were busy lowering expectations in the run-up to talks.&nbsp;

Mnuchin told CNBC last week there were still "a lot of issues" while Chinese state-run daily The Global Times wrote that it is "widely believed that trade talks will take a long time".

There was no sign of the rhetoric letting up either, with the China Daily newspaper's Tuesday editorial saying "the US should give its go-to tactic of maximum pressure a couple of days off as it has proven ineffective against China".

It pointed to an announcement at the weekend that China would buy more US agricultural products including pork, cotton and soybean as a sign of China's "goodwill" -- and called for the US to "reciprocate if it wants any progress to be made".

US President Donald Trump ripped into China on Tuesday after US negotiators arrived in Shanghai to resurrect talks aimed at ending a year-long trade war between the world's two top economies.

US President Donald Trump ripped into China on Tuesday after US negotiators arrived in Shanghai to resurrect talks aimed at ending a year-long trade war between the world's two top economies. Trump took to Twitter to slam China hours after top US officials landed in the financial hub for the first face-to-face discussions since the US leader agreed to a trade war truce with Chinese President Xi Jinping in June. "My team is negotiating with them now, but they always change the deal in the end to their benefit," Trump tweeted. ..My team is negotiating with them now, but they always change the deal in the end to their benefit. They should probably wait out our Election to see if we get one of the Democrat stiffs like Sleepy Joe. Then they could make a GREAT deal, like in past 30 years, and continue — Donald J. Trump (@realDonaldTrump) July 30, 2019 × Trump had accused China of reneging on its commitments before previous talks broke down in May. This time the US leader said Beijing was supposed to start buying US agricultural products but they have shown "no signs that they are doing so". "That is the problem with China, they just don't come through," he said. China is doing very badly, worst year in 27 - was supposed to start buying our agricultural product now - no signs that they are doing so. That is the problem with China, they just don’t come through. Our Economy has become MUCH larger than the Chinese Economy is last 3 years.... — Donald J. Trump (@realDonaldTrump) July 30, 2019 × Washington and Beijing have so far hit each other with punitive tariffs covering more than $360 billion in two-way trade, in a tense stand-off centred on demands for China to curb the alleged theft of American technology and provide a level playing field to US companies. US Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin did not talk to reporters after arriving in the Chinese financial hub on Tuesday. A motorcade believed to be carrying the US officials later headed to the city's famous Peace hotel, where they were expected to meet Chinese officials for dinner. The US officials are due to hold formal talks with Vice Premier Liu He on Wednesday. Trump's Twitter tirade will reinforce already low expectations that this week's negotiations will lead to a major breakthrough. US election gambit Trump said last week he believed Beijing was hoping to delay a deal until after the US presidential election in November 2020, and on Tuesday the Republican said China could wait to see if a Democratic opponent wins the vote and "continue to ripoff the USA". "The problem with them waiting, however, is that if & when I win, the deal that they get will be much tougher than what we are negotiating now...or no deal at all," he said. "We have all the cards, our past leaders never got it!" Days before the Shanghai meeting, Trump threatened to pull recognition of China's developing nation status at the World Trade Organization -- prompting an irritable reply from Beijing about the "arrogance and selfishness" of the US. The US leader has also angered the Chinese side by claiming the slowing economy is forcing them to make a trade deal, and blacklisting telecom giant Huawei over national security concerns. In a commentary on Tuesday, state news agency Xinhua admitted relations were "strained" and called for the US to "treat China with due respect if it wants a trade deal". New city Holding talks in Shanghai instead of Beijing was seen as a nod to a time of better relations, as the city was the home of the 1972 Shanghai Communique -- an important step in building diplomatic relations between the US and China. Chinese Commerce Minister Zhong Shan, who is seen as a tough negotiator, is expected to join Liu on the Chinese side. But both sides were busy lowering expectations in the run-up to talks. Mnuchin told CNBC last week there were still "a lot of issues" while Chinese state-run daily The Global Times wrote that it is "widely believed that trade talks will take a long time". There was no sign of the rhetoric letting up either, with the China Daily newspaper's Tuesday editorial saying "the US should give its go-to tactic of maximum pressure a couple of days off as it has proven ineffective against China". It pointed to an announcement at the weekend that China would buy more US agricultural products including pork, cotton and soybean as a sign of China's "goodwill" -- and called for the US to "reciprocate if it wants any progress to be made".

Donald Trump tears into China on Twitter as trade talks resume

China outlined plans to build a modern, high-tech army in a<a href="https://www.wionews.com/world/us-thaad-system-deployment-to-south-korea-undermines-regional-strategic-balance-says-china-238130"> national defence plan</a> published Wednesday, as it accused Washington of undermining global strategic stability and warned against Taiwanese independence.

The first comprehensive white paper since 2012 offers insight into the world's largest army as it scrambles to catch up to America's formidable firepower as tensions deepen between the two powers.

Beijing is firm on the self-ruled <a href="https://www.wionews.com/world/china-to-impose-sanctions-on-us-firms-in-taiwan-arms-sale-235357">island of Taiwan</a> -- which China views as its own territory -- and makes "no promise to renounce the use of force" in bringing it back into the fold.

"China must be and will be reunited," the paper reads.

It says Taiwan "separatists" are the biggest threat to the peaceful reunification of the country.

"The PLA will resolutely defeat anyone attempting to separate Taiwan from China," it says.

"This hostile signalling of resolve may backfire within Taiwan by exacerbating anxieties that are already heightened by the clear failures of the model of 'one country, two systems' in Hong Kong," Kania said.

"The United States is clearly the intended audience for this signalling of red lines as well."

Watch Video:

<div class="videoWrapper trancodeVideo"><iframe src="https://www.wionews.com/videos/gravitastaiwan-a-us-china-flashpoint-236522/embed" width="560" height="350" style="width:100%;max-width:560px;" class="includeVideo" frameborder="0" autoplay=1 allowfullscreen></iframe></div>

The Mainland Affairs Council, Taiwan's top policy-making body on China, slammed the white paper for making "absurd remarks".

"We firmly oppose and condemn Beijing authorities for using cross-strait issues as a pretext for military expansion and threatening to use force against Taiwan," it said in a statement.

And with pro-democracy protests raging in Hong Kong, China's defence ministry spokesman Wu Qian cited a law stipulating that the PLA could be deployed to maintain public order if requested by the city's semi-autonomous government.

"International strategic competition is on the rise," the document says, adding that the United States has adjusted its national security and defence strategies and adopted "unilateral policies".

The US "has provoked and intensified competition among major countries, significantly increased its defence expenditure, pushed for additional capacity in nuclear, outer space, cyber and missile defence, and undermined global strategic stability".

The plan calls for more cutting-edge technology in the People's Liberation Army (PLA) arsenal, admitting it "still lags far behind the world's leading militaries".

War is evolving towards "intelligent" combat, the paper says, citing a growing use of AI, big data, cloud computing and "new and high-tech military technologies based on IT".

China's defence spending is second only to the United States, and it said earlier this year it planned to raise it by 7.5 per cent in 2019, though the increase in expenditure has slowed as the economy has cooled in recent years.

The PLA has been focused on catching up with technology used by armed forces in the US and western Europe, and is reportedly building a third aircraft carrier as well as developing a new generation of destroyer vessels, stealth fighter jets and ballistic missiles.

The US-China trade war is pushing Beijing to ramp up efforts to develop its own technological innovations, which would benefit the PLA, said Lyle Morris, senior policy analyst at the RAND Corporation think tank.

"The PLA still lags behind the US military in most indicators of technological superiority, but is closing the gap fast," Morris said. 
&nbsp;

China outlined plans to build a modern, high-tech army in a national defence plan published Wednesday, as it accused Washington of undermining global strategic stability and warned against Taiwanese independence.

China outlined plans to build a modern, high-tech army in a national defence plan published Wednesday, as it accused Washington of undermining global strategic stability and warned against Taiwanese independence. The first comprehensive white paper since 2012 offers insight into the world's largest army as it scrambles to catch up to America's formidable firepower as tensions deepen between the two powers. Beijing is firm on the self-ruled island of Taiwan -- which China views as its own territory -- and makes "no promise to renounce the use of force" in bringing it back into the fold. "China must be and will be reunited," the paper reads. It says Taiwan "separatists" are the biggest threat to the peaceful reunification of the country. "The PLA will resolutely defeat anyone attempting to separate Taiwan from China," it says. "This hostile signalling of resolve may backfire within Taiwan by exacerbating anxieties that are already heightened by the clear failures of the model of 'one country, two systems' in Hong Kong," Kania said. "The United States is clearly the intended audience for this signalling of red lines as well." Watch Video: The Mainland Affairs Council, Taiwan's top policy-making body on China, slammed the white paper for making "absurd remarks". "We firmly oppose and condemn Beijing authorities for using cross-strait issues as a pretext for military expansion and threatening to use force against Taiwan," it said in a statement. And with pro-democracy protests raging in Hong Kong, China's defence ministry spokesman Wu Qian cited a law stipulating that the PLA could be deployed to maintain public order if requested by the city's semi-autonomous government. "International strategic competition is on the rise," the document says, adding that the United States has adjusted its national security and defence strategies and adopted "unilateral policies". The US "has provoked and intensified competition among major countries, significantly increased its defence expenditure, pushed for additional capacity in nuclear, outer space, cyber and missile defence, and undermined global strategic stability". The plan calls for more cutting-edge technology in the People's Liberation Army (PLA) arsenal, admitting it "still lags far behind the world's leading militaries". War is evolving towards "intelligent" combat, the paper says, citing a growing use of AI, big data, cloud computing and "new and high-tech military technologies based on IT". China's defence spending is second only to the United States, and it said earlier this year it planned to raise it by 7.5 per cent in 2019, though the increase in expenditure has slowed as the economy has cooled in recent years. The PLA has been focused on catching up with technology used by armed forces in the US and western Europe, and is reportedly building a third aircraft carrier as well as developing a new generation of destroyer vessels, stealth fighter jets and ballistic missiles. The US-China trade war is pushing Beijing to ramp up efforts to develop its own technological innovations, which would benefit the PLA, said Lyle Morris, senior policy analyst at the RAND Corporation think tank. "The PLA still lags behind the US military in most indicators of technological superiority, but is closing the gap fast," Morris said.

China will be reunited, PLA will defeat anyone attempting to separate Taiwan: National defence plan

US President Donald Trump on Monday praised Beijing's handling of pro-democracy protests in Hong Kong, a day after suspected triad gangsters attacked demonstrators in a bloody escalation.

Hong Kong has been plunged into its worst crisis in recent history by weeks of marches, which drew millions, and sporadic violent confrontations between police and pockets of hardcore protesters.

The demonstrations have evolved into a call for democratic reforms, universal suffrage and a halt to sliding freedoms which China had promised to respect in the semi-autonomous territory after its handover from Britain in 1997.

"I know that's a very important situation for President Xi" Jinping of China, Trump said during a White House meeting with Pakistan's Prime Minister Imran Khan.

When a reporter suggested that the Hong Kong and Chinese governments were ignoring violence against the protesters, Trump replied that "I think it's been relatively nonviolent."

Hospital authorities said 45 people were wounded in the attack late Sunday which led to the arrest of six men, some of whom police alleged had triad gangster backgrounds.

"China could stop them if they wanted", Trump said of the protests.&nbsp;

"I'm not involved in it very much but I think President Xi of China has acted responsibly, very responsibly," said Trump, who last year began a trade war with China that has led to tariffs on hundreds of billions of dollars in mutual trade, a dispute still unsettled.

After Sunday's violence critics accused Hong Kong police of responding too slowly.

"They've been out there protesting for a long time. I've never seen protests like it where you have that many people. It looks like two million people," Trump said.

"Those are big protests... I hope that President Xi will do the right thing, but it has been going on a long time, there's no question."

Hardcore protesters have stormed Hong Kong's legislature, and on Sunday some demonstrators targeted with eggs and graffiti China's representative office in the financial hub, which China's foreign ministry called "absolutely intolerable."

US President Donald Trump on Monday praised Beijing's handling of pro-democracy protests in Hong Kong, a day after suspected triad gangsters attacked demonstrators in a bloody escalation.

US President Donald Trump on Monday praised Beijing's handling of pro-democracy protests in Hong Kong, a day after suspected triad gangsters attacked demonstrators in a bloody escalation. Hong Kong has been plunged into its worst crisis in recent history by weeks of marches, which drew millions, and sporadic violent confrontations between police and pockets of hardcore protesters. The demonstrations have evolved into a call for democratic reforms, universal suffrage and a halt to sliding freedoms which China had promised to respect in the semi-autonomous territory after its handover from Britain in 1997. "I know that's a very important situation for President Xi" Jinping of China, Trump said during a White House meeting with Pakistan's Prime Minister Imran Khan. When a reporter suggested that the Hong Kong and Chinese governments were ignoring violence against the protesters, Trump replied that "I think it's been relatively nonviolent." Hospital authorities said 45 people were wounded in the attack late Sunday which led to the arrest of six men, some of whom police alleged had triad gangster backgrounds. "China could stop them if they wanted", Trump said of the protests. "I'm not involved in it very much but I think President Xi of China has acted responsibly, very responsibly," said Trump, who last year began a trade war with China that has led to tariffs on hundreds of billions of dollars in mutual trade, a dispute still unsettled. After Sunday's violence critics accused Hong Kong police of responding too slowly. "They've been out there protesting for a long time. I've never seen protests like it where you have that many people. It looks like two million people," Trump said. "Those are big protests... I hope that President Xi will do the right thing, but it has been going on a long time, there's no question." Hardcore protesters have stormed Hong Kong's legislature, and on Sunday some demonstrators targeted with eggs and graffiti China's representative office in the financial hub, which China's foreign ministry called "absolutely intolerable."

Donald Trump praises China response to Hong Kong protests

US President Donald Trump on Thursday accused China of backsliding on promises to increase purchases of American farm exports.

The president's latest salvo on Twitter comes the same week that <a href="https://www.wionews.com/world/after-trump-xi-g20-meeting-us-china-resume-talks-to-resolve-trade-war-234508">US and Chinese trade officials</a> had their first contact in months in an effort to revive negotiations that nearly collapsed in May.

Trump and his Chinese counterpart Xi Jinping met last month on the sidelines of the Group of 20 summit&nbsp;in Japan, agreeing to cease further hostilities while the talks resumed.

"Mexico is doing great at the Border, but <a href="https://www.wionews.com/world/chinas-2019-growth-seen-slowing-to-62-per-cent-as-trade-war-weighs-reuters-poll-234697">China</a> is letting us down in that they have not been buying the agricultural products from our great Farmers that they said they would," Trump said Thursday on Twitter.&nbsp;

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<blockquote class="twitter-tweet" data-lang="en">
Mexico is doing great at the Border, but China is letting us down in that they have not been buying the agricultural products from our great Farmers that they said they would. Hopefully they will start soon!
— Donald J. Trump (@realDonaldTrump) <a href="https://twitter.com/realDonaldTrump/status/1149318492711264257?ref_src=twsrc%5Etfw">July 11, 2019</a></blockquote>
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"Hopefully they will start soon!"

Following the Osaka summit, Trump announced that, in return for Washington's pledge to suspend a planned tariff increase on $300 billion in Chinese imports, Beijing had offered to buy "a tremendous amount of food and agriculture product" from the United States.

Hopes for a trade deal with China have lifted spirits on Wall Street but lingering trade conflicts have weighed on US business sentiment and are one of the main dangers on the horizon for the United States, economists say.

Reducing America's soaring trade deficit with China has long been a principal aim in Trump's trade battle with Beijing, which he also accuses of stealing American technology and unfairly intervening in markets.

Since last year, the two countries have traded tariffs on more than $360 billion in two-way trade.

The US global trade deficit has expanded this year but has fallen with China while rising with Mexico, pointing to the realignment of commercial relationships.

Trump has offered billions in aid to buy out US farms badly damaged in the US-China trade war. US soy exports collapsed last year, virtually wiping out foreign markets farmers had spent years cultivating.

Bill Nelson, an analyst at Doane Advisory Services, told AFP the major Chinese purchases that markets had been expecting had so far failed to materialize.

Chinese soybean purchases zoomed higher in the first quarter of the year to 9.5 million tons, according to official numbers, making up for the sales drought at the end of 2018.

But they have since fallen off sharply, with few major sales recorded since the end of last month.

"China is not making major purchases, certainly not since the Xi meeting," Nelson said.&nbsp;

"Trump implied China would be immediately out there and sales would be going to happen right away. This is not what has occurred."

US President Donald Trump on Thursday accused China of backsliding on promises to increase purchases of American farm exports. The president's latest salvo on Twitter comes the same week that US and Chinese trade officials had their first contact in months in an effort to revive negotiations that nearly collapsed in May.

US President Donald Trump on Thursday accused China of backsliding on promises to increase purchases of American farm exports. The president's latest salvo on Twitter comes the same week that US and Chinese trade officials had their first contact in months in an effort to revive negotiations that nearly collapsed in May. Trump and his Chinese counterpart Xi Jinping met last month on the sidelines of the Group of 20 summit in Japan, agreeing to cease further hostilities while the talks resumed. "Mexico is doing great at the Border, but China is letting us down in that they have not been buying the agricultural products from our great Farmers that they said they would," Trump said Thursday on Twitter. Mexico is doing great at the Border, but China is letting us down in that they have not been buying the agricultural products from our great Farmers that they said they would. Hopefully they will start soon! — Donald J. Trump (@realDonaldTrump) July 11, 2019 × "Hopefully they will start soon!" Following the Osaka summit, Trump announced that, in return for Washington's pledge to suspend a planned tariff increase on $300 billion in Chinese imports, Beijing had offered to buy "a tremendous amount of food and agriculture product" from the United States. Hopes for a trade deal with China have lifted spirits on Wall Street but lingering trade conflicts have weighed on US business sentiment and are one of the main dangers on the horizon for the United States, economists say. Reducing America's soaring trade deficit with China has long been a principal aim in Trump's trade battle with Beijing, which he also accuses of stealing American technology and unfairly intervening in markets. Since last year, the two countries have traded tariffs on more than $360 billion in two-way trade. The US global trade deficit has expanded this year but has fallen with China while rising with Mexico, pointing to the realignment of commercial relationships. Trump has offered billions in aid to buy out US farms badly damaged in the US-China trade war. US soy exports collapsed last year, virtually wiping out foreign markets farmers had spent years cultivating. Bill Nelson, an analyst at Doane Advisory Services, told AFP the major Chinese purchases that markets had been expecting had so far failed to materialize. Chinese soybean purchases zoomed higher in the first quarter of the year to 9.5 million tons, according to official numbers, making up for the sales drought at the end of 2018. But they have since fallen off sharply, with few major sales recorded since the end of last month. "China is not making major purchases, certainly not since the Xi meeting," Nelson said. "Trump implied China would be immediately out there and sales would be going to happen right away. This is not what has occurred."

China fails to buy agricultural goods as promised: Donald Trump

The United States and China have reached a truce in their escalating trade war. Following a meeting between US president, Donald Trump and his Chinese counterpart, Xi Jinping at the G20, the two leaders agreed to renew talks. Tariffs, which began to be introduced by both sides on an array of imports in 2018, will not be raised further.

But a number of tariffs remain and trade relations are still far from normal between the world’s two largest economies. This may not be a cold war. But it is a great power rivalry focusing on technological supremacy and which side has the best development model.

China’s economy is slowing down and recent tariffs from the US on its exports have not helped. China’s growth rate declined from 6.6 per cent&nbsp;in 2018 to 6.4 per cent in the first quarter of 2019. But in the long term, the pressure exerted by Trump’s administration will strengthen China. It will help China speed up its efforts to restructure its economy, focus more on innovation, and also boost the country’s national pride.

Technological advancements are central to empire building and the rise of new powers, with steam power and then electronic technologies driving previous British and American empires. The fourth industrial revolution will shift international competition away from labour, territory, nuclear arms, and soft power to new technology including robotics, artificial intelligence (AI), and wireless services.

Wake up call

Until recently, US policymakers operated under the assumption that the US was the world’s technological superpower and Silicon Valley was the globe’s innovation hotbed. China was regarded as a copycat that builds clumsy clones of American technologies or uses its big state-owned enterprises to purchase innovative US companies and absorb their intellectual property and know-how.

But when it comes to 5G – the next generation of superfast internet technology – the US has lagged behind. No American company has comparable wireless equipment to Huawei. This spurred Trump to wage war on the Chinese tech company. First he declared a national emergency, banning sales and the use of telecoms equipment deemed to pose “unacceptable risks”. Then he lobbied allies to do the same.

US-based companies followed suit. First, Google removed Huawei from its Android service, then the Wi-Fi Alliance, Bluetooth, and others followed suit.

Huawei’s 5G capabilities and the fallout from them can be seen as China’s Sputnik moment. In the same way the Soviet Union was the first to launch a satellite into space, creating the appearance that the Soviets were winning the engineering challenge of the day, China is outpacing other countries in the development of 5G today. China realises the dangers of technological dependence, economic entanglement, and scientific reliance on the US.

Innovation revolution

Huawei is a product of the Chinese government’s industrial policy strategy. The vision to move up the economic value chain from a low-end manufacturer to a global innovation leader led to the launch of its Made In China 2025 initiative and an Artificial Intelligence Development Plan to channel resources into strategic sectors such as computing, AI, robotics, and aerospace.

China aims to achieve an AI self-sufficiency manufacturing rate of 80 per cent, minimising its dependence on other countries for the complex parts needed in this tech. It also aims to become a leading technology hub in AI by 2030. This is bearing fruit, as in 2017, 48 per cent of global AI funding was Chinese compared to 38% being American. Chinese AI company iFlyTek often beats Facebook, Alphabet’s DeepMind, and IBM’s Watson in competitions to process natural speech, even in its “second language” English.

China is now the world’s biggest producer of scientific research papers and Semantic Scholar, the academic search engine for scientific articles, suggests Chinese scholars have surpassed their US counterparts in producing AI papers.

So the Huawei ban and tariffs on Chinese goods will not slow China – they will stimulate its new innovation system and boost scientific research aimed at becoming more independent.

Domestic boost 
 
Another consequence will be an acceleration of China’s attempt to rebalance its economy away from external demand and investment towards domestic consumption. This started in 2008 with the global financial crisis and has become increasingly necessary as China’s middle class develops. Since then large-scale government-led infrastructure investments, measures to increase household income, reductions of income tax, and improvements to social welfare systems have helped grow domestic consumption.

When Trump first announced tariffs in 2018, China’s domestic consumption was responsible for 76.2 per cent of its GDP growth, and the Chinese stock market absorbed the impact and bounced back after an initial sharp decline. Since then, the Chinese government has introduced new policies to boost domestic consumption further, including more tax cuts, improved childcare, and elderly care initiatives and incentives. So the trade war has helped China’s efforts to redistribute wealth and restructure its economy.

The trade war has also rallied the Chinese public around its government. US treatment of Chinese companies has been perceived as bullying and people have compared it to the way that the British Empire forced unfair trade practices on China in the 19th century. This topic is incredibly emotive in Chinese society and has boosted domestic support for the government.

The Chinese word for crisis is composed of two characters – one for danger and the other for opportunity. The country’s ability to capitalise on the current challenge from the US will strengthen it for years to come. 
 
(This article was originally published on The Conversation. Read the <a href="https://theconversation.com/us-china-trade-war-is-making-china-stronger-118852">original article)</a>

(Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL.)&nbsp;

 
&nbsp;

The United States and China have reached a truce in their escalating trade war. Following a meeting between US president, Donald Trump and his Chinese counterpart, Xi Jinping at the G20, the two leaders agreed to renew talks.

The United States and China have reached a truce in their escalating trade war. Following a meeting between US president, Donald Trump and his Chinese counterpart, Xi Jinping at the G20, the two leaders agreed to renew talks. Tariffs, which began to be introduced by both sides on an array of imports in 2018, will not be raised further. But a number of tariffs remain and trade relations are still far from normal between the world’s two largest economies. This may not be a cold war. But it is a great power rivalry focusing on technological supremacy and which side has the best development model. China’s economy is slowing down and recent tariffs from the US on its exports have not helped. China’s growth rate declined from 6.6 per cent in 2018 to 6.4 per cent in the first quarter of 2019. But in the long term, the pressure exerted by Trump’s administration will strengthen China. It will help China speed up its efforts to restructure its economy, focus more on innovation, and also boost the country’s national pride. Technological advancements are central to empire building and the rise of new powers, with steam power and then electronic technologies driving previous British and American empires. The fourth industrial revolution will shift international competition away from labour, territory, nuclear arms, and soft power to new technology including robotics, artificial intelligence (AI), and wireless services. Wake up call Until recently, US policymakers operated under the assumption that the US was the world’s technological superpower and Silicon Valley was the globe’s innovation hotbed. China was regarded as a copycat that builds clumsy clones of American technologies or uses its big state-owned enterprises to purchase innovative US companies and absorb their intellectual property and know-how. But when it comes to 5G – the next generation of superfast internet technology – the US has lagged behind. No American company has comparable wireless equipment to Huawei. This spurred Trump to wage war on the Chinese tech company. First he declared a national emergency, banning sales and the use of telecoms equipment deemed to pose “unacceptable risks”. Then he lobbied allies to do the same. US-based companies followed suit. First, Google removed Huawei from its Android service, then the Wi-Fi Alliance, Bluetooth, and others followed suit. Huawei’s 5G capabilities and the fallout from them can be seen as China’s Sputnik moment. In the same way the Soviet Union was the first to launch a satellite into space, creating the appearance that the Soviets were winning the engineering challenge of the day, China is outpacing other countries in the development of 5G today. China realises the dangers of technological dependence, economic entanglement, and scientific reliance on the US. Innovation revolution Huawei is a product of the Chinese government’s industrial policy strategy. The vision to move up the economic value chain from a low-end manufacturer to a global innovation leader led to the launch of its Made In China 2025 initiative and an Artificial Intelligence Development Plan to channel resources into strategic sectors such as computing, AI, robotics, and aerospace. China aims to achieve an AI self-sufficiency manufacturing rate of 80 per cent, minimising its dependence on other countries for the complex parts needed in this tech. It also aims to become a leading technology hub in AI by 2030. This is bearing fruit, as in 2017, 48 per cent of global AI funding was Chinese compared to 38% being American. Chinese AI company iFlyTek often beats Facebook, Alphabet’s DeepMind, and IBM’s Watson in competitions to process natural speech, even in its “second language” English. China is now the world’s biggest producer of scientific research papers and Semantic Scholar, the academic search engine for scientific articles, suggests Chinese scholars have surpassed their US counterparts in producing AI papers. So the Huawei ban and tariffs on Chinese goods will not slow China – they will stimulate its new innovation system and boost scientific research aimed at becoming more independent. Domestic boost Another consequence will be an acceleration of China’s attempt to rebalance its economy away from external demand and investment towards domestic consumption. This started in 2008 with the global financial crisis and has become increasingly necessary as China’s middle class develops. Since then large-scale government-led infrastructure investments, measures to increase household income, reductions of income tax, and improvements to social welfare systems have helped grow domestic consumption. When Trump first announced tariffs in 2018, China’s domestic consumption was responsible for 76.2 per cent of its GDP growth, and the Chinese stock market absorbed the impact and bounced back after an initial sharp decline. Since then, the Chinese government has introduced new policies to boost domestic consumption further, including more tax cuts, improved childcare, and elderly care initiatives and incentives. So the trade war has helped China’s efforts to redistribute wealth and restructure its economy. The trade war has also rallied the Chinese public around its government. US treatment of Chinese companies has been perceived as bullying and people have compared it to the way that the British Empire forced unfair trade practices on China in the 19th century. This topic is incredibly emotive in Chinese society and has boosted domestic support for the government. The Chinese word for crisis is composed of two characters – one for danger and the other for opportunity. The country’s ability to capitalise on the current challenge from the US will strengthen it for years to come. (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.)

US-China trade war is making China stronger

Top US and Chinese negotiators held phone talks on Tuesday as the world's top two economies seek to <a href="https://www.wionews.com/world/china-says-us-tariffs-must-be-lifted-to-reach-a-deal-to-end-trade-war-232996">resolve their trade war</a>, more than a week after they declared a truce.

Talks had broken down in May over US accusations that Beijing had reneged on its commitments, and the dispute escalated with the two sides exchanging steep increases in punitive tariffs.

But US President Donald Trump and Chinese leader Xi Jinping agreed to revive negotiations when they met on the <a href="https://www.wionews.com/business-economy/g20-says-worsening-trade-wars-pose-risk-to-world-economy-225664">sidelines of the G20 summit</a> in Japan on June 29.

US Treasury Secretary Steven Mnuchin and Trade Representative Robert Lighthizer spoke with Chinese Vice Premier Liu He and Commerce Minister Zhong Shan on Tuesday.

White House economic adviser Larry Kudlow told reporters the talks "went constructively" but it was "too soon for details."

In an interview with the Fox Business Network, Kudlow described the discussions as "preliminary" and said meetings will "probably" be arranged, but did not give more details.

Kudlow noted that Trump has agreed to hold off on imposing new tariffs and will allow certain US products to be sold to Chinese telecom giant Huawei.

"Having said that, we have a very strong -&nbsp;I want to underscore this -&nbsp;a very strong expectation that China will really shortly, maybe immediately, begin to purchase US agricultural products," he told the US broadcaster.

The Chinese commerce ministry said in a brief statement that the two sides exchanged "opinions on implementing the consensus reached between the two countries' heads of state in Osaka."

Washington and Beijing have hit each other with punitive tariffs covering more than $360 billion in two-way trade and those duties remain in place.

After his meeting with Xi in Osaka, Trump said he would refrain from imposing tariffs on more Chinese products. He had previously threatened to put punitive duties on an additional $300 billion in Chinese exports.

He also triggered a backlash in the US Congress by agreeing to soften some US export restrictions on components to Huawei, though Trump stipulated that officials would take care to avoid creating new risks to US national security.

The United States had imposed tough sanctions on the company, whose equipment US officials fear could be used as Trojan horses for China's intelligence services.

The ceasefire comes as the US presidential campaign has started ahead of the November 2020 election.

Asked about speculation that Beijing may be waiting to see how the race plays out, Kudlow said it "would be a very big mistake on their part."

"I think that kind of thinking would probably do great damage to these trade talks," he said.

But he suggested that the US was in no hurry to finalize a deal.

"Speed is not an issue, quality is the issue," Kudlow said. "And so I make no forecast on that and reiterate this view. &nbsp;There's no timetable, none of that stuff."

Top US and Chinese negotiators held phone talks on Tuesday as the world's top two economies seek to resolve their trade war, more than a week after they declared a truce.

Top US and Chinese negotiators held phone talks on Tuesday as the world's top two economies seek to resolve their trade war, more than a week after they declared a truce. Talks had broken down in May over US accusations that Beijing had reneged on its commitments, and the dispute escalated with the two sides exchanging steep increases in punitive tariffs. But US President Donald Trump and Chinese leader Xi Jinping agreed to revive negotiations when they met on the sidelines of the G20 summit in Japan on June 29. US Treasury Secretary Steven Mnuchin and Trade Representative Robert Lighthizer spoke with Chinese Vice Premier Liu He and Commerce Minister Zhong Shan on Tuesday. White House economic adviser Larry Kudlow told reporters the talks "went constructively" but it was "too soon for details." In an interview with the Fox Business Network, Kudlow described the discussions as "preliminary" and said meetings will "probably" be arranged, but did not give more details. Kudlow noted that Trump has agreed to hold off on imposing new tariffs and will allow certain US products to be sold to Chinese telecom giant Huawei. "Having said that, we have a very strong - I want to underscore this - a very strong expectation that China will really shortly, maybe immediately, begin to purchase US agricultural products," he told the US broadcaster. The Chinese commerce ministry said in a brief statement that the two sides exchanged "opinions on implementing the consensus reached between the two countries' heads of state in Osaka." Washington and Beijing have hit each other with punitive tariffs covering more than $360 billion in two-way trade and those duties remain in place. After his meeting with Xi in Osaka, Trump said he would refrain from imposing tariffs on more Chinese products. He had previously threatened to put punitive duties on an additional $300 billion in Chinese exports. He also triggered a backlash in the US Congress by agreeing to soften some US export restrictions on components to Huawei, though Trump stipulated that officials would take care to avoid creating new risks to US national security. The United States had imposed tough sanctions on the company, whose equipment US officials fear could be used as Trojan horses for China's intelligence services. The ceasefire comes as the US presidential campaign has started ahead of the November 2020 election. Asked about speculation that Beijing may be waiting to see how the race plays out, Kudlow said it "would be a very big mistake on their part." "I think that kind of thinking would probably do great damage to these trade talks," he said. But he suggested that the US was in no hurry to finalize a deal. "Speed is not an issue, quality is the issue," Kudlow said. "And so I make no forecast on that and reiterate this view. There's no timetable, none of that stuff."

After Trump, Xi G20 meeting, US, China resume talks to resolve trade war

The United States said Tuesday that its $2.2 billion arms sale to <a href="https://www.wionews.com/world/sale-of-weapons-to-taiwan-violates-one-china-policy-cancel-it-immediately-china-to-us-234236">Taiwan will contribute to stability</a> in Asia after China demanded that Washington cancel the order.

The State Department said the deal, which includes <a href="https://www.wionews.com/world/us-approves-possible-22-billion-arms-sale-to-taiwan-amid-tension-with-china-234130">battle tanks and anti-aircraft missiles</a>, did not change US recognition of Beijing as China's sole government.

"Our interest in Taiwan, especially as it relates to these military sales, is to promote peace and stability across the strait, across the region," State Department spokeswoman Morgan Ortagus told reporters.

"So there is no change of course in our long-standing one-China policy," she said.

"I don't see our notification here as anything other than complying with the Taiwan Relations Act," she said, referring to the law passed by Congress in 1979 that requires the United States to ensure that the island has the means to defend itself.

It was the biggest US arms sale in years to the self-governing democracy, where China's defeated nationalists fled in 1949 and which Beijing considers a province awaiting reunification.

China said it lodged a complaint through diplomatic channels expressing "strong dissatisfaction and resolute opposition" to the sale.

The deal includes 108 M1A2T Abrams tanks, 250 Stinger portable anti-aircraft missiles, related equipment and support at an estimated cost of just over $2.2 billion, according to the Defense Security Cooperation Agency (DSCA).

China has significantly stepped up diplomatic and military pressure on Taipei since the election in 2016 of President Tsai Ing-wen, whose Democratic Progressive Party refuses to acknowledge that the island is part of "One China".

The United States said Tuesday that its $2.2 billion arms sale to Taiwan will contribute to stability in Asia after China demanded that Washington cancel the order.

The United States said Tuesday that its $2.2 billion arms sale to Taiwan will contribute to stability in Asia after China demanded that Washington cancel the order. The State Department said the deal, which includes battle tanks and anti-aircraft missiles, did not change US recognition of Beijing as China's sole government. "Our interest in Taiwan, especially as it relates to these military sales, is to promote peace and stability across the strait, across the region," State Department spokeswoman Morgan Ortagus told reporters. "So there is no change of course in our long-standing one-China policy," she said. "I don't see our notification here as anything other than complying with the Taiwan Relations Act," she said, referring to the law passed by Congress in 1979 that requires the United States to ensure that the island has the means to defend itself. It was the biggest US arms sale in years to the self-governing democracy, where China's defeated nationalists fled in 1949 and which Beijing considers a province awaiting reunification. China said it lodged a complaint through diplomatic channels expressing "strong dissatisfaction and resolute opposition" to the sale. The deal includes 108 M1A2T Abrams tanks, 250 Stinger portable anti-aircraft missiles, related equipment and support at an estimated cost of just over $2.2 billion, according to the Defense Security Cooperation Agency (DSCA). China has significantly stepped up diplomatic and military pressure on Taipei since the election in 2016 of President Tsai Ing-wen, whose Democratic Progressive Party refuses to acknowledge that the island is part of "One China".

Military ties with Taiwan meant to promote peace across the strait: US

China on Monday said "unilateral bullying" by the United States was the cause behind the escalating Iran nuclear crisis, after <a href="https://www.wionews.com/world/britains-oil-tanker-seizure-will-not-go-without-a-response-iran-defence-minister-233959">Tehran</a> announced it was <a href="https://www.wionews.com/world/iran-says-it-will-enrich-uranium-at-any-level-challenging-us-233760">set to breach its uranium enrichment</a> cap.

"The facts show that unilateral bullying has already become a worsening tumour," said Chinese foreign ministry spokesman Geng Shuang at a press briefing in Beijing.

"The <a href="https://www.wionews.com/world/iran-better-be-careful-warns-trump-on-breaching-uranium-enrichment-cap-233859">maximum pressure exerted by the US</a> on Iran is the root cause of the Iranian nuclear crisis," he said.

Iran threatened on Sunday to abandon more commitments to an endangered 2015 nuclear deal unless a solution is found with the remaining parties after the US pulled out.&nbsp;

The 2015 deal was reached between Iran and <a href="https://www.wionews.com/world/after-britain-germany-strongly-urges-iran-to-halt-uranium-enrichment-233803">six world powers</a> -- Britain, China, France, Germany, the United States and Russia -- and saw Tehran agree to drastically scale down its nuclear programme in exchange for sanctions relief.

Washington began reimposing sanctions on Iran in August 2018 and has targeted crucial sectors including oil exports and the banking system, fuelling a deep recession.

Watch: Iran Shifts From Patience to Confrontation

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<a href="https://www.wionews.com/world/un-nuclear-watchdogs-board-to-meet-on-iran-at-request-of-us-233425">Tehran's move to start enriching uranium</a> above the maximum purification level has already drawn opposition from countries backing the nuclear deal, with Germany urging it to "stop and reverse all activities inconsistent with its commitments."

Geng said China has expressed "regret" for Tehran's decision to reduce its fulfilment of the Iran nuclear deal.&nbsp;

China on Monday said "unilateral bullying" by the United States was the cause behind the escalating Iran nuclear crisis, after Tehran announced it was set to breach its uranium enrichment cap.

China on Monday said "unilateral bullying" by the United States was the cause behind the escalating Iran nuclear crisis, after Tehran announced it was set to breach its uranium enrichment cap. "The facts show that unilateral bullying has already become a worsening tumour," said Chinese foreign ministry spokesman Geng Shuang at a press briefing in Beijing. "The maximum pressure exerted by the US on Iran is the root cause of the Iranian nuclear crisis," he said. Iran threatened on Sunday to abandon more commitments to an endangered 2015 nuclear deal unless a solution is found with the remaining parties after the US pulled out. The 2015 deal was reached between Iran and six world powers -- Britain, China, France, Germany, the United States and Russia -- and saw Tehran agree to drastically scale down its nuclear programme in exchange for sanctions relief. Washington began reimposing sanctions on Iran in August 2018 and has targeted crucial sectors including oil exports and the banking system, fuelling a deep recession. Watch: Iran Shifts From Patience to Confrontation × Tehran's move to start enriching uranium above the maximum purification level has already drawn opposition from countries backing the nuclear deal, with Germany urging it to "stop and reverse all activities inconsistent with its commitments." Geng said China has expressed "regret" for Tehran's decision to reduce its fulfilment of the Iran nuclear deal.

'Bullying' by United States is cause behind escalating Iran nuclear crisis: China

United States President Donald Trump in a series of tweets on Saturday said he had a great meeting with Chinese President Xi Jinping on the sidelines of the <a href="https://www.wionews.com/world/g20-summit-donald-trump-confirms-wont-impose-new-tariffs-on-china-231445">G20 summit in Japan's Osaka </a>where he also agreed to continue negotiations over the stalled trade talks between the two world economies.

"I had a great meeting with President Xi of <a href="https://www.wionews.com/world/china-eases-foreign-investment-curbs-amid-cooling-trade-tensions-231699">China </a>yesterday, far better than expected. I agreed not to increase the already existing Tariffs that we charge China while we continue to negotiate," the president wrote on Twitter.

The US-China trade war and climate change have been contentious issues during the G20 summit.

After a meeting with Chinese President Xi Jinping on the last day of the annual summit, US President Donald Trump says relations between the two countries are "back on track" after a breakdown in trade talks last month following Washington`s imposed tariffs on US $300 billion of Chinese goods.

"China has agreed that, during the negotiation, they will begin purchasing large amounts of agricultural product from our great Farmers," Trump added.

The US President further noted that he will allow Huawei Technologies to buy products from US suppliers, in a concession to the communist country.

"At the request of our High Tech companies, and President Xi, I agreed to allow Chinese company Huawei to buy the product from them which will not impact our National Security," Trump said.

"Importantly, we have opened up negotiations again with China as our relationship with them continues to be a very good one. The quality of the transaction is far more important to me than speed. I am in no hurry, but things look very good! There will be no reduction in the Tariffs currently being charged to China," he added.

The remarks came after the US Commerce Department last month had reportedly moved to blacklist Huawei, cutting it off from the US suppliers.

The US also has been engaged in a global campaign to block the Chinese tech giant from so-called 5G communications networks, calling the company a security threat.

The Trump administration has alleged that Beijing could use Huawei`s products to spy on countries that use them in their networks. The allegations were, however, denied by the company.&nbsp;

United States President Donald Trump in a series of tweets on Saturday said he had a great meeting with Chinese President Xi Jinping on the sidelines of the G20 summit in Japan's Osaka where he also agreed to continue negotiations over the stalled trade talks between the two world economies.

United States President Donald Trump in a series of tweets on Saturday said he had a great meeting with Chinese President Xi Jinping on the sidelines of the G20 summit in Japan's Osaka where he also agreed to continue negotiations over the stalled trade talks between the two world economies. "I had a great meeting with President Xi of China yesterday, far better than expected. I agreed not to increase the already existing Tariffs that we charge China while we continue to negotiate," the president wrote on Twitter. The US-China trade war and climate change have been contentious issues during the G20 summit. After a meeting with Chinese President Xi Jinping on the last day of the annual summit, US President Donald Trump says relations between the two countries are "back on track" after a breakdown in trade talks last month following Washington`s imposed tariffs on US $300 billion of Chinese goods. "China has agreed that, during the negotiation, they will begin purchasing large amounts of agricultural product from our great Farmers," Trump added. The US President further noted that he will allow Huawei Technologies to buy products from US suppliers, in a concession to the communist country. "At the request of our High Tech companies, and President Xi, I agreed to allow Chinese company Huawei to buy the product from them which will not impact our National Security," Trump said. "Importantly, we have opened up negotiations again with China as our relationship with them continues to be a very good one. The quality of the transaction is far more important to me than speed. I am in no hurry, but things look very good! There will be no reduction in the Tariffs currently being charged to China," he added. The remarks came after the US Commerce Department last month had reportedly moved to blacklist Huawei, cutting it off from the US suppliers. The US also has been engaged in a global campaign to block the Chinese tech giant from so-called 5G communications networks, calling the company a security threat. The Trump administration has alleged that Beijing could use Huawei`s products to spy on countries that use them in their networks. The allegations were, however, denied by the company.

Huawei allowed to buy from US suppliers as relations with China are 'back on track'

Leaders will try to negotiate a way out of the trade war. Reports says 2 sides have already reached tentative agreements. It's a big bilateral meet on the sidelines of G20 summit. Watch this video to know more.

G20 Summit Day 2: Xi maps the history of U.S-China ties

US President Doanld Trump said US-China bilateral can be a very productive meeting. He also said, ''We can do something truly monumental''. US has imposed tariffs on $250 Bn of Chinese imports. China has also imposed retaliatory tariffs on Washington. Watch this video to know more.

G20 Summit Day 2: Xi Upholds Cooperation Over Confrontation

G20 Summit Day 2: U.S-China Bilateral

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