<a href="http://www.wionews.com/world/is-china-buying-us-soy-washington-shutdown-keeps-traders-guessing-187225">China's factory activity </a>contracted in December for the first time in more than two years, in a further sign of slackening demand and rising pressure on the world's second-largest economy as it heads into 2019.

The official Purchasing Managers' Index (PMI) fell to 49.4 in December, below the critical 50-point level that separates growth from contraction, according to data released by the National Bureau of Statistics (NBS) on Monday.

It was the first contraction since July 2016 and the weakest PMI reading since February 2016 when it came in at 49.0. Analysts surveyed by Reuters had forecast the official gauge would fell to 49.9 for the month.

The increasing strain on factories signals a continued loss of economic momentum and raises the risks to both China and the global economy, especially if Sino-US trade tensions persist.

There are already signs that trade frictions between the economic giants are hurting global supply chains with concerns the effects could become more pronounced next year in a blow to world trade and investment.

Chinese authorities are expected to roll out more supportive measures on top of a range of policy initiatives this year. A prolonged downturn in the factory sector, key for jobs and the overall health of the economy, would likely draw further steps to juice up domestic demand.

There is also uncertainty over whether<a href="http://www.wionews.com/world/china-customs-gives-green-light-for-us-rice-imports-187045"> China and the United States</a> can bridge their differences during a temporary ceasefire in their trade war.

At the beginning of this month, US President Donald Trump and Chinese President Xi Jinping agreed to a 90-day ceasefire that delayed the planned Jan. 1 US increase of tariffs on $200 billion worth of Chinese goods while they negotiate a trade deal.

New export orders contracted for a seventh straight month on faltering external demand, with the sub-index falling to 46.6 from the previous month's reading of 47.0.

"There are many short-term orders from overseas but few long-term orders received by Chinese factories as caution remains amid the trade uncertainties," Nie Wen, an economist at Hwabao Trust in Shanghai, said before the PMI release.

"The medium to long-term export prospect is not optimistic particularly."

In contrast, the factor activity gauge, the official non-manufacturing PMI, also released on Monday, rose to 53.8 from 53.4 in November, well above the 50-point mark that separates growth from contraction.

The services sector accounts for more than half of China's economy, with rising wages giving Chinese consumers more spending power. But consumer demand and confidence have been faltering recently in a sign of growing pressure on the economy.

China's factory activity contracted in December for the first time in more than two years, in a further sign of slackening demand and rising pressure on the world's second-largest economy as it heads into 2019.

China's factory activity contracted in December for the first time in more than two years, in a further sign of slackening demand and rising pressure on the world's second-largest economy as it heads into 2019. The official Purchasing Managers' Index (PMI) fell to 49.4 in December, below the critical 50-point level that separates growth from contraction, according to data released by the National Bureau of Statistics (NBS) on Monday. It was the first contraction since July 2016 and the weakest PMI reading since February 2016 when it came in at 49.0. Analysts surveyed by Reuters had forecast the official gauge would fell to 49.9 for the month. The increasing strain on factories signals a continued loss of economic momentum and raises the risks to both China and the global economy, especially if Sino-US trade tensions persist. There are already signs that trade frictions between the economic giants are hurting global supply chains with concerns the effects could become more pronounced next year in a blow to world trade and investment. Chinese authorities are expected to roll out more supportive measures on top of a range of policy initiatives this year. A prolonged downturn in the factory sector, key for jobs and the overall health of the economy, would likely draw further steps to juice up domestic demand. There is also uncertainty over whether China and the United States can bridge their differences during a temporary ceasefire in their trade war. At the beginning of this month, US President Donald Trump and Chinese President Xi Jinping agreed to a 90-day ceasefire that delayed the planned Jan. 1 US increase of tariffs on $200 billion worth of Chinese goods while they negotiate a trade deal. New export orders contracted for a seventh straight month on faltering external demand, with the sub-index falling to 46.6 from the previous month's reading of 47.0. "There are many short-term orders from overseas but few long-term orders received by Chinese factories as caution remains amid the trade uncertainties," Nie Wen, an economist at Hwabao Trust in Shanghai, said before the PMI release. "The medium to long-term export prospect is not optimistic particularly." In contrast, the factor activity gauge, the official non-manufacturing PMI, also released on Monday, rose to 53.8 from 53.4 in November, well above the 50-point mark that separates growth from contraction. The services sector accounts for more than half of China's economy, with rising wages giving Chinese consumers more spending power. But consumer demand and confidence have been faltering recently in a sign of growing pressure on the economy.

China's factory activity falls for first time in over 2 years: Report

Chinese President Xi Jinping and Russian President Vladimir Putin exchanged New Year greetings on Monday.

In his congratulatory message to Putin, Xi, on behalf of the Chinese government and people, extended sincere greetings and good wishes to President Putin and the Russian people.

He said that the year 2018 has a special significance to China-Russia relations, and both countries have smoothly completed their respective important domestic political agendas and opened a new era for China-Russia ties.

During the year, China and Russia witnessed more frequent high-level exchanges, deepened mutual political trust and a series of achievements from bilateral pragmatic cooperation in various fields, Xi said.

The Year of China-Russia Local Cooperation and Exchange program proceeded smoothly in 2018, and the popular support for friendship from generation to generation between the two peoples has been further consolidated, the Chinese president said.

The two countries collaborated actively in international and regional affairs and played important constructive roles in safeguarding international equity and justice as well as world peace and stability, he said.

The year 2019 marks the 70th anniversary of the establishment of diplomatic relations between China and Russia, Xi said, noting that he is willing to work with Putin to prompt bilateral relations and cooperation in various fields to make new progress and bring more benefits to the two countries and peoples.

In his congratulatory message, Putin extended warm New Year greetings to Xi, and wished the Chinese people happiness and good health.

In 2018, the Russia-China comprehensive strategic partnership of coordination reached an unprecedented level with substantiated political dialogues and rapidly expanding two-way trade, Putin said.

The Year of China-Russia Local Cooperation and Exchange got off to a good start, and the two countries conducted fruitful cooperation in solving major global and regional issues, he said.

Russia and China will celebrate the 70th anniversary of the establishment of diplomatic ties in 2019, the Russian president said, voicing his belief that both sides will take the opportunity to continue effective cooperation in bilateral and multilateral affairs.

Also on Monday, Chinese Premier Li Keqiang and his Russian counterpart Dmitry Medvedev exchanged New Year greetings.

In his congratulatory message, Li said China would like to promote cooperation with Russia in trade, energy, finance, technology, agriculture, humanities and other areas to facilitate common development of both nations.

For his part, Medvedev said that Russia highly values the achievements of the 23rd regular meeting between Chinese and Russian heads of government, and is willing to work actively with China to promote bilateral cooperation in various fields.

Xi Jinping said that the year 2018 has a special significance to China-Russia relations, and both countries have smoothly completed their respective important domestic political agendas.

Chinese President Xi Jinping and Russian President Vladimir Putin exchanged New Year greetings on Monday. In his congratulatory message to Putin, Xi, on behalf of the Chinese government and people, extended sincere greetings and good wishes to President Putin and the Russian people. He said that the year 2018 has a special significance to China-Russia relations, and both countries have smoothly completed their respective important domestic political agendas and opened a new era for China-Russia ties. During the year, China and Russia witnessed more frequent high-level exchanges, deepened mutual political trust and a series of achievements from bilateral pragmatic cooperation in various fields, Xi said. The Year of China-Russia Local Cooperation and Exchange program proceeded smoothly in 2018, and the popular support for friendship from generation to generation between the two peoples has been further consolidated, the Chinese president said. The two countries collaborated actively in international and regional affairs and played important constructive roles in safeguarding international equity and justice as well as world peace and stability, he said. The year 2019 marks the 70th anniversary of the establishment of diplomatic relations between China and Russia, Xi said, noting that he is willing to work with Putin to prompt bilateral relations and cooperation in various fields to make new progress and bring more benefits to the two countries and peoples. In his congratulatory message, Putin extended warm New Year greetings to Xi, and wished the Chinese people happiness and good health. In 2018, the Russia-China comprehensive strategic partnership of coordination reached an unprecedented level with substantiated political dialogues and rapidly expanding two-way trade, Putin said. The Year of China-Russia Local Cooperation and Exchange got off to a good start, and the two countries conducted fruitful cooperation in solving major global and regional issues, he said. Russia and China will celebrate the 70th anniversary of the establishment of diplomatic ties in 2019, the Russian president said, voicing his belief that both sides will take the opportunity to continue effective cooperation in bilateral and multilateral affairs. Also on Monday, Chinese Premier Li Keqiang and his Russian counterpart Dmitry Medvedev exchanged New Year greetings. In his congratulatory message, Li said China would like to promote cooperation with Russia in trade, energy, finance, technology, agriculture, humanities and other areas to facilitate common development of both nations. For his part, Medvedev said that Russia highly values the achievements of the 23rd regular meeting between Chinese and Russian heads of government, and is willing to work actively with China to promote bilateral cooperation in various fields.

2018 opened a new era for China-Russia ties, says Xi Jinping to Putin in New year greetings

China will continue market reforms and open its doors to the world in the face of a challenging geopolitical landscape, President Xi Jinping pledged Monday in a New Year speech.

Xi said that in 2018 -- 40 years since the transformation led by Deng Xiaoping -- the country had enacted "systematic, holistic and reconstructive reforms of the party and state institutions".

"The pace of our reform will not stagnate, and the open door will only grow bigger and bigger," he said in a speech broadcast by the state-run CCTV.

China recently marked the anniversary of the momentous policy shift agreed at a Communist Party gathering on December 18, 1978 under late paramount leader Deng, who is considered the architect of the country's opening up to the world.

Xi said on Monday that China had welcomed many "new and old friends" to the country, hosting several international forums this year.

"My colleagues and I visited five continents... had extensive exchanges with leaders of various countries, consolidated friendship, enhanced trust, and expanded our circle of friends," he said.

Touching on geopolitics, Xi said the world is in an unprecedented situation under the toughest conditions in a century.

"No matter how the international situation changes, China's confidence and determination to safeguard national sovereignty and security will not change," he said.

"China's sincerity and goodwill to maintain world peace and promote common development will not change."

China has been locked in a bruising trade war with the United States and is also facing a slowing domestic economy.

Washington and Beijing have imposed tit-for-tat tariffs on more than $300 billion worth of goods, and the trade conflict has spooked markets worldwide.

But both countries on December 1 agreed to a 90-day truce after Xi met with US President Donald Trump on the sidelines of the G20 summit in Argentina.

2019 will also see China celebrating 70 years since its founding as a nation.

"Seventy years of challenges, 70 years of wind and rain," Xi said.

"Along the way, the Chinese people have become self-reliant and hard-working, creating a Chinese miracle that has attracted worldwide attention."

China will continue market reforms and open its doors to the world in the face of a challenging geopolitical landscape, President Xi Jinping pledged Monday in a New Year speech.

China will continue market reforms and open its doors to the world in the face of a challenging geopolitical landscape, President Xi Jinping pledged Monday in a New Year speech. Xi said that in 2018 -- 40 years since the transformation led by Deng Xiaoping -- the country had enacted "systematic, holistic and reconstructive reforms of the party and state institutions". "The pace of our reform will not stagnate, and the open door will only grow bigger and bigger," he said in a speech broadcast by the state-run CCTV. China recently marked the anniversary of the momentous policy shift agreed at a Communist Party gathering on December 18, 1978 under late paramount leader Deng, who is considered the architect of the country's opening up to the world. Xi said on Monday that China had welcomed many "new and old friends" to the country, hosting several international forums this year. "My colleagues and I visited five continents... had extensive exchanges with leaders of various countries, consolidated friendship, enhanced trust, and expanded our circle of friends," he said. Touching on geopolitics, Xi said the world is in an unprecedented situation under the toughest conditions in a century. "No matter how the international situation changes, China's confidence and determination to safeguard national sovereignty and security will not change," he said. "China's sincerity and goodwill to maintain world peace and promote common development will not change." China has been locked in a bruising trade war with the United States and is also facing a slowing domestic economy. Washington and Beijing have imposed tit-for-tat tariffs on more than $300 billion worth of goods, and the trade conflict has spooked markets worldwide. But both countries on December 1 agreed to a 90-day truce after Xi met with US President Donald Trump on the sidelines of the G20 summit in Argentina. 2019 will also see China celebrating 70 years since its founding as a nation. "Seventy years of challenges, 70 years of wind and rain," Xi said. "Along the way, the Chinese people have become self-reliant and hard-working, creating a Chinese miracle that has attracted worldwide attention."

China President Xi jinping pledges to continue reforms, open markets in New Year address

Xi Jinping, Vladimir Putin exchange new year greetings

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

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

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

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

Pakistan has said that the China-Pakistan Economic Corridor (CPEC) is a bilateral economic project and has no military dimensions.

Foreign Office spokesman Mohammad Faisal said this at the weekly media briefing here on Thursday when asked about a US media report that alleged that China has hatched a secret plan to build fighter jets and other military hardware in Pakistan as part of the $60 billion project.

The Islamabad datelined report in the New York Times said Pakistani Air Force and Chinese officials were putting the final touches to the secret proposal. China last week dismissed as untrue the report.

Responding to the report, Faisal said the CPEC is an economic project between Pakistan and China, the Dawn reported.&nbsp;

"The CPEC has helped Pakistan improve its economy, particularly energy and infrastructure sectors have improved under it. The CPEC is a bilateral economic project, which is not against any country,"&nbsp;he was quoted as saying by the daily.

The CPEC, which connects Gwadar Port in Balochistan with China's Xinjiang province, is the flagship project of Chinese President Xi Jinping's ambitious Belt and Road Initiative (BRI).

All-weather friends and close allies, China and Pakistan have been jointly building the J-17 Thunder, a single seater multi-role combat aircraft. Pakistan has been eyeing a number of new advanced Chinese jets including the stealth fighter.

The Islamabad datelined report in the New York Times said Pakistani Air Force and Chinese officials were putting the final touches to the secret proposal.

Pakistan has said that the China-Pakistan Economic Corridor (CPEC) is a bilateral economic project and has no military dimensions. Foreign Office spokesman Mohammad Faisal said this at the weekly media briefing here on Thursday when asked about a US media report that alleged that China has hatched a secret plan to build fighter jets and other military hardware in Pakistan as part of the $60 billion project. The Islamabad datelined report in the New York Times said Pakistani Air Force and Chinese officials were putting the final touches to the secret proposal. China last week dismissed as untrue the report. Responding to the report, Faisal said the CPEC is an economic project between Pakistan and China, the Dawn reported. "The CPEC has helped Pakistan improve its economy, particularly energy and infrastructure sectors have improved under it. The CPEC is a bilateral economic project, which is not against any country," he was quoted as saying by the daily. The CPEC, which connects Gwadar Port in Balochistan with China's Xinjiang province, is the flagship project of Chinese President Xi Jinping's ambitious Belt and Road Initiative (BRI). All-weather friends and close allies, China and Pakistan have been jointly building the J-17 Thunder, a single seater multi-role combat aircraft. Pakistan has been eyeing a number of new advanced Chinese jets including the stealth fighter.

China-Pakistan Economic Corridor is bilateral economic project, has no military dimensions: Pakistan

China and the United States have made plans for face-to-face consultations over trade in January, the Chinese commerce ministry said on Thursday, as the world's two biggest economies advanced efforts to resolve a months-long trade war.

Consultations through "intensive" telephone calls will continue in the meantime, Gao Feng, spokesman at the commerce ministry, told reporters, adding that talks have been steadily moving forward despite the Christmas break in the United States.

"Even as the US side is in the Christmas holiday period, China and US&nbsp;economic and trade teams have been in close communication, and the consultations are progressing in an orderly manner as scheduled," Gao said, when asked about progress on trade negotiations.

Gao did not comment directly when asked to confirm a media report on a US&nbsp;trade delegation visit scheduled for the week of January&nbsp;7.

"The two sides have indeed made specific arrangements for face-to-face consultations in January in addition to continuing intensive telephone consultations," he said, without elaborating.

US&nbsp;and Chinese officials have spoken by phone in recent weeks, but a meeting next month would be the first in-person talks since US&nbsp;President Donald Trump met his Chinese counterpart, Xi Jinping, in Buenos Aires on December&nbsp;1.

Trump and Xi agreed to stop escalating tit-for-tat tariffs that have disrupted the flow of hundreds of billions of dollars of goods between the two nations. The two leaders also agreed to launch new talks while the United States delayed a planned January&nbsp;1 tariff increase until March.

In response, China has resumed purchases of US&nbsp;soybeans for the first time in six months, even though hefty tariffs on US&nbsp;cargoes remain in place.

Tariff suspension

China has also said it will suspend additional tariffs on US-made vehicles and auto parts for three months starting January 1, adding that it hopes both sides can speed up negotiations to remove all additional tariffs on each other's goods.

A US&nbsp;trade team will travel to Beijing the week of January&nbsp;7 to hold talks with Chinese officials, Bloomberg reported on Wednesday, citing two people familiar with the matter.

A person familiar with the matter told Reuters last week that talks were likely in early January.

In yet another reconciliatory sign, China issued on Tuesday a so-called "negative" list that specifies industries where investors - domestic or foreign - are either restricted or prohibited.

The unified list is seen as an effort to address concerns from Western investors that there is no level-playing field in China. Investment in key Chinese sectors, however, is still prohibited.

Draft investment law

On Wednesday, China unveiled the draft of a foreign investment law for public consultation. In it, China has proposed a ban on forced technology transfer and illegal government "interference" in foreign business operations, practices that have come under the spotlight during the trade war.

While China has frequently denied accusations of engaging in such practices, it has pledged to improve market access for foreign investors and better protect their rights in the face of growing complaints and reduced foreign investment.

In an apparent move to emphasize reciprocity, the draft law said China would reserve the right to retaliate against countries that discriminate against Chinese investment with "corresponding measures".

The draft will likely go through several readings before being submitted to China's parliament for formal approval, which could take another year or more.

Heaping some uncertainty in the way of the bilateral trade talks was the recent arrest of the chief financial officer of Huawei Technologies Co Ltd in Canada at the request of the United States.

US&nbsp;prosecutors accuse Meng Wanzhou of misleading multinational banks about Iran-linked transactions, putting the banks at risk of violating US&nbsp;sanctions. Meng, who is the daughter of Huawei's founder, has said she is innocent.

China and the United States have made plans for face-to-face consultations over trade in January, the Chinese commerce ministry said on Thursday, as the world's two biggest economies advanced efforts to resolve a months-long trade war.

China and the United States have made plans for face-to-face consultations over trade in January, the Chinese commerce ministry said on Thursday, as the world's two biggest economies advanced efforts to resolve a months-long trade war. Consultations through "intensive" telephone calls will continue in the meantime, Gao Feng, spokesman at the commerce ministry, told reporters, adding that talks have been steadily moving forward despite the Christmas break in the United States. "Even as the US side is in the Christmas holiday period, China and US economic and trade teams have been in close communication, and the consultations are progressing in an orderly manner as scheduled," Gao said, when asked about progress on trade negotiations. Gao did not comment directly when asked to confirm a media report on a US trade delegation visit scheduled for the week of January 7. "The two sides have indeed made specific arrangements for face-to-face consultations in January in addition to continuing intensive telephone consultations," he said, without elaborating. US and Chinese officials have spoken by phone in recent weeks, but a meeting next month would be the first in-person talks since US President Donald Trump met his Chinese counterpart, Xi Jinping, in Buenos Aires on December 1. Trump and Xi agreed to stop escalating tit-for-tat tariffs that have disrupted the flow of hundreds of billions of dollars of goods between the two nations. The two leaders also agreed to launch new talks while the United States delayed a planned January 1 tariff increase until March. In response, China has resumed purchases of US soybeans for the first time in six months, even though hefty tariffs on US cargoes remain in place. Tariff suspension China has also said it will suspend additional tariffs on US-made vehicles and auto parts for three months starting January 1, adding that it hopes both sides can speed up negotiations to remove all additional tariffs on each other's goods. A US trade team will travel to Beijing the week of January 7 to hold talks with Chinese officials, Bloomberg reported on Wednesday, citing two people familiar with the matter. A person familiar with the matter told Reuters last week that talks were likely in early January. In yet another reconciliatory sign, China issued on Tuesday a so-called "negative" list that specifies industries where investors - domestic or foreign - are either restricted or prohibited. The unified list is seen as an effort to address concerns from Western investors that there is no level-playing field in China. Investment in key Chinese sectors, however, is still prohibited. Draft investment law On Wednesday, China unveiled the draft of a foreign investment law for public consultation. In it, China has proposed a ban on forced technology transfer and illegal government "interference" in foreign business operations, practices that have come under the spotlight during the trade war. While China has frequently denied accusations of engaging in such practices, it has pledged to improve market access for foreign investors and better protect their rights in the face of growing complaints and reduced foreign investment. In an apparent move to emphasize reciprocity, the draft law said China would reserve the right to retaliate against countries that discriminate against Chinese investment with "corresponding measures". The draft will likely go through several readings before being submitted to China's parliament for formal approval, which could take another year or more. Heaping some uncertainty in the way of the bilateral trade talks was the recent arrest of the chief financial officer of Huawei Technologies Co Ltd in Canada at the request of the United States. US prosecutors accuse Meng Wanzhou of misleading multinational banks about Iran-linked transactions, putting the banks at risk of violating US sanctions. Meng, who is the daughter of Huawei's founder, has said she is innocent.

China says has made plans with US for face-to-face trade meeting in January

China's top policymakers Friday signalled more support for the economy next year with tax cuts and other policy measures as a bruising battle on debt and a trade war with the US have weighed on growth.

The meeting headed by President Xi Jinping also pledged further opening of the economy, better protection of intellectual property rights and to push forward trade negotiations with Washington.

The outcome of the annual Central Economic Work Conference, during which leaders review past policy and plan for the upcoming year, was published by the state news agency Xinhua.

Economic data has shown China's economy slowing this autumn, with Chinese consumer spending growing at its slowest pace in 15 years during November and factories easing up on production.

Xi and US President Donald Trump agreed to a 90-day tariff truce this month, as the two sides try to find a more permanent solution to the trade dispute.

Trade frictions with the US have been "handled steadily", the statement said.

"We must implement the consensus reached in Argentina between the Chinese and US heads of state and push forward economic and trade negotiations," the readout said.

Comprehensive opening up is listed as one of the seven major tasks for next year -- but critics say Beijing has long promised much while delivering little.

Beijing will work to relax market access, protect the legitimate rights and interests of foreign businessmen in China, especially IP rights, and allow&nbsp; 
them to operate independently in more areas, Xinhua said.

China's top officials hammer out their broad plans for the next 12 months during the three-day closed-door meeting.

Besides Xi, the entire Politburo standing committee, and top leaders from every province and region attended, Xinhua said.

China would "continue to implement a proactive fiscal policy and a prudent monetary policy," the statement said.

The meeting pushed for more fiscal measures and "a larger tax cut".&nbsp; 
Beijing has already put in place one round of tax cuts for the middle and lower class this year.

Still the trade row with the US has sapped market confidence, dragging down Chinese equities and the yuan.

Policymakers said they would increase the scale of local government bond issuance and solve financing problems for small and medium enterprises.

The world's number two economy expanded at its slowest pace for nine years in July-September and analysts expect full year growth to slow further next year.

The meeting said China would "keep the economy running in a reasonable range," next year.

China's leaders are battling to stabilise the economy, transforming it from one fuelled by exports and state investment to one that relies on domestic consumption.

Leaders will work to "enhance spending power, let the people eat with ease, dress satisfactorily, and use things comfortably," Xinhua said.

Policymakers indicated they would continue to push deleveraging and handle local government debt risks.

"We must do a good job in preventing and resolving major risks," the statement said.&nbsp;

China's top policymakers Friday signalled more support for the economy next year with tax cuts and other policy measures as a bruising battle on debt and a trade war with the US have weighed on growth.

China's top policymakers Friday signalled more support for the economy next year with tax cuts and other policy measures as a bruising battle on debt and a trade war with the US have weighed on growth. The meeting headed by President Xi Jinping also pledged further opening of the economy, better protection of intellectual property rights and to push forward trade negotiations with Washington. The outcome of the annual Central Economic Work Conference, during which leaders review past policy and plan for the upcoming year, was published by the state news agency Xinhua. Economic data has shown China's economy slowing this autumn, with Chinese consumer spending growing at its slowest pace in 15 years during November and factories easing up on production. Xi and US President Donald Trump agreed to a 90-day tariff truce this month, as the two sides try to find a more permanent solution to the trade dispute. Trade frictions with the US have been "handled steadily", the statement said. "We must implement the consensus reached in Argentina between the Chinese and US heads of state and push forward economic and trade negotiations," the readout said. Comprehensive opening up is listed as one of the seven major tasks for next year -- but critics say Beijing has long promised much while delivering little. Beijing will work to relax market access, protect the legitimate rights and interests of foreign businessmen in China, especially IP rights, and allow them to operate independently in more areas, Xinhua said. China's top officials hammer out their broad plans for the next 12 months during the three-day closed-door meeting. Besides Xi, the entire Politburo standing committee, and top leaders from every province and region attended, Xinhua said. China would "continue to implement a proactive fiscal policy and a prudent monetary policy," the statement said. The meeting pushed for more fiscal measures and "a larger tax cut". Beijing has already put in place one round of tax cuts for the middle and lower class this year. Still the trade row with the US has sapped market confidence, dragging down Chinese equities and the yuan. Policymakers said they would increase the scale of local government bond issuance and solve financing problems for small and medium enterprises. The world's number two economy expanded at its slowest pace for nine years in July-September and analysts expect full year growth to slow further next year. The meeting said China would "keep the economy running in a reasonable range," next year. China's leaders are battling to stabilise the economy, transforming it from one fuelled by exports and state investment to one that relies on domestic consumption. Leaders will work to "enhance spending power, let the people eat with ease, dress satisfactorily, and use things comfortably," Xinhua said. Policymakers indicated they would continue to push deleveraging and handle local government debt risks. "We must do a good job in preventing and resolving major risks," the statement said.

China signals more support for economy next year with tax cuts

The first meeting of the newly constituted 'India-China High-Level Mechanism on Cultural and People-to-People Exchanges'&nbsp;took place in New Delhi with both sides reaffirming momentum in ties. The meeting was co-chaired by External Affairs Minister Sushma Swaraj and Chinese Foreign Minister Wang Yi.

Calling Wuhan informal summit between Prime Minister Narendra Modi and Chinese President Xi Jinping a "milestone in bilateral relations", Swaraj said, "PM Modi and President Xi have established a personal connection and laid our strategic guidance."

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<div class="twitter-block" draggable="false">
<blockquote class="twitter-tweet" data-lang="en">
EAM Sushma Swaraj at 3rd India-China High-Level Media Forum Inaugural Session: I'm satisfied with the quality of discussion today.Ten priorities we discussed include enhancing cooperation in films, education, tourism, art, yoga, media, culture, sports, academic &amp; youth exchanges <a href="https://t.co/GzWnMgRPud">pic.twitter.com/GzWnMgRPud</a>
— ANI (@ANI) <a href="https://twitter.com/ANI/status/1076052889565609986?ref_src=twsrc%5Etfw">December 21, 2018</a></blockquote>
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She added, "the armies of both the countries are making effort to strengthen contacts and implement confidence-building measures. This will help to promote peace and tranquillity at India-China border which is an important prerequisite for smooth development of bilateral relations."

The decision to establish the India-China High-Level Mechanism on Cultural and People-to-People Exchanges was taken during the informal summit between Prime Minister Modi and President Xi Jinping in Wuhan in April 2018.&nbsp;

Chinese Foreign minister Wang Yi said, "we agreed to leverage strengths in respective fields. People to people exchanges should be of the people and for the people. It is a major initiative in the history of India and China relations."

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Chinese State Councilor and Foreign Minister Wang Yi: We agreed to leverage strengths in respective fields. People to people exchanges should be of the people and for the people. It is a major initiative in the history of India and China relations. <a href="https://t.co/ilVvycgB0G">pic.twitter.com/ilVvycgB0G</a>
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He also called on to increase people-to-people exchanges between India and China which he said: "will serve as progress for the entire mankind."

Both the sides agreed on 10 priority areas which include enhancing cooperation in films, education, tourism, art, yoga, media, culture, sports, academic and youth exchanges."

The High-Level Mechanism will bring all the existing bilateral, cultural and people-to-people engagements between India and China under one umbrella.

This was the last high-level meeting between India and China this year. This year, PM Modi met Chinese President Jinping four times -- from Wuhan informal summit in April to the meeting on the sidelines of the SCO summit, BRICS Summit and the G20 summit. Chinese President Xi Jinping will be visiting India in 2019 for the second informal summit between India and China.

The first meeting of the newly constituted 'India-China High-Level Mechanism on Cultural and People-to-People Exchanges' took place in New Delhi with both sides reaffirming momentum in ties.

The first meeting of the newly constituted 'India-China High-Level Mechanism on Cultural and People-to-People Exchanges' took place in New Delhi with both sides reaffirming momentum in ties. The meeting was co-chaired by External Affairs Minister Sushma Swaraj and Chinese Foreign Minister Wang Yi. Calling Wuhan informal summit between Prime Minister Narendra Modi and Chinese President Xi Jinping a "milestone in bilateral relations", Swaraj said, "PM Modi and President Xi have established a personal connection and laid our strategic guidance." EAM Sushma Swaraj at 3rd India-China High-Level Media Forum Inaugural Session: I'm satisfied with the quality of discussion today.Ten priorities we discussed include enhancing cooperation in films, education, tourism, art, yoga, media, culture, sports, academic & youth exchanges pic.twitter.com/GzWnMgRPud — ANI (@ANI) December 21, 2018 × She added, "the armies of both the countries are making effort to strengthen contacts and implement confidence-building measures. This will help to promote peace and tranquillity at India-China border which is an important prerequisite for smooth development of bilateral relations." The decision to establish the India-China High-Level Mechanism on Cultural and People-to-People Exchanges was taken during the informal summit between Prime Minister Modi and President Xi Jinping in Wuhan in April 2018. Chinese Foreign minister Wang Yi said, "we agreed to leverage strengths in respective fields. People to people exchanges should be of the people and for the people. It is a major initiative in the history of India and China relations." Chinese State Councilor and Foreign Minister Wang Yi: We agreed to leverage strengths in respective fields. People to people exchanges should be of the people and for the people. It is a major initiative in the history of India and China relations. pic.twitter.com/ilVvycgB0G — ANI (@ANI) December 21, 2018 × He also called on to increase people-to-people exchanges between India and China which he said: "will serve as progress for the entire mankind." Both the sides agreed on 10 priority areas which include enhancing cooperation in films, education, tourism, art, yoga, media, culture, sports, academic and youth exchanges." The High-Level Mechanism will bring all the existing bilateral, cultural and people-to-people engagements between India and China under one umbrella. This was the last high-level meeting between India and China this year. This year, PM Modi met Chinese President Jinping four times -- from Wuhan informal summit in April to the meeting on the sidelines of the SCO summit, BRICS Summit and the G20 summit. Chinese President Xi Jinping will be visiting India in 2019 for the second informal summit between India and China.

Wuhan was a milestone, PM Modi and President Xi have personal connect: Sushma Swaraj

The first India China High-Level Mechanism on People-to-People Exchanges which was one of the outcomes of the informal Wuhan summit between Prime Minister Narendra Modi and Chinese President Xi Jinping will take place on Friday in Delhi. The meeting will be co-chaired by External Affairs Minister Sushma Swaraj and Chinese Foreign Minister Wang Yi. The two ministers will also open the India-China High-Level Media Forum Inaugural Session.

Replying to a question by the media, Ministry of External Affairs spokesperson Raveesh Kumar said, "This is the first meeting of India China High-Level mechanism on cultural and people to people exchange. The decision to establish a special mechanism was taken during the informal summit between PM Modi and Chinese President Xi. Reflects desire of the two sides to build synergy on people to people exchanges."

Chinese foreign minister who is on a four day India visit from December 21 to 24 will also visit Aurangabad and Mumbai. A number of MoUs are expected to be signed during his India visit.

The year 2018 saw a reset in India-China ties which went under strain last year due to Doklam standoff in Bhutan. The standoff between the armed forces of the two countries occurred after the Chinese army attempted to build a road in Bhutan's Doklam area. The conflict was resolved after several rounds of talks.

The current year saw Prime Minister Modi and Chinese President Xi Jinping meeting four times. The two leaders first met at the Wuhan informal summit, followed by bilateral meetings on the sidelines of the SCO summit in China, BRICS summit in South Africa and the G20 summit in Argentina.&nbsp;

The first India China High-Level Mechanism on People-to-People Exchanges which was one of the outcomes of the informal Wuhan summit between Prime Minister Narendra Modi and Chinese President Xi Jinping will take place on Friday in Delhi.

The first India China High-Level Mechanism on People-to-People Exchanges which was one of the outcomes of the informal Wuhan summit between Prime Minister Narendra Modi and Chinese President Xi Jinping will take place on Friday in Delhi. The meeting will be co-chaired by External Affairs Minister Sushma Swaraj and Chinese Foreign Minister Wang Yi. The two ministers will also open the India-China High-Level Media Forum Inaugural Session. Replying to a question by the media, Ministry of External Affairs spokesperson Raveesh Kumar said, "This is the first meeting of India China High-Level mechanism on cultural and people to people exchange. The decision to establish a special mechanism was taken during the informal summit between PM Modi and Chinese President Xi. Reflects desire of the two sides to build synergy on people to people exchanges." Chinese foreign minister who is on a four day India visit from December 21 to 24 will also visit Aurangabad and Mumbai. A number of MoUs are expected to be signed during his India visit. The year 2018 saw a reset in India-China ties which went under strain last year due to Doklam standoff in Bhutan. The standoff between the armed forces of the two countries occurred after the Chinese army attempted to build a road in Bhutan's Doklam area. The conflict was resolved after several rounds of talks. The current year saw Prime Minister Modi and Chinese President Xi Jinping meeting four times. The two leaders first met at the Wuhan informal summit, followed by bilateral meetings on the sidelines of the SCO summit in China, BRICS summit in South Africa and the G20 summit in Argentina.

On Friday, first India, China high-level mechanism on people-to-people exchanges

As tensions between the two countries escalates over the arrest of Huawei's Chief Financial Officer <a href="http://www.wionews.com/world/who-is-huawei-executive-meng-wanzhou-183193">Meng Wanzhou's</a>&nbsp;arrest, a third Canadian citizen has been detained in China, news agency Reuters reported on Wednesday citing a local newspaper report.

China's foreign ministry spokeswoman Hua Chunying, in a news briefing in Beijing, however said that she is unaware of the report.

Earlier this month, <a href="http://www.wionews.com/central-asia/two-canadians-being-investigated-for-threatening-national-security-china-183709">China detained two Canadian businessmen Michael Spavor and Michael Kovrig</a>, a former diplomat and an adviser with the International Crisis Group (ICG), after police arrested Meng on December 1 in Vancouver.

They were arrested for "threatening national security".

Whether the third arrest is linked to Meng's case is not yet known.

China's relations with Canada have nosedived in the past week after Huawei CFO Meng Wanzhou was arrested on December 1st on the insistence of US officials for allegedly carrying out transactions with Iran despite US sanctions.

Meng meanwhile has denied any wrongdoing.

Last&nbsp;Wednesday, <a href="http://www.wionews.com/world/huawei-cfo-meng-wanzhou-freed-on-bail-leaves-courthouse-183504">Meng was released on a 7.5 million bail </a>on a condition that she has to stay in Canada.

Meanwhile, Canadian PM Trudeau, in his strongest comments on the matter to date has said that China's detention of the two men is "not acceptable."

As tensions between the two countries escalates over the arrest of Huawei's Chief Financial Officer Meng Wanzhou's arrest, a third Canadian citizen has been detained in China, news agency Reuters reported on Wednesday citing a local newspaper report.

As tensions between the two countries escalates over the arrest of Huawei's Chief Financial Officer Meng Wanzhou's arrest, a third Canadian citizen has been detained in China, news agency Reuters reported on Wednesday citing a local newspaper report. China's foreign ministry spokeswoman Hua Chunying, in a news briefing in Beijing, however said that she is unaware of the report. Earlier this month, China detained two Canadian businessmen Michael Spavor and Michael Kovrig, a former diplomat and an adviser with the International Crisis Group (ICG), after police arrested Meng on December 1 in Vancouver. They were arrested for "threatening national security". Whether the third arrest is linked to Meng's case is not yet known. China's relations with Canada have nosedived in the past week after Huawei CFO Meng Wanzhou was arrested on December 1st on the insistence of US officials for allegedly carrying out transactions with Iran despite US sanctions. Meng meanwhile has denied any wrongdoing. Last Wednesday, Meng was released on a 7.5 million bail on a condition that she has to stay in Canada. Meanwhile, Canadian PM Trudeau, in his strongest comments on the matter to date has said that China's detention of the two men is "not acceptable."

Third Canadian detained in China: Report

Global equity markets dipped on Tuesday as nervous investors awaited indications whether the Federal Reserve will be able to raise interest rates much further amid turbulent markets and a weakening outlook for the global economy.

Energy stocks weighed on the US&nbsp;market as oil price declines deepened.

Steep drops in equity markets over the last two months have sapped investor confidence, spurring fund managers to predict global growth to weaken over the next 12 months, the worst outlook in a decade, Bank of America Merrill Lynch's December investor survey showed.

MSCI's world stock index fell 0.3 per cent. The index is down 10 per cent this year and is set for its worst year in a decade.

US&nbsp;stocks eked out modest gains amid volatile trading as investors weighed strong tech earnings against concerns about global growth.

The Dow Jones Industrial Average&nbsp;rose 82.66 points, or 0.35 per cent, to 23,675.64, the S&amp;P 500 gained 0.22 points, or 0.01 per cent, to 2,546.16 and the Nasdaq Composite added 30.18 points, or 0.45 per cent, to 6,783.91.

The Dow had been up by more than 250 points in midday trading.

The benchmark S&amp;P 500&nbsp;index began the trading session almost 8 per cent lower for December.

"We're facing the biggest December fall in US&nbsp;stocks since 1931 and this is striking and worrying at the same time," said Chris Bailey, European strategist at international financial services firm Raymond James. "We are at a regime shift moment, and the debate is how big that regime shift will be."

A speech by Chinese President Xi Jinping, which investors had hoped could lift morale, had little impact after he offered no specific support measures for the economy. Chinese shares fell over 1 per cent. Japan's Nikkei lost 1.8 per cent.

Adding to the gloomy mood, the German Ifo economic institute's business climate index fell for the fourth month in a row to its lowest level in more than two years and Japan's government revised down its economic growth forecasts.

On Monday, US President Donald Trump and his top trade adviser stepped up their criticism of the Fed's monetary tightening, raising investor anxiety.

Benchmark 10-year notes last rose 9/32 in price to yield 2.8264 per cent, from 2.857 per cent late on Monday.

US&nbsp;crude futures settled down 7.3 per cent while Brent settled down 5.6 per cent, weakening for a third consecutive session on reports of swelling inventories and forecasts of record US&nbsp;and Russian output.

The dollar extended its declines against major currencies ahead of the Fed meeting. The dollar index &lt;.DXY&gt;, tracking it against six major peers, fell 0.03 per cent, with the euro&nbsp;up 0.14 per cent to $1.1362.

Global equity markets dipped on Tuesday as nervous investors awaited indications whether the Federal Reserve will be able to raise interest rates much further amid turbulent markets and a weakening outlook for the global economy.

Global equity markets dipped on Tuesday as nervous investors awaited indications whether the Federal Reserve will be able to raise interest rates much further amid turbulent markets and a weakening outlook for the global economy. Energy stocks weighed on the US market as oil price declines deepened. Steep drops in equity markets over the last two months have sapped investor confidence, spurring fund managers to predict global growth to weaken over the next 12 months, the worst outlook in a decade, Bank of America Merrill Lynch's December investor survey showed. MSCI's world stock index fell 0.3 per cent. The index is down 10 per cent this year and is set for its worst year in a decade. US stocks eked out modest gains amid volatile trading as investors weighed strong tech earnings against concerns about global growth. The Dow Jones Industrial Average rose 82.66 points, or 0.35 per cent, to 23,675.64, the S&P 500 gained 0.22 points, or 0.01 per cent, to 2,546.16 and the Nasdaq Composite added 30.18 points, or 0.45 per cent, to 6,783.91. The Dow had been up by more than 250 points in midday trading. The benchmark S&P 500 index began the trading session almost 8 per cent lower for December. "We're facing the biggest December fall in US stocks since 1931 and this is striking and worrying at the same time," said Chris Bailey, European strategist at international financial services firm Raymond James. "We are at a regime shift moment, and the debate is how big that regime shift will be." A speech by Chinese President Xi Jinping, which investors had hoped could lift morale, had little impact after he offered no specific support measures for the economy. Chinese shares fell over 1 per cent. Japan's Nikkei lost 1.8 per cent. Adding to the gloomy mood, the German Ifo economic institute's business climate index fell for the fourth month in a row to its lowest level in more than two years and Japan's government revised down its economic growth forecasts. On Monday, US President Donald Trump and his top trade adviser stepped up their criticism of the Fed's monetary tightening, raising investor anxiety. Benchmark 10-year notes last rose 9/32 in price to yield 2.8264 per cent, from 2.857 per cent late on Monday. US crude futures settled down 7.3 per cent while Brent settled down 5.6 per cent, weakening for a third consecutive session on reports of swelling inventories and forecasts of record US and Russian output. The dollar extended its declines against major currencies ahead of the Fed meeting. The dollar index <.DXY>, tracking it against six major peers, fell 0.03 per cent, with the euro up 0.14 per cent to $1.1362.

Global Markets: Stocks dip ahead of US interest rates, oil prices

<a href="http://www.wionews.com/business-economy/asian-markets-rise-ahead-of-key-meetings-in-china-and-us-184789">Asian share markets </a>slumped on Tuesday as heightened concerns about a <a href="http://www.wionews.com/business-economy/imf-says-trade-war-already-hurting-asia-may-cut-global-growth-forecasts-184777">slowing global economy</a> sent Wall Street stocks skidding to their lowest levels in more than a year.

MSCI's broadest index of Asia-Pacific shares outside Japan shed 0.3 per cent in mid-morning trade while Japan's Nikkei tumbled 1.2 per cent by the midday break.

Chinese shares opened in negative territory with the blue-chip index down 0.3 per cent and Hong Kong's Hang Seng index flat, while Australian shares fell 0.8 per cent.

MSCI's broadest gauge of the world's stock markets, ACWI, was down 0.05 per cent on Tuesday, after having hit its weakest level since May 2017 the previous day. It has declined 16 per cent from a top hit on January 29.

US stock futures rose 0.4 per cent in Asia following the previous session's sharp sell-off.

On Monday, the S&amp;P 500 lost 2.08 per cent to hit its lowest since October 2017 as it breached lows reached during a sell-off in February, having wiped out about $3.4 trillion of market value since late September.

The Nasdaq Composite dropped 2.27 per cent, with Amazon, one of the best performing shares this year, sliding 4.5 per cent.

A profit warning from ASOS, a previously high-flying UK online-clothing retailer, shocked investors, sending US consumer discretionary shares down 2.8 per cent

"US retailers have been stocking up consumer goods from China before hikes in tariff, piling up inventories. From now their costs are seen rising next year. That may have been kind of known to everyone but it's becoming reality," said Tatsushi Maeno, senior strategist at Okasan Asset Management.

In addition, the National Association of Home Builders Housing Market Index indicated U.S. homebuilder sentiment had fallen to a three-and-a-half-year low. It was the second consecutive month of disappointing reading.

The gloomy data came after weak economic news from China and Europe late last week.

The 10-year US&nbsp;Treasuries yield dropped to 2.853 per cent, edging near a Dec. 10 low of 2.825 per cent, its lowest level since late August.

FOCUS SHIFTS TO FED

The Federal Reserve is widely expected to raise interest rates on Wednesday, which would be its fourth hike this year.

But many investors now expect signs of economic turbulence to prompt the Fed to signal a slowdown in the pace of tightening next year.

On Monday, US President Donald Trump and his top trade adviser ratcheted up their criticism of the central bank's monetary tightening.

"It is incredible that with a very strong dollar and virtually no inflation, the outside world blowing up around us, Paris is burning and China way down, the Fed is even considering yet another interest rate hike. Take the Victory!" Trump wrote in a tweet.

White House trade adviser Peter Navarro amplified those remarks a few hours later, calling the Fed "crazy" for having signalled that it would continue to raise rates next year.

The Fed said in September that its policymakers see three more rate hikes in 2019 while money market futures are pricing in less than one such move.

"The major event between now and the end of the year is going to be what the Fed does tomorrow," said Jim McCafferty, Hong Kong-based head of Asia-ex-Japan equity research at Nomura.

"Given the pace of change of sentiment seen from not just companies but (also) from major macro-economies, I think there might be an outside chance that the Fed gives a more muted message in terms of growth and how aggressive it will be in terms of future rate hikes," he added.

The spectre of a "dovish rate hike" kept the dollar in check.

The euro traded slightly higher at $1.1355, after having gained 0.40 per cent on Monday.

The greenback gave up 0.1 per cent against the Japanese yen to 112.70 yen, adding to Monday's fall of nearly half a per cent.

The offshore Chinese yuan was slightly stronger at 6.8900 to the dollar.

Investors are awaiting details of a speech by President Xi Jinping to mark the 40th anniversary of China's market reforms.

China is also expected to hold its annual Central Economic Work Conference later this week, where key growth targets and policy goals for 2019 will be discussed.

Oil prices extended losses on signs of oversupply in the United States and as investor sentiment remained under pressure from concern over global economic growth and fuel demand.

<a href="http://www.wionews.com/business-economy/rupee-rises-37-paise-to-7119-against-us-dollar-on-falling-crude-prices-184949">US crude fell as low</a> as $49.01 per barrel on Monday, its lowest since September last year and last stood at $49.37, down 1.0 per cent on the day.

Brent crude oil futures lost 65 cents, or 1.1 percent, to $58.96 per barrel.

Asian share markets slumped on Tuesday as heightened concerns about a slowing global economy sent Wall Street stocks skidding to their lowest levels in more than a year.

Asian share markets slumped on Tuesday as heightened concerns about a slowing global economy sent Wall Street stocks skidding to their lowest levels in more than a year. MSCI's broadest index of Asia-Pacific shares outside Japan shed 0.3 per cent in mid-morning trade while Japan's Nikkei tumbled 1.2 per cent by the midday break. Chinese shares opened in negative territory with the blue-chip index down 0.3 per cent and Hong Kong's Hang Seng index flat, while Australian shares fell 0.8 per cent. MSCI's broadest gauge of the world's stock markets, ACWI, was down 0.05 per cent on Tuesday, after having hit its weakest level since May 2017 the previous day. It has declined 16 per cent from a top hit on January 29. US stock futures rose 0.4 per cent in Asia following the previous session's sharp sell-off. On Monday, the S&P 500 lost 2.08 per cent to hit its lowest since October 2017 as it breached lows reached during a sell-off in February, having wiped out about $3.4 trillion of market value since late September. The Nasdaq Composite dropped 2.27 per cent, with Amazon, one of the best performing shares this year, sliding 4.5 per cent. A profit warning from ASOS, a previously high-flying UK online-clothing retailer, shocked investors, sending US consumer discretionary shares down 2.8 per cent "US retailers have been stocking up consumer goods from China before hikes in tariff, piling up inventories. From now their costs are seen rising next year. That may have been kind of known to everyone but it's becoming reality," said Tatsushi Maeno, senior strategist at Okasan Asset Management. In addition, the National Association of Home Builders Housing Market Index indicated U.S. homebuilder sentiment had fallen to a three-and-a-half-year low. It was the second consecutive month of disappointing reading. The gloomy data came after weak economic news from China and Europe late last week. The 10-year US Treasuries yield dropped to 2.853 per cent, edging near a Dec. 10 low of 2.825 per cent, its lowest level since late August. FOCUS SHIFTS TO FED The Federal Reserve is widely expected to raise interest rates on Wednesday, which would be its fourth hike this year. But many investors now expect signs of economic turbulence to prompt the Fed to signal a slowdown in the pace of tightening next year. On Monday, US President Donald Trump and his top trade adviser ratcheted up their criticism of the central bank's monetary tightening. "It is incredible that with a very strong dollar and virtually no inflation, the outside world blowing up around us, Paris is burning and China way down, the Fed is even considering yet another interest rate hike. Take the Victory!" Trump wrote in a tweet. White House trade adviser Peter Navarro amplified those remarks a few hours later, calling the Fed "crazy" for having signalled that it would continue to raise rates next year. The Fed said in September that its policymakers see three more rate hikes in 2019 while money market futures are pricing in less than one such move. "The major event between now and the end of the year is going to be what the Fed does tomorrow," said Jim McCafferty, Hong Kong-based head of Asia-ex-Japan equity research at Nomura. "Given the pace of change of sentiment seen from not just companies but (also) from major macro-economies, I think there might be an outside chance that the Fed gives a more muted message in terms of growth and how aggressive it will be in terms of future rate hikes," he added. The spectre of a "dovish rate hike" kept the dollar in check. The euro traded slightly higher at $1.1355, after having gained 0.40 per cent on Monday. The greenback gave up 0.1 per cent against the Japanese yen to 112.70 yen, adding to Monday's fall of nearly half a per cent. The offshore Chinese yuan was slightly stronger at 6.8900 to the dollar. Investors are awaiting details of a speech by President Xi Jinping to mark the 40th anniversary of China's market reforms. China is also expected to hold its annual Central Economic Work Conference later this week, where key growth targets and policy goals for 2019 will be discussed. Oil prices extended losses on signs of oversupply in the United States and as investor sentiment remained under pressure from concern over global economic growth and fuel demand. US crude fell as low as $49.01 per barrel on Monday, its lowest since September last year and last stood at $49.37, down 1.0 per cent on the day. Brent crude oil futures lost 65 cents, or 1.1 percent, to $58.96 per barrel.

Asia stocks slide as global growth worries deepen

The global economy suffered a jolt in 2018 as world's two biggest economies - US and China - got involved in a trade war. Both the countries accuse each other of putting unfair tariffs on goods produced in respective countries.

The first step was taken by US President Donald Trump who announced increased tariffs on more than 1,300 Chinese industrial and other products, nine per cent of its total imports from China last year. There was no need to convince Trump who has long criticised China's trade practices. It was, in fact, a recurrent theme in his 2016 election campaign.

In response to Trump administration tariffs on Chinese goods, Beijing imposed levies on $50 billion worth of American imports, 36.7 per cent of its total imports from US in 2017. Among them was a 25 per cent tariff on soybeans, the single most valuable US farm export. US growers sold $12 billion worth to China last year alone.

Trump further escalated the trade dispute, threatening to identify Chinese imports worth $100 billion for a tariff increase. Trump's negotiating style, honed in his years as a real estate developer, is to take extreme positions to force concessions from his opponents. So far that approach has had mixed results at home and abroad.

A temporary truce came when Trump met with his Chinese counterpart President Xi Jinping on the sidelines of the G-20 summit in Buenos Aires on December 1 and agreed to stop escalating tit-for-tat tariffs that have disrupted the flow of hundreds of billions of dollars of goods between the world's two biggest economies.

Trump and Xi agreed to launch new talks while the United States delayed a planned January 1 tariff increase until March 2.

Since then, Beijing has resumed buying US soybeans, cut tariffs on imports of cars from the United States, and told its state refiners to buy more US oil. China also issued guidance to local governments dropping references to its "Made in China 2025" high-tech industrial development goals amid reports it was looking to replace the program aimed at rivaling US dominance in industries such as aerospace, robotics, semiconductors, new energy vehicles and artificial intelligence.

Trump took those as signs that "China wants to make a big and very comprehensive deal".

While Beijing claims that Washington is the aggressor and is spurring global protectionism, China's trading partners have complained for years that it abuses World Trade Organisation (WTO) rules and propagates unfair policies at home that lock foreign firms out of some sectors as domestic champions are being nurtured.

It is China's huge trade surplus with the United States that has attracted most of the Trump administration's ire. China ran a record $375.2 billion trade surplus with the United States in 2017 as the overall US trade deficit surged 12 per cent to $566 billion.

The global economy suffered a jolt in 2018 as world's two biggest economies - US and China - got involved in a trade war. Both the countries accuse each other of putting unfair tariffs on goods produced in respective countries.

The global economy suffered a jolt in 2018 as world's two biggest economies - US and China - got involved in a trade war. Both the countries accuse each other of putting unfair tariffs on goods produced in respective countries. The first step was taken by US President Donald Trump who announced increased tariffs on more than 1,300 Chinese industrial and other products, nine per cent of its total imports from China last year. There was no need to convince Trump who has long criticised China's trade practices. It was, in fact, a recurrent theme in his 2016 election campaign. In response to Trump administration tariffs on Chinese goods, Beijing imposed levies on $50 billion worth of American imports, 36.7 per cent of its total imports from US in 2017. Among them was a 25 per cent tariff on soybeans, the single most valuable US farm export. US growers sold $12 billion worth to China last year alone. Trump further escalated the trade dispute, threatening to identify Chinese imports worth $100 billion for a tariff increase. Trump's negotiating style, honed in his years as a real estate developer, is to take extreme positions to force concessions from his opponents. So far that approach has had mixed results at home and abroad. A temporary truce came when Trump met with his Chinese counterpart President Xi Jinping on the sidelines of the G-20 summit in Buenos Aires on December 1 and agreed to stop escalating tit-for-tat tariffs that have disrupted the flow of hundreds of billions of dollars of goods between the world's two biggest economies. Trump and Xi agreed to launch new talks while the United States delayed a planned January 1 tariff increase until March 2. Since then, Beijing has resumed buying US soybeans, cut tariffs on imports of cars from the United States, and told its state refiners to buy more US oil. China also issued guidance to local governments dropping references to its "Made in China 2025" high-tech industrial development goals amid reports it was looking to replace the program aimed at rivaling US dominance in industries such as aerospace, robotics, semiconductors, new energy vehicles and artificial intelligence. Trump took those as signs that "China wants to make a big and very comprehensive deal". While Beijing claims that Washington is the aggressor and is spurring global protectionism, China's trading partners have complained for years that it abuses World Trade Organisation (WTO) rules and propagates unfair policies at home that lock foreign firms out of some sectors as domestic champions are being nurtured. It is China's huge trade surplus with the United States that has attracted most of the Trump administration's ire. China ran a record $375.2 billion trade surplus with the United States in 2017 as the overall US trade deficit surged 12 per cent to $566 billion.

Explaining the US-China trade war which grabbed spotlight in 2018

China should lower next year's growth target to 6.0-6.5 per cent as headwinds including <a href="http://www.wionews.com/business-economy/imf-says-trade-war-already-hurting-asia-may-cut-global-growth-forecasts-184777">a trade dispute with the United States</a> increases risks for the economy, according to government advisers' recommendations to top leaders who will meet to map out the 2019 economic agenda.

This week's annual Central Economic Work Conference, a closed-door gathering of top party leaders and policymakers, is being watched by investors for any fresh policy steps to ward off a sharper slowdown in the world's second-largest economy.

The economic conference is likely to convene on Wednesday, two policy insiders said, a day after an event marking the 40th anniversary of China's reform and opening up, where President Xi Jinping is due to make what the official Xinhua news agency described as an "important" speech.

The meeting will not result in any public announcement of economic targets, which are usually reserved for the opening of the parliamentary session in early March.

China's trade war with the United States is spurring some Chinese entrepreneurs, government advisers and think tanks to call for faster economic reforms and the freeing up of a private sector stifled by state controls.

Government advisers and think tanks, which are influential in the decision-making process but aren't empowered to execute policies, have recommended a growth target of 6.0-6.5 per cent for 2019, versus around 6.5 per cent in 2018.

"Next year's growth target could be 6.0-6.5 per cent as the economy is likely to slow from this year," a policy insider who advises the government, said on condition of anonymity.

The Chinese Academy of Social Science, a top government think tank, has forecast growth to slow to 6.3 per cent in 2019 - which would be the weakest since 1990, from an estimated 6.6 per cent in 2018.

Some advisers suggested the government should be more tolerant of weaker growth, pushing reforms and avoiding strong policy stimulus that could worsen the country's debt problems.

Still, a growth rate of 6.0 per cent for next year is seen as the bottom line, amid concerns about employment due to pressures on the economy both domestically and on the external front.

"The economy is expected to slow next year, but the situation won't be very serious if we can manage it well, because room for expanding domestic demand is relatively big," said one adviser.

The State Council Information Office did not immediately respond to Reuters' request for comment.

POLICY SUPPORT

Last week, a meeting of the Politburo - a top decision-making body of the ruling Communist Party - pledged to keep China's economic growth within a "reasonable range" next year.

Growth in <a href="http://www.wionews.com/business-economy/asian-markets-rise-ahead-of-key-meetings-in-china-and-us-184789">Asia's powerhouse economy</a> slowed to 6.5 per cent in the third quarter, the weakest pace since the global financial crisis. Indications are that momentum is likely to come off further in the current quarter and next year, with data last week showing surprising softness in November factory output and retail sales.

Although full-year growth is expected to come just above 6.5 per cent in 2018, government officials and China watchers have already warned of greater risks to the economy next year from trade frictions with the United States.

China's monetary conditions should be relatively easy to support its slowing economy but policy cannot be too loose as falls in domestic interest rates could hit the local currency, central bank chief Yi Gang said last week.

The central bank is likely to deliver more cuts in banks' reserve requirement ratios, to add to the four reductions this year, but it may not rush to cut benchmark interest rates that could hurt the yuan, policy insiders said.

The government has pledged to cut taxes more aggressively next year, spurring a debate among Chinese economists on whether Beijing should expand its fiscal deficit ratio beyond 3 per cent next year. 
&nbsp;

China should lower next year's growth target to 6.0-6.5 per cent as headwinds including a trade dispute with the United States increases risks for the economy, according to government advisers' recommendations to top leaders who will meet to map out the 2019 economic agenda.

China should lower next year's growth target to 6.0-6.5 per cent as headwinds including a trade dispute with the United States increases risks for the economy, according to government advisers' recommendations to top leaders who will meet to map out the 2019 economic agenda. This week's annual Central Economic Work Conference, a closed-door gathering of top party leaders and policymakers, is being watched by investors for any fresh policy steps to ward off a sharper slowdown in the world's second-largest economy. The economic conference is likely to convene on Wednesday, two policy insiders said, a day after an event marking the 40th anniversary of China's reform and opening up, where President Xi Jinping is due to make what the official Xinhua news agency described as an "important" speech. The meeting will not result in any public announcement of economic targets, which are usually reserved for the opening of the parliamentary session in early March. China's trade war with the United States is spurring some Chinese entrepreneurs, government advisers and think tanks to call for faster economic reforms and the freeing up of a private sector stifled by state controls. Government advisers and think tanks, which are influential in the decision-making process but aren't empowered to execute policies, have recommended a growth target of 6.0-6.5 per cent for 2019, versus around 6.5 per cent in 2018. "Next year's growth target could be 6.0-6.5 per cent as the economy is likely to slow from this year," a policy insider who advises the government, said on condition of anonymity. The Chinese Academy of Social Science, a top government think tank, has forecast growth to slow to 6.3 per cent in 2019 - which would be the weakest since 1990, from an estimated 6.6 per cent in 2018. Some advisers suggested the government should be more tolerant of weaker growth, pushing reforms and avoiding strong policy stimulus that could worsen the country's debt problems. Still, a growth rate of 6.0 per cent for next year is seen as the bottom line, amid concerns about employment due to pressures on the economy both domestically and on the external front. "The economy is expected to slow next year, but the situation won't be very serious if we can manage it well, because room for expanding domestic demand is relatively big," said one adviser. The State Council Information Office did not immediately respond to Reuters' request for comment. POLICY SUPPORT Last week, a meeting of the Politburo - a top decision-making body of the ruling Communist Party - pledged to keep China's economic growth within a "reasonable range" next year. Growth in Asia's powerhouse economy slowed to 6.5 per cent in the third quarter, the weakest pace since the global financial crisis. Indications are that momentum is likely to come off further in the current quarter and next year, with data last week showing surprising softness in November factory output and retail sales. Although full-year growth is expected to come just above 6.5 per cent in 2018, government officials and China watchers have already warned of greater risks to the economy next year from trade frictions with the United States. China's monetary conditions should be relatively easy to support its slowing economy but policy cannot be too loose as falls in domestic interest rates could hit the local currency, central bank chief Yi Gang said last week. The central bank is likely to deliver more cuts in banks' reserve requirement ratios, to add to the four reductions this year, but it may not rush to cut benchmark interest rates that could hurt the yuan, policy insiders said. The government has pledged to cut taxes more aggressively next year, spurring a debate among Chinese economists on whether Beijing should expand its fiscal deficit ratio beyond 3 per cent next year.

As trade war bites, China advisers recommend lowering 2019 growth target

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

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

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

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

In a major policy shift, China is "going to open" up the entire country, <a href="http://www.wionews.com/world/us-demands-access-for-us-diplomats-journalists-to-tibet-threatening-to-bar-chinese-officials-183865">US President Donald Trump</a> said Thursday amidst trade negotiations with the Chinese.

"I just see this in the front page of The Wall Street Journal which just came out. China is going to open its policy, a big policy shift. They are going to open the whole country, that they want to please President Trump, that they want to do things that they have to do and that people should have been after China for years, I mean frankly," Trump told Fox News in an interview.

Trump last met his Chinese counterpart Xi Jinping in Buenos Aires on the sidelines of the G-20 Summit in Argentina on November 30 and December 1.

Following the dinner summit, the two leaders decided to give themselves 90 days' time to hammer out a trade deal that addresses the concerns of the United States with regard to trade balance and intellectual property thefts.

Top officials from the two countries started the talks this Monday.

"I have established a fantastic relationship with President Xi, who is the head of China, the absolute head of China, and I think we are going to work a fantastic deal for both countries, but a fantastic deal for us. We are going to get China to open up," Trump said in response to a question from Fox News.

If the Chinese economy was in trouble, it was only because of him, he said.

"That is the only reason it is in trouble because I have placed billions and billions -- we have taken in $11 billion worth of taxes that I taxed China.&nbsp;

(In the past) We have not made any money with China; we lost money with China," he said.&nbsp;

"In the last four months, we have taken in almost $11 billion of taxes. Nobody has ever heard of that. Nobody knows that. People do not report on that, they only report on nonsense," said the US president.

Asked why was he so confident about his deal with China, Trump said he knew what he was doing.

"I know what I am doing. I mean, it is business. Nobody ever went to China and said, 'Listen, you are stealing our intellectual property. You are doing all sorts of things that are wrong. You are taking out of our country $500 billion a year, not trillion, not million, you are $500 billion away, you cannot do it. You cannot take $500 billion out of our country," he said in response to a question.&nbsp;

In a major policy shift, China is "going to open" up the entire country, US President Donald Trump said Thursday amidst trade negotiations with the Chinese. "I just see this in the front page of The Wall Street Journal which just came out.

In a major policy shift, China is "going to open" up the entire country, US President Donald Trump said Thursday amidst trade negotiations with the Chinese. "I just see this in the front page of The Wall Street Journal which just came out. China is going to open its policy, a big policy shift. They are going to open the whole country, that they want to please President Trump, that they want to do things that they have to do and that people should have been after China for years, I mean frankly," Trump told Fox News in an interview. Trump last met his Chinese counterpart Xi Jinping in Buenos Aires on the sidelines of the G-20 Summit in Argentina on November 30 and December 1. Following the dinner summit, the two leaders decided to give themselves 90 days' time to hammer out a trade deal that addresses the concerns of the United States with regard to trade balance and intellectual property thefts. Top officials from the two countries started the talks this Monday. "I have established a fantastic relationship with President Xi, who is the head of China, the absolute head of China, and I think we are going to work a fantastic deal for both countries, but a fantastic deal for us. We are going to get China to open up," Trump said in response to a question from Fox News. If the Chinese economy was in trouble, it was only because of him, he said. "That is the only reason it is in trouble because I have placed billions and billions -- we have taken in $11 billion worth of taxes that I taxed China. (In the past) We have not made any money with China; we lost money with China," he said. "In the last four months, we have taken in almost $11 billion of taxes. Nobody has ever heard of that. Nobody knows that. People do not report on that, they only report on nonsense," said the US president. Asked why was he so confident about his deal with China, Trump said he knew what he was doing. "I know what I am doing. I mean, it is business. Nobody ever went to China and said, 'Listen, you are stealing our intellectual property. You are doing all sorts of things that are wrong. You are taking out of our country $500 billion a year, not trillion, not million, you are $500 billion away, you cannot do it. You cannot take $500 billion out of our country," he said in response to a question.

China going to open up whole country, they want to please me: Trump

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

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

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

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

Top Chinese and US negotiators held telephone talks on Tuesday to exchange views on the timetable of trade talks, the Chinese commerce ministry said.

Vice Premier Liu He spoke with US Treasury Secretary Steven Mnuchin and US Trade Representative Robert Lighthizer 10 days after presidents Donald Trump and Xi Jinping agreed to a trade war truce.

A 90-day deadline was set to reach an agreement, but no date has been set for the next round of talks and tensions have risen anew following Canada's arrest of an executive of Chinese telecom giant Huawei at the behest of the United States.

The commerce ministry said in a statement Liu and the US officials "exchanged views on the implementation of the consensus" reached by Trump and Xi as well as on the timetable for the next round of negotiations.

The brief statement did not provide more details.

Lighthizer said Sunday that March 1 was a "hard deadline" for the two sides to reach an agreement that would prevent an escalation of the trade war.

The world's top two economies have exchanged steep tariffs on more than $300 billion in total two-way trade, locking them in a conflict that has begun to eat into profits.&nbsp;

Trump has agreed to hold off on hiking tariffs to give space for negotiations.

Top Chinese and US negotiators held telephone talks on Tuesday to exchange views on the timetable of trade talks, the Chinese commerce ministry said. Vice Premier Liu He spoke with US Treasury Secretary Steven Mnuchin and US Trade Representative Robert Lighthizer 10 days after presidents Donald Trump and Xi Jinping agreed to a trade war truce.

Top Chinese and US negotiators held telephone talks on Tuesday to exchange views on the timetable of trade talks, the Chinese commerce ministry said. Vice Premier Liu He spoke with US Treasury Secretary Steven Mnuchin and US Trade Representative Robert Lighthizer 10 days after presidents Donald Trump and Xi Jinping agreed to a trade war truce. A 90-day deadline was set to reach an agreement, but no date has been set for the next round of talks and tensions have risen anew following Canada's arrest of an executive of Chinese telecom giant Huawei at the behest of the United States. The commerce ministry said in a statement Liu and the US officials "exchanged views on the implementation of the consensus" reached by Trump and Xi as well as on the timetable for the next round of negotiations. The brief statement did not provide more details. Lighthizer said Sunday that March 1 was a "hard deadline" for the two sides to reach an agreement that would prevent an escalation of the trade war. The world's top two economies have exchanged steep tariffs on more than $300 billion in total two-way trade, locking them in a conflict that has begun to eat into profits. Trump has agreed to hold off on hiking tariffs to give space for negotiations.

Chinese, US negotiators discuss trade talks timetable

US&nbsp;President Donald Trump on Friday sounded optimistic&nbsp;about trade negotiations with China as two of his top economic advisers downplayed friction from the <a href="http://www.wionews.com/world/huawei-arrest-a-despicable-rogue-action-chinese-media-182128">arrest of a senior executive of Chinese telecom </a>equipment maker Huawei Technologies.

"China talks are going very well," Trump said on Twitter, without providing any details.

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<blockquote class="twitter-tweet" data-lang="en">
China talks are going very well!
— Donald J. Trump (@realDonaldTrump) <a href="https://twitter.com/realDonaldTrump/status/1071030014123098112?ref_src=twsrc%5Etfw">December 7, 2018</a></blockquote>
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Major companies have expressed concerns about how the arrest of Huawei Chief Financial Officer Meng Wanzhou in Canada at the request of US&nbsp;authorities would affect <a href="http://www.wionews.com/opinions/g20-summit-bring-a-truce-in-us-china-trade-relations-181105">US-China relations</a> or that it would cause a potential backlash against American firms operating in China.

<a href="http://www.wionews.com/world/arrest-of-huawei-cfo-throws-rare-spotlight-on-family-181953">Meng</a>, 46, the daughter of Huawei's founder, appeared in a Vancouver court for a bail hearing as she awaits possible extradition to the United States in the investigation of whether Huawei violated US&nbsp;sanctions against Iran.

Larry Kudlow, director of the White House's National Economic Council, told CNBC he did not believe Meng's arrest would "spill over" into the talks with China aimed at increasing Beijing's purchases of US&nbsp;farm and energy commodities, lowering Chinese tariffs and making sweeping changes to China's policies on intellectual property and technology transfers.

Kudlow said the investigation of whether Huawei violated US&nbsp;sanctions against Iran was on a "separate track" from the trade talks and was a matter of national security and US&nbsp;law.

"You can’t break the law. You break the American law, you break the Canadian law, you’ve got to pay the consequences of that," Kudlow said of the Huawei case. "That was the case with other companies and will continue to be the case. These are issues of national security."

Continued concerns over US-China trade relations caused stocks to sell off on Friday, with technology shares leading the decline. The Nasdaq Composite fell 2.4 per cent, with the Dow Jones Industrial Average falling 2.1 per cent and the S&amp;P 500 index down 1.9 per cent in afternoon trade.

White House trade adviser Peter Navarro told CNN that the US-China trade talks and the Huawei arrest "are two separate events," calling the timing of Meng's arrest a coincidence.

Navarro said the arrest was the result of "the bad actions of Huawei," adding there was a "frightening" risk that the Chinese government could use the company's products for spying.

"The timing was unusual, but the actions were legitimate."

Asked if the United States would walk away from trade talks if US-China differences were not resolved in 90 days, Navaro said: "It's not a question of walking away. It's a question of moving forward on the strategy, which is to simply raise the tariffs" on Chinese goods.

Kudlow expressed optimism that the United States and China will make substantial progress during the 90-day period allocated for talks, ending around March 1.

"I think there will be a lot of success in the next 90 days; President has indicated, that if there’s good solid movement and there’s a good action, he might - he might - be willing to extend the 90 days," Kudlow told CNBC.

He reiterated that the Trump administration was expecting immediate movement from China on purchases of agricultural commodities and energy and added that he expected Chinese autos tariffs to be reduced. He said it was a positive sign that China was willing to discuss core issues related to intellectual property theft, forced technology transfers and computer hacking of U.S. companies.

However, Kudlow said US Trade Representative Robert Lighthizer, who will lead the American side in the talks, will be looking to ensure that any agreements can be fully enforced and monitored to ensure follow-through by Beijing.

US President Donald Trump on Friday sounded optimistic about trade negotiations with China as two of his top economic advisers downplayed friction from the arrest of a senior executive of Chinese telecom equipment maker Huawei Technologies.

US President Donald Trump on Friday sounded optimistic about trade negotiations with China as two of his top economic advisers downplayed friction from the arrest of a senior executive of Chinese telecom equipment maker Huawei Technologies. "China talks are going very well," Trump said on Twitter, without providing any details. China talks are going very well! — Donald J. Trump (@realDonaldTrump) December 7, 2018 × Major companies have expressed concerns about how the arrest of Huawei Chief Financial Officer Meng Wanzhou in Canada at the request of US authorities would affect US-China relations or that it would cause a potential backlash against American firms operating in China. Meng, 46, the daughter of Huawei's founder, appeared in a Vancouver court for a bail hearing as she awaits possible extradition to the United States in the investigation of whether Huawei violated US sanctions against Iran. Larry Kudlow, director of the White House's National Economic Council, told CNBC he did not believe Meng's arrest would "spill over" into the talks with China aimed at increasing Beijing's purchases of US farm and energy commodities, lowering Chinese tariffs and making sweeping changes to China's policies on intellectual property and technology transfers. Kudlow said the investigation of whether Huawei violated US sanctions against Iran was on a "separate track" from the trade talks and was a matter of national security and US law. "You can’t break the law. You break the American law, you break the Canadian law, you’ve got to pay the consequences of that," Kudlow said of the Huawei case. "That was the case with other companies and will continue to be the case. These are issues of national security." Continued concerns over US-China trade relations caused stocks to sell off on Friday, with technology shares leading the decline. The Nasdaq Composite fell 2.4 per cent, with the Dow Jones Industrial Average falling 2.1 per cent and the S&P 500 index down 1.9 per cent in afternoon trade. White House trade adviser Peter Navarro told CNN that the US-China trade talks and the Huawei arrest "are two separate events," calling the timing of Meng's arrest a coincidence. Navarro said the arrest was the result of "the bad actions of Huawei," adding there was a "frightening" risk that the Chinese government could use the company's products for spying. "The timing was unusual, but the actions were legitimate." Asked if the United States would walk away from trade talks if US-China differences were not resolved in 90 days, Navaro said: "It's not a question of walking away. It's a question of moving forward on the strategy, which is to simply raise the tariffs" on Chinese goods. Kudlow expressed optimism that the United States and China will make substantial progress during the 90-day period allocated for talks, ending around March 1. "I think there will be a lot of success in the next 90 days; President has indicated, that if there’s good solid movement and there’s a good action, he might - he might - be willing to extend the 90 days," Kudlow told CNBC. He reiterated that the Trump administration was expecting immediate movement from China on purchases of agricultural commodities and energy and added that he expected Chinese autos tariffs to be reduced. He said it was a positive sign that China was willing to discuss core issues related to intellectual property theft, forced technology transfers and computer hacking of U.S. companies. However, Kudlow said US Trade Representative Robert Lighthizer, who will lead the American side in the talks, will be looking to ensure that any agreements can be fully enforced and monitored to ensure follow-through by Beijing.

Trump upbeat on China talks; aides downplay Huawei arrest friction

Chinese telecom giant Huawei's chief financial officer faces US fraud charges related to sanctions-breaking business dealings with Iran, a Canadian court heard Friday, a week after she was <a href="http://www.wionews.com/world/huawei-cfo-arrested-in-canada-faces-extradition-to-us-181757">detained on an American extradition request</a>.

Meng Wanzhou, 46, was arrested in Canada's Pacific coast city of Vancouver on December 1 while changing planes during a trip from Hong Kong to Mexico -- ratcheting up tensions between the United States and China just as the countries' leaders agreed to a truce in their trade war.

A day-long hearing was adjourned until Monday, when the judge is expected to render a decision on bail. Until then, she will remain in custody.

<a href="http://www.wionews.com/world/huawei-arrest-canada-pm-justin-trudeau-defends-detaining-meng-wanzhou-182040">Canadian government </a>lawyer John Gibb-Carsley asked for bail to be denied, saying Meng has been accused of "conspiracy to defraud multiple financial institutions" and if convicted faces more than 30 years in prison.

She is specifically accused of lying to a US bank, identified by her lawyer as "Hong Kong Bank," about the use of a covert subsidiary to sell to Iran in breach of sanctions.

Meng had personally denied to bankers any direct connections between Huawei and the subsidiary, SkyCom, when in fact "SkyCom is Huawei," Gibb-Carsley said, putting the bank in jeopardy of violating sanctions. SkyCom's alleged sanctions breaches occurred from 2009 to 2014, while Meng's alleged fraudulent misrepresentations were in 2013.

Meng had been a member of SkyCom's board a decade ago, but the company was later sold, said her lawyer David Martin.

US authorities, however, claim Huawei continued to control the company, with Gibb-Carsley noting that SkyCom employees continued to carry Huawei identification and use its email.

He suggested that Meng has also shown a pattern of avoiding the United States over the past year since becoming aware of the investigation into the matter, arguing that she has no ties to Canada and has access to vast wealth and political connections -- and thus poses a flight risk.

Meng's detention in Canada came on the day of a summit at which US President Donald Trump and his Chinese counterpart Xi Jinping agreed to a truce in the escalating trade dispute between the two economic powerhouses.

China says Meng -- the daughter of Huawei founder Ren Zhengfei, a former engineer in China's People's Liberation Army -- has violated no laws in Canada or the United States and has demanded her release.

Washington and Beijing have exchanged steep tariffs on more than $300 billion in total two-way trade, locking them in a conflict that has begun to eat into profits.

Trump tweeted Friday that negotiations to defuse the high-stakes dispute were "going very well," but the messages since Meng's arrest have been mixed, roiling global stock markets.

Her appearance at the British Columbia Supreme Court in Vancouver is a prelude to an extradition process that could take months.

'Princess' of Huawei

CNN, quoting an unnamed official, said the United States saw the arrest as providing leverage in US-China trade talks -- although White House trade advisor Peter Navarro has denied any link to the dialogue.

On Friday, Beijing nevertheless alleged that Meng, known internally as the "princess" of Huawei and possible heir to the throne, had become a pawn in the dispute.

"The Chinese government should seriously mull over the US tendency to abuse legal procedures to suppress China's high-tech enterprises," said the nationalist tabloid Global Times in an editorial.

"Obviously, Washington is resorting to a despicable rogue's approach as it cannot stop Huawei's 5G advance in the market," it went on.

Meng spent most of the past week at a women's detention facility in a suburb of Vancouver.

If she is released on bail, she has agreed to surrender her passports and submit to electronic monitoring until she is discharged or surrendered for trial to the United States. All security costs would be borne by her.&nbsp;

The extradition process could take months, even years, if appeals are made in the case. The court heard Meng's husband Xiaozong Liu owns two mansions in the city.

Repeated setbacks

Canada has a longstanding extradition treaty with the United States, requiring it to cooperate with US Department of Justice requests to hand over suspects.

The offense for which extradition is being sought must also be a crime in Canada.

A Canadian court must decide if there is sufficient evidence to support the extradition, but then it is left to Canada's justice minister to sign the order.

On Thursday, Prime Minister Justin Trudeau defended Canada's arrest of Meng, saying politics played no part in the decision.

"I can assure everyone that we are a country (with) an independent judiciary," Trudeau told a tech conference in Montreal.

Huawei's affordable smartphones have made strong inroads in the developing world, but the company has faced repeated setbacks in major Western economies over security concerns.

Canadian officials have said Ottawa was continuing to review Huawei's technology for use in upcoming fifth-generation networks.

The company faces being shut out of Australia, New Zealand and US 5G rollouts, and British telecom group BT revealed on Wednesday it was removing Huawei equipment from its core cellular network.

The five nations together form the "Five Eyes" intelligence alliance.

Chinese telecom giant Huawei's chief financial officer faces US fraud charges related to sanctions-breaking business dealings with Iran, a Canadian court heard Friday, a week after she was detained on an American extradition request.

Chinese telecom giant Huawei's chief financial officer faces US fraud charges related to sanctions-breaking business dealings with Iran, a Canadian court heard Friday, a week after she was detained on an American extradition request. Meng Wanzhou, 46, was arrested in Canada's Pacific coast city of Vancouver on December 1 while changing planes during a trip from Hong Kong to Mexico -- ratcheting up tensions between the United States and China just as the countries' leaders agreed to a truce in their trade war. A day-long hearing was adjourned until Monday, when the judge is expected to render a decision on bail. Until then, she will remain in custody. Canadian government lawyer John Gibb-Carsley asked for bail to be denied, saying Meng has been accused of "conspiracy to defraud multiple financial institutions" and if convicted faces more than 30 years in prison. She is specifically accused of lying to a US bank, identified by her lawyer as "Hong Kong Bank," about the use of a covert subsidiary to sell to Iran in breach of sanctions. Meng had personally denied to bankers any direct connections between Huawei and the subsidiary, SkyCom, when in fact "SkyCom is Huawei," Gibb-Carsley said, putting the bank in jeopardy of violating sanctions. SkyCom's alleged sanctions breaches occurred from 2009 to 2014, while Meng's alleged fraudulent misrepresentations were in 2013. Meng had been a member of SkyCom's board a decade ago, but the company was later sold, said her lawyer David Martin. US authorities, however, claim Huawei continued to control the company, with Gibb-Carsley noting that SkyCom employees continued to carry Huawei identification and use its email. He suggested that Meng has also shown a pattern of avoiding the United States over the past year since becoming aware of the investigation into the matter, arguing that she has no ties to Canada and has access to vast wealth and political connections -- and thus poses a flight risk. Meng's detention in Canada came on the day of a summit at which US President Donald Trump and his Chinese counterpart Xi Jinping agreed to a truce in the escalating trade dispute between the two economic powerhouses. China says Meng -- the daughter of Huawei founder Ren Zhengfei, a former engineer in China's People's Liberation Army -- has violated no laws in Canada or the United States and has demanded her release. Washington and Beijing have exchanged steep tariffs on more than $300 billion in total two-way trade, locking them in a conflict that has begun to eat into profits. Trump tweeted Friday that negotiations to defuse the high-stakes dispute were "going very well," but the messages since Meng's arrest have been mixed, roiling global stock markets. Her appearance at the British Columbia Supreme Court in Vancouver is a prelude to an extradition process that could take months. 'Princess' of Huawei CNN, quoting an unnamed official, said the United States saw the arrest as providing leverage in US-China trade talks -- although White House trade advisor Peter Navarro has denied any link to the dialogue. On Friday, Beijing nevertheless alleged that Meng, known internally as the "princess" of Huawei and possible heir to the throne, had become a pawn in the dispute. "The Chinese government should seriously mull over the US tendency to abuse legal procedures to suppress China's high-tech enterprises," said the nationalist tabloid Global Times in an editorial. "Obviously, Washington is resorting to a despicable rogue's approach as it cannot stop Huawei's 5G advance in the market," it went on. Meng spent most of the past week at a women's detention facility in a suburb of Vancouver. If she is released on bail, she has agreed to surrender her passports and submit to electronic monitoring until she is discharged or surrendered for trial to the United States. All security costs would be borne by her. The extradition process could take months, even years, if appeals are made in the case. The court heard Meng's husband Xiaozong Liu owns two mansions in the city. Repeated setbacks Canada has a longstanding extradition treaty with the United States, requiring it to cooperate with US Department of Justice requests to hand over suspects. The offense for which extradition is being sought must also be a crime in Canada. A Canadian court must decide if there is sufficient evidence to support the extradition, but then it is left to Canada's justice minister to sign the order. On Thursday, Prime Minister Justin Trudeau defended Canada's arrest of Meng, saying politics played no part in the decision. "I can assure everyone that we are a country (with) an independent judiciary," Trudeau told a tech conference in Montreal. Huawei's affordable smartphones have made strong inroads in the developing world, but the company has faced repeated setbacks in major Western economies over security concerns. Canadian officials have said Ottawa was continuing to review Huawei's technology for use in upcoming fifth-generation networks. The company faces being shut out of Australia, New Zealand and US 5G rollouts, and British telecom group BT revealed on Wednesday it was removing Huawei equipment from its core cellular network. The five nations together form the "Five Eyes" intelligence alliance.

Huawei's Meng Wanzhou faces US fraud charges linked to Iran, bail hearing to continue on Monday

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

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

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

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

China's technology giant Huawei Technologies on Friday appointed Chairman Liang Hua as acting chief financial officer (CFO) following the <a href="http://www.wionews.com/world/huawei-cfo-arrested-in-canada-faces-extradition-to-us-181757">arrest of their present CFO Meng Wanzhou in Canada</a>, news agency Reuters reported.

Huawei CFO Meng Wanzhou, 46, who is also the daughter of the company founder, was arrested on December 1 -- same day when US Presidents Donald Trump and Chinese President Xi Jinping made a truce on trade war during G20 summit in Argentina.

She was arrested at the request of the United States and was revealed by Canadian authorities late on Wednesday. The arrest was part of a US investigation into an alleged scheme to use the global banking system to evade US sanctions against Iran

Also read:<a href="http://www.wionews.com/world/what-you-need-to-know-about-chinese-tech-giant-huawei-181879">&nbsp;What you need to know about Chinese tech giant Huawei</a>

She will appear in Vancouver court on Friday for a bail hearing as she awaits possible extradition to the United States.

With <a href="http://www.wionews.com/world/china-urges-immediate-release-of-huawei-cfo-meng-wanzhou-181949">China demanding the release of Meng,</a> Canadian Prime Minister Justin Trudeau distanced Canada from the arrest saying that the officers who arrested Meng while she was changing planes in Vancouver had acted on their own.

"I can assure everyone that we are a country (with) an independent judiciary," Trudeau told a tech conference in Montreal. "And they took this decision without any political involvement or interference."

Meanwhile, China has said that Meng, the daughter of Huawei<a href="http://www.wionews.com/world/arrest-of-huawei-cfo-throws-rare-spotlight-on-family-181953"> founder Ren Zhengfei</a>, a former engineer in China's People's Liberation Army, had violated no laws in either Canada or the United States.

Huawei has also denied any wrongdoing saying that it was compliant with "all applicable laws and regulations where it operates."

Huawei's affordable smartphones have made strong inroads in the developing world, but the company has faced repeated setbacks in major Western economies over security concerns.

(With inputs from news agencies)

China's technology giant Huawei Technologies on Friday appointed Chairman Liang Hua as acting chief financial officer (CFO) following the arrest of their present CFO Meng Wanzhou in Canada, news agency Reuters reported.

China's technology giant Huawei Technologies on Friday appointed Chairman Liang Hua as acting chief financial officer (CFO) following the arrest of their present CFO Meng Wanzhou in Canada, news agency Reuters reported. Huawei CFO Meng Wanzhou, 46, who is also the daughter of the company founder, was arrested on December 1 -- same day when US Presidents Donald Trump and Chinese President Xi Jinping made a truce on trade war during G20 summit in Argentina. She was arrested at the request of the United States and was revealed by Canadian authorities late on Wednesday. The arrest was part of a US investigation into an alleged scheme to use the global banking system to evade US sanctions against Iran Also read: What you need to know about Chinese tech giant Huawei She will appear in Vancouver court on Friday for a bail hearing as she awaits possible extradition to the United States. With China demanding the release of Meng, Canadian Prime Minister Justin Trudeau distanced Canada from the arrest saying that the officers who arrested Meng while she was changing planes in Vancouver had acted on their own. "I can assure everyone that we are a country (with) an independent judiciary," Trudeau told a tech conference in Montreal. "And they took this decision without any political involvement or interference." Meanwhile, China has said that Meng, the daughter of Huawei founder Ren Zhengfei, a former engineer in China's People's Liberation Army, had violated no laws in either Canada or the United States. Huawei has also denied any wrongdoing saying that it was compliant with "all applicable laws and regulations where it operates." Huawei's affordable smartphones have made strong inroads in the developing world, but the company has faced repeated setbacks in major Western economies over security concerns. (With inputs from news agencies)

China's Huawei appoints chairman as acting CFO after Meng Wanzhou's arrest

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

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

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

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

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

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

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

What you need to know about Chinese tech giant Huawei

<a href="http://www.wionews.com/india-news/pm-modi-meets-presdent-xi-takes-part-in-brics-meet-as-g20-summit-begins-180549">Chinese President Xi Jinping </a>has arrived in Panama which broke ties with Taiwan last year and switched its allegiance to Beijing for a visit aimed at extending his country's political and economic influence in Latin America.

Xi is set to meet Monday with Panamanian President Juan Carlos Varela, and sign an array of cooperation agreements. He will also meet with business leaders and visit the Panama Canal's new Cocoli Locks.

In a column written for the Estrella de Panama, a local newspaper, Xi said he had "high expectations" for the visit, the first ever by a Chinese leader to the country.

"We must be cooperative partners of mutual benefit and shared profits," wrote Xi, who arrived in <a href="https://www.wionews.com/world/uss-pompeo-to-visit-panama-mexico-to-discuss-venezuela-other-issues-171979">Panama </a>late Sunday from Argentina, where he attended the <a href="http://www.wionews.com/world/india-to-host-g20-summit-in-2022-pm-modi-announces-in-argentina-180796">G20 summit</a>.

Beijing hopes that Panama can be a logistics hub for the expansion of trade in Latin America and the Caribbean an idea that the business community here has fully embraced.

"Panama usually generates a lot of interest because of its strategic location in the region and because of the canal," Severo Sousa, president of the National Business Council (Conep), told AFP.

These factors along with Panama's political stability, growing economy and deep financial network are "very attractive" to China, Sousa added.

China is the second-biggest user of the Panama Canal after the United States.

Varela's government is hoping that Beijing will make multi-million-dollar investments in infrastructure projects. The two countries are negotiating a free trade agreement.

In June 2017, Panama established diplomatic relations with China, breaking off ties with Taiwan.

China and Taiwan have been governed separately since the end of a civil war on the mainland in 1949, but Beijing sees the island as part of its territory awaiting reunification.

Beijing and Taipei have been engaged for years in a diplomatic tug-of-war in developing countries, with aid and economic support often used as bargaining chips to gain diplomatic recognition.

Washington, which has accused the Chinese of trying to use aid to drive a wedge between Taipei and its Western Hemisphere partners, recalled its envoy to Panama City in September this year.

Varela, who visited China last year, promptly asked the US to respect his country's sovereignty.

Chinese President Xi Jinping has arrived in Panama which broke ties with Taiwan last year and switched its allegiance to Beijing for a visit aimed at extending his country's political and economic influence in Latin America.

Chinese President Xi Jinping has arrived in Panama which broke ties with Taiwan last year and switched its allegiance to Beijing for a visit aimed at extending his country's political and economic influence in Latin America. Xi is set to meet Monday with Panamanian President Juan Carlos Varela, and sign an array of cooperation agreements. He will also meet with business leaders and visit the Panama Canal's new Cocoli Locks. In a column written for the Estrella de Panama, a local newspaper, Xi said he had "high expectations" for the visit, the first ever by a Chinese leader to the country. "We must be cooperative partners of mutual benefit and shared profits," wrote Xi, who arrived in Panama late Sunday from Argentina, where he attended the G20 summit. Beijing hopes that Panama can be a logistics hub for the expansion of trade in Latin America and the Caribbean an idea that the business community here has fully embraced. "Panama usually generates a lot of interest because of its strategic location in the region and because of the canal," Severo Sousa, president of the National Business Council (Conep), told AFP. These factors along with Panama's political stability, growing economy and deep financial network are "very attractive" to China, Sousa added. China is the second-biggest user of the Panama Canal after the United States. Varela's government is hoping that Beijing will make multi-million-dollar investments in infrastructure projects. The two countries are negotiating a free trade agreement. In June 2017, Panama established diplomatic relations with China, breaking off ties with Taiwan. China and Taiwan have been governed separately since the end of a civil war on the mainland in 1949, but Beijing sees the island as part of its territory awaiting reunification. Beijing and Taipei have been engaged for years in a diplomatic tug-of-war in developing countries, with aid and economic support often used as bargaining chips to gain diplomatic recognition. Washington, which has accused the Chinese of trying to use aid to drive a wedge between Taipei and its Western Hemisphere partners, recalled its envoy to Panama City in September this year. Varela, who visited China last year, promptly asked the US to respect his country's sovereignty.

China's Xi in Panama on mission to bolster clout in Latin America

G20 Summit: Trump-Xi meet goes 'very well'

G20 Summit: Trump, Xi Jinping break the ice; discuss trade tensions

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

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

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

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

US President Donald Trump said he will have a meeting with Chinese President Xi Jinping on Saturday to discuss trade after the close of the G20 summit in Argentina.

"We will be meeting with President Xi tonight...and we'll be talking about a thing called trade and probably other things but primarily trade. It's a very important meeting," Trump said.

Trump also&nbsp;added that the death Friday of Bush, at 94, "really puts a damper on it, to be honest."

With markets watching nervously, Trump has described the talks as a deadline for China to meet his demands on opening up markets or risk more punitive tariffs.

Trump also said he would work to straighten out the trade imbalance in talks with German Chancellor Angela Merkel. Speaking alongside Trump at a joint news conference, Merkel added the two would address issues related to trade and the World Trade Organization, and discuss Ukraine, Syria, and the INF nuclear weapons pact with Russia.

US President Donald Trump said he will have a meeting with Chinese President Xi Jinping on Saturday to discuss trade after the close of the G20 summit in Argentina.

US President Donald Trump said he will have a meeting with Chinese President Xi Jinping on Saturday to discuss trade after the close of the G20 summit in Argentina. "We will be meeting with President Xi tonight...and we'll be talking about a thing called trade and probably other things but primarily trade. It's a very important meeting," Trump said. Trump also added that the death Friday of Bush, at 94, "really puts a damper on it, to be honest." With markets watching nervously, Trump has described the talks as a deadline for China to meet his demands on opening up markets or risk more punitive tariffs. Trump also said he would work to straighten out the trade imbalance in talks with German Chancellor Angela Merkel. Speaking alongside Trump at a joint news conference, Merkel added the two would address issues related to trade and the World Trade Organization, and discuss Ukraine, Syria, and the INF nuclear weapons pact with Russia.

G20 summit: Trump confirms meeting with China's Xi to discuss trade

Prime Minister Narendra&nbsp;Modi on the first day of G20 Summit in Argentina took part in BRICS informal meet<a href="http://www.wionews.com/india-news/g20-pm-modi-discusses-global-climate-change-with-un-secretary-general-180330"> and met </a><a href="http://www.wionews.com/world/g20-pm-modi-invites-president-xi-to-india-for-next-informal-summit-180529">Chinese&nbsp;President Xi Jinping</a>.

At the BRICS informal meet, which has become a tradition on the sidelines of G20, PM Modi raised the issue of terror and radicalisation. He said, "Terrorism and radicalism are a threat to the world, those who commit financial crimes are also a big threat. We have to work together against black money."

India has already been raising the issue of cross-border terrorism emanating&nbsp;from Pakistan from the various global forum.&nbsp;

Lauding <a href="http://www.wionews.com/india-news/yoga-connecting-india-argentina-pm-modi-180331">BRICS as a grouping</a>, PM said, "We have to talk in one voice for the interest of developing nations in the United Nations and other multilateral organisations. This is the reason we have come together for BRICS".

Last year, informal BRICS meet on the sidelines of 12th G20 summit in Hamburg helped India and China break the ice on the Doklam issue. Indian PM and Chinese president had met on the sidelines of that BRICS informal meet.

Later, PM Modi met the&nbsp;Chinese president - the fourth meeting between the two leaders in this&nbsp;year. PM said,&nbsp;"This has been a good year for bilateral ties".&nbsp;

Recalling the Wuhan informal summit, PM Modi said, "it was&nbsp;a&nbsp;milestone and&nbsp;engagement&nbsp;between the two countries got new&nbsp;momentum".

He also invited Chinese&nbsp;President Xi Jinping to India for the 2019 informal meet.&nbsp;

Recalling his meet with Chinese&nbsp;president on the sidelines of SCO summit in China and BRICS summit in South Africa, PM hoped the momentum in ties continued.

Later briefing the media, foreign Secretary Vijay Gokhale said, "fourth meeting between PM Modi and Chinese President Xi made progress on the economic side. On the political side as well both leaders&nbsp;felt that there has been a&nbsp;progress on border management, counter-terrorism agenda and people to people issues".

China is willing to exchange more on the hydrological issue. Remember India was alerted on Brahmaputra flow issue earlier this year. Both sides are also training Afghan diplomats as part of a first joint project between India and China agreed during the Wuhan summit.

Prime Minister Narendra Modi on the first day of G20 Summit in Argentina took part in BRICS informal meet and met Chinese President Xi Jinping. At the BRICS informal meet, which has become a tradition on the sidelines of G20, PM Modi raised the issue of terror and radicalisation.

Prime Minister Narendra Modi on the first day of G20 Summit in Argentina took part in BRICS informal meet and met Chinese President Xi Jinping. At the BRICS informal meet, which has become a tradition on the sidelines of G20, PM Modi raised the issue of terror and radicalisation. He said, "Terrorism and radicalism are a threat to the world, those who commit financial crimes are also a big threat. We have to work together against black money." India has already been raising the issue of cross-border terrorism emanating from Pakistan from the various global forum. Lauding BRICS as a grouping, PM said, "We have to talk in one voice for the interest of developing nations in the United Nations and other multilateral organisations. This is the reason we have come together for BRICS". Last year, informal BRICS meet on the sidelines of 12th G20 summit in Hamburg helped India and China break the ice on the Doklam issue. Indian PM and Chinese president had met on the sidelines of that BRICS informal meet. Later, PM Modi met the Chinese president - the fourth meeting between the two leaders in this year. PM said, "This has been a good year for bilateral ties". Recalling the Wuhan informal summit, PM Modi said, "it was a milestone and engagement between the two countries got new momentum". He also invited Chinese President Xi Jinping to India for the 2019 informal meet. Recalling his meet with Chinese president on the sidelines of SCO summit in China and BRICS summit in South Africa, PM hoped the momentum in ties continued. Later briefing the media, foreign Secretary Vijay Gokhale said, "fourth meeting between PM Modi and Chinese President Xi made progress on the economic side. On the political side as well both leaders felt that there has been a progress on border management, counter-terrorism agenda and people to people issues". China is willing to exchange more on the hydrological issue. Remember India was alerted on Brahmaputra flow issue earlier this year. Both sides are also training Afghan diplomats as part of a first joint project between India and China agreed during the Wuhan summit.

PM Modi meets President Xi, takes part in BRICS meet as G20 summit begins

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