White House economic adviser Larry Kudlow has played down reports of a breakthrough in US-China trade talks, but said progress had been made.

"We've made some progress with China in the deputy's meeting in Beijing," Larry Kudlow, director of the National Economic Council, told Fox Business.&nbsp;

But he added, "Nothing has been resolved, nothing on paper, no contracts."

Recent news reports of a deal being imminent were not accurate, he said.

Bloomberg had reported earlier Friday that Beijing had offered to eliminate its soaring trade surplus with the United States in five years.

The US sent a delegation led by Deputy Trade Representative Jeffrey Gerrish to Beijing earlier this month, where they held talks with China's foreign ministry to seek ways to end their trade war.

China's chief negotiator on trade disputes with the United States, Vice Premier Liu He, is due in Washington on January 30 and 31 for the next round talks.

In December, President Trump and Chinese leader Xi Jinping agreed to a truce in their three-month trade war.

Washington suspended plans to increase tariffs on Chinese goods, to give negotiators space to find a solution to the dispute, which has triggered fears of a global economic slowdown.

White House economic adviser Larry Kudlow has played down reports of a breakthrough in US-China trade talks, but said progress had been made. "We've made some progress with China in the deputy's meeting in Beijing," Larry Kudlow, director of the National Economic Council, told Fox Business.

White House economic adviser Larry Kudlow has played down reports of a breakthrough in US-China trade talks, but said progress had been made. "We've made some progress with China in the deputy's meeting in Beijing," Larry Kudlow, director of the National Economic Council, told Fox Business. But he added, "Nothing has been resolved, nothing on paper, no contracts." Recent news reports of a deal being imminent were not accurate, he said. Bloomberg had reported earlier Friday that Beijing had offered to eliminate its soaring trade surplus with the United States in five years. The US sent a delegation led by Deputy Trade Representative Jeffrey Gerrish to Beijing earlier this month, where they held talks with China's foreign ministry to seek ways to end their trade war. China's chief negotiator on trade disputes with the United States, Vice Premier Liu He, is due in Washington on January 30 and 31 for the next round talks. In December, President Trump and Chinese leader Xi Jinping agreed to a truce in their three-month trade war. Washington suspended plans to increase tariffs on Chinese goods, to give negotiators space to find a solution to the dispute, which has triggered fears of a global economic slowdown.

No breakthrough in US-China trade talks: Trump adviser

<a href="https://www.google.com/url?q=http://www.wionews.com/opinions/why-there-will-be-no-winners-from-the-us-china-trade-war-191220&amp;sa=U&amp;ved=0ahUKEwibl46ClfffAhUFQH0KHX_NBDUQFggFMAA&amp;client=internal-uds-cse&amp;cx=006054055338965708568:09spwrlibei&amp;usg=AOvVaw3otA3INlmP6sCB8rwcjZGA">China</a>'s economy grew at its slowest pace in almost three decades in 2018, analysts in an AFP poll said, as the government struggles to contain ballooning debt and a bruising trade war with the United States.

And in a sign of the battle Beijing faces in getting things back on track, the survey of 13 economists also forecast expansion in the last three months to be at its weakest since the global financial crisis 10 years ago.

The figures are the latest in a long-running trend that has prompted officials to vow they will not let the economy "fall off a cliff" and announce support measures including tax cuts and making it easier for banks to lend.

The full-year figure of 6.6 per cent would be the worst since 1990 when the economy was hit by outrage over the Tiananmen Square crackdown a year earlier.

The October-December rate of 6.4 per cent marks the slowest quarter since 2009 and indicates China faces a tough year ahead.

"Economic momentum is clearly slowing," said Raymond Yeung, an economist at ANZ bank.

Economists in China and abroad have long suspected data is massaged upward, often noting that full-year gross domestic product hits Beijing's pre-set targets with suspicious regularity.

A widely respected global business think tank, the US-based Conference Board, says its methodology indicates growth of 4.1 per cent growth for the year.

Relations with a top trading partner the United States deteriorated sharply last year after <a href="https://www.google.com/url?q=http://www.wionews.com/world/trump-says-record-long-government-shutdown-could-be-resolved-in-15-minutes-189918&amp;sa=U&amp;ved=0ahUKEwiu1YmflfffAhWLqY8KHb1HB_cQFggFMAA&amp;client=internal-uds-cse&amp;cx=006054055338965708568:09spwrlibei&amp;usg=AOvVaw2WItk1bJRC5Ldh7JuLUsA-">President Donald Trump</a> hit roughly half of the Chinese imports with new tariffs in an attempt to force trade concessions from Beijing.

The trade war with the US is on hold for now after President Xi Jinping and Donald Trump agreed to a three-month ceasefire while the two sides try to find a resolution.

China's top negotiator is heading to Washington for talks this month ahead of a March deadline to avoid further tariff hikes, while a report said the US is considering lifting some levies in return for reforms by Beijing.

While analysts say the standoff has dented confidence — leaving the stock markets battered and the yuan weakened — they attribute most the downturn to government policies to tackle growing debt, financial risk, and pollution.

Stimulus measures 
&nbsp; 
The 2018 growth forecast is above the official target of around 6.5 per cent but down from the 6.8 per cent chalked up in the year before — after officials on Friday revised down the 2017 figure.&nbsp;

The National Bureau of Statistics will release its official results on Monday.

After halting some major infrastructure<a href="https://www.google.com/url?q=http://www.wionews.com/india-news/government-clears-rs-4242-crore-it-filing-project-selects-infosys-as-developer-190802&amp;sa=U&amp;ved=0ahUKEwi62J6xlfffAhXKQY8KHVusBC8QFggFMAA&amp;client=internal-uds-cse&amp;cx=006054055338965708568:09spwrlibei&amp;usg=AOvVaw1Ah_DbpMf6YyZ__4swefIq"> project</a>s such as subway lines and motorways in the first half of the year to keep a lid on debt, policymakers gradually eased up and encouraged more infrastructure spending in the autumn.

"The squeeze on shadow financing activity took a particularly heavy toll on infrastructure investment," economists at Fitch Ratings wrote in a report, referring to off-the-books loans.

Analysts say the credit tightening also made loans harder to come by for some would-be car buyers, which contributed to annual car sales falling for the first time in more than 20 years.

It is one of a raft of recent economic indicators that point to a deepening slowdown. Imports and exports fell in December while the manufacturing sector contracted for the first time in more than two years.

Chinese officials have announced tax cuts, fee reductions, and cutting red tape, among other measures to stimulate the economy.

"We propose to keep the Chinese economy operating in a reasonable range, which means that we allow the economic growth rate to have certain fluctuations," Chinese Premier Li Keqiang told academics and businessmen this week.

"But it cannot have major ups and major downs, and it cannot 'fall off a cliff'," he said.

'Sword of Damocles'&nbsp;

Li vowed to help private businesses and "take advantage of our massive domestic <a href="https://www.google.com/url?q=http://www.wionews.com/business-economy/pound-stands-firm-after-may-loss-asian-equity-markets-rise-190681&amp;sa=U&amp;ved=0ahUKEwjRldD4lfffAhVIqI8KHRw5B-QQFggFMAA&amp;client=internal-uds-cse&amp;cx=006054055338965708568:09spwrlibei&amp;usg=AOvVaw3ixutNsCQbGuNL0Q91UIzE">market</a>".

With officials intent on not further inflating the debt bubble, and the export picture dimming, it has reinforced the need for China to rely on its legion of consumers to grow its economy.

"We see a fast deceleration on investment and also retail sales, which weigh on the growth slowdown," said Liu Ligang, chief China economist at Citigroup.

"The financial deleveraging made it really hard for the private sectors to get funding," he said.

Exports still drive a significant chunk of China's economy and Washington's targeting of cars, machinery, electronics, consumer appliances, and other products have led some firms to shift production out of the country.

Most exporters sped up their shipments across the Pacific to beat the tariff deadlines, with exports to the US holding up until November.&nbsp;

"The trade war with the US should be regarded as a ... Sword of Damocles for the Chinese economy, but its impact is only really visible in the very last months of 2018," said Bjorn Giesbergen, senior economist at Rabobank.

China's economy grew at its slowest pace in almost three decades in 2018, analysts in an AFP poll said, as the government struggles to contain ballooning debt and a bruising trade war with the United States.

China's economy grew at its slowest pace in almost three decades in 2018, analysts in an AFP poll said, as the government struggles to contain ballooning debt and a bruising trade war with the United States. And in a sign of the battle Beijing faces in getting things back on track, the survey of 13 economists also forecast expansion in the last three months to be at its weakest since the global financial crisis 10 years ago. The figures are the latest in a long-running trend that has prompted officials to vow they will not let the economy "fall off a cliff" and announce support measures including tax cuts and making it easier for banks to lend. The full-year figure of 6.6 per cent would be the worst since 1990 when the economy was hit by outrage over the Tiananmen Square crackdown a year earlier. The October-December rate of 6.4 per cent marks the slowest quarter since 2009 and indicates China faces a tough year ahead. "Economic momentum is clearly slowing," said Raymond Yeung, an economist at ANZ bank. Economists in China and abroad have long suspected data is massaged upward, often noting that full-year gross domestic product hits Beijing's pre-set targets with suspicious regularity. A widely respected global business think tank, the US-based Conference Board, says its methodology indicates growth of 4.1 per cent growth for the year. Relations with a top trading partner the United States deteriorated sharply last year after President Donald Trump hit roughly half of the Chinese imports with new tariffs in an attempt to force trade concessions from Beijing. The trade war with the US is on hold for now after President Xi Jinping and Donald Trump agreed to a three-month ceasefire while the two sides try to find a resolution. China's top negotiator is heading to Washington for talks this month ahead of a March deadline to avoid further tariff hikes, while a report said the US is considering lifting some levies in return for reforms by Beijing. While analysts say the standoff has dented confidence — leaving the stock markets battered and the yuan weakened — they attribute most the downturn to government policies to tackle growing debt, financial risk, and pollution. Stimulus measures The 2018 growth forecast is above the official target of around 6.5 per cent but down from the 6.8 per cent chalked up in the year before — after officials on Friday revised down the 2017 figure. The National Bureau of Statistics will release its official results on Monday. After halting some major infrastructure projects such as subway lines and motorways in the first half of the year to keep a lid on debt, policymakers gradually eased up and encouraged more infrastructure spending in the autumn. "The squeeze on shadow financing activity took a particularly heavy toll on infrastructure investment," economists at Fitch Ratings wrote in a report, referring to off-the-books loans. Analysts say the credit tightening also made loans harder to come by for some would-be car buyers, which contributed to annual car sales falling for the first time in more than 20 years. It is one of a raft of recent economic indicators that point to a deepening slowdown. Imports and exports fell in December while the manufacturing sector contracted for the first time in more than two years. Chinese officials have announced tax cuts, fee reductions, and cutting red tape, among other measures to stimulate the economy. "We propose to keep the Chinese economy operating in a reasonable range, which means that we allow the economic growth rate to have certain fluctuations," Chinese Premier Li Keqiang told academics and businessmen this week. "But it cannot have major ups and major downs, and it cannot 'fall off a cliff'," he said. 'Sword of Damocles' Li vowed to help private businesses and "take advantage of our massive domestic market". With officials intent on not further inflating the debt bubble, and the export picture dimming, it has reinforced the need for China to rely on its legion of consumers to grow its economy. "We see a fast deceleration on investment and also retail sales, which weigh on the growth slowdown," said Liu Ligang, chief China economist at Citigroup. "The financial deleveraging made it really hard for the private sectors to get funding," he said. Exports still drive a significant chunk of China's economy and Washington's targeting of cars, machinery, electronics, consumer appliances, and other products have led some firms to shift production out of the country. Most exporters sped up their shipments across the Pacific to beat the tariff deadlines, with exports to the US holding up until November. "The trade war with the US should be regarded as a ... Sword of Damocles for the Chinese economy, but its impact is only really visible in the very last months of 2018," said Bjorn Giesbergen, senior economist at Rabobank.

China growth hit slowest pace in decades in 2018: Report

President Donald Trump said Monday he expects to be able to reach a trade deal with China, which is feeling the impact of US tariffs.

"We are doing very well with China. They're having a hard with their economy because of the tariffs," Trump told reporters at the White House.&nbsp;

"I think that we are going to be able to do a deal with China."&nbsp;

US officials were in Beijing last week for talks aimed at ending the bruising trade confrontation that has subjected more than $350 billion in two-way trade to steep tariffs.

Chinese officials said the next round of negotiations would be held in Washington between January 30 and 31.

Trump and Chinese leader Xi Jinping agreed on December 1 to a three-month truce in the escalating spat.

"I can tell you we are getting things that before I became president you would have had no chance at getting," Trump said. "They would have laughed in your president's face."

As Trump has pressed Beijing to increase imports of US goods, China's trade surplus with the United States hit a record last year of $323.3 billion, an 11 per cent increase over 2017, according to Chinese customs data released Monday.

However, in a sign that the White House's punitive measures are having an impact, China's exports to the US sank last month.&nbsp;

And China's total exports fell 4.4 per cent in December from a year earlier, while imports dropped 7.6 per cent, reflecting sluggish demand at home and abroad.

President Donald Trump said Monday he expects to be able to reach a trade deal with China, which is feeling the impact of US tariffs. "We are doing very well with China.

President Donald Trump said Monday he expects to be able to reach a trade deal with China, which is feeling the impact of US tariffs. "We are doing very well with China. They're having a hard with their economy because of the tariffs," Trump told reporters at the White House. "I think that we are going to be able to do a deal with China." US officials were in Beijing last week for talks aimed at ending the bruising trade confrontation that has subjected more than $350 billion in two-way trade to steep tariffs. Chinese officials said the next round of negotiations would be held in Washington between January 30 and 31. Trump and Chinese leader Xi Jinping agreed on December 1 to a three-month truce in the escalating spat. "I can tell you we are getting things that before I became president you would have had no chance at getting," Trump said. "They would have laughed in your president's face." As Trump has pressed Beijing to increase imports of US goods, China's trade surplus with the United States hit a record last year of $323.3 billion, an 11 per cent increase over 2017, according to Chinese customs data released Monday. However, in a sign that the White House's punitive measures are having an impact, China's exports to the US sank last month. And China's total exports fell 4.4 per cent in December from a year earlier, while imports dropped 7.6 per cent, reflecting sluggish demand at home and abroad.

I think we are going to be able to do trade deal with China: Trump

The history of trade relations between China and the Arab world goes back to centuries. In ancient times, the Ottoman and Arab empires were the bridge between east and west along the Silk Road and it is the very trade route, Beijing now aims to revive.&nbsp;

West Asia is central to China's belt and road initiative, Chinese President Xi Jinping in his six-year tenure has personally put a lot of effort into enhancing ties with the Arab world.

His strategy is based on four main pillars -- energy cooperation, infrastructure, trade facilitation and technology.

Seaports are the gateway for the Chinese belt and road initiative -- and Washington is increasingly worried since Beijing is courting long-standing American ally.

In the recent visit to Israel, US national security advisor John Bolton had China on top of the agenda.

During his visit, Bolton expressed concerns about the transfer of Israel's military technology to China, and about possible eavesdropping on callers using Chinese equipment, in particular, Huawei.&nbsp;

The Shanghai international port group, in which the Chinese government has the majority stake, will take control over the Israeli port of Haifa in 2021.

Chinese companies are completing the new container terminal in the Khalifa port which is set to double its capacity.

The bilateral trade is expected to reach 58 billion dollars in 2019.&nbsp;

China buys 70 per cent of its oil from the gulf and is working on free trade. Meanwhile, the UAE &nbsp;has granted shares of onshore and offshore oil blocks to Beijing. &nbsp;

No wonder, Xi Jinping was the first Chinese president to visit the Emirates in 30 years.&nbsp;

But this is not only about the oil-rich Gulf.

China promised investments worth 90 million dollars in Jordan, Lebanon, Syria and Yemen.

Jordan is in advanced talks with China national nuclear corporation to build its first nuclear reactor.&nbsp;

Shifting from the traditional non-interference strategy, Beijing has also stepped into the long-standing Palestinian issue. &nbsp;

Last year in July Chinese President announced $15 million in aid to Palestine to "support the development of its economy".

"China will provide 100 million yuan ($15 million) in aid for Palestine to support the development of its economy and improve its people's livelihoods. China will also provide emergency humanitarian aid for Palestine.”

Palestine imports five-hundreds million dollars worth of Chinese goods every year. China is also the second largest supplier to the isolated Gaza Strip.

Beijing also supports the establishment of an independent Palestinian state with east Jerusalem as its capital and in return, Arab countries adhere to the one-China policy avoiding any relationship with Taiwan.

Meanwhile, the Indian government is aware of China's territorial game in West Asia.

Prime Minister Narendra Modi has travelled five times to the region to secure agreements with the Gulf countries, which are India's traditional economic partners.

However, New Delhi must keep looking west if it wants to effectively counter China's aggressive designs on the region.&nbsp;

The history of trade relations between China and the Arab world goes back to centuries. In ancient times, the Ottoman and Arab empires were the bridge between east and west along the Silk Road and it is the very trade route, Beijing now aims to revive.

The history of trade relations between China and the Arab world goes back to centuries. In ancient times, the Ottoman and Arab empires were the bridge between east and west along the Silk Road and it is the very trade route, Beijing now aims to revive. West Asia is central to China's belt and road initiative, Chinese President Xi Jinping in his six-year tenure has personally put a lot of effort into enhancing ties with the Arab world. His strategy is based on four main pillars -- energy cooperation, infrastructure, trade facilitation and technology. Seaports are the gateway for the Chinese belt and road initiative -- and Washington is increasingly worried since Beijing is courting long-standing American ally. In the recent visit to Israel, US national security advisor John Bolton had China on top of the agenda. During his visit, Bolton expressed concerns about the transfer of Israel's military technology to China, and about possible eavesdropping on callers using Chinese equipment, in particular, Huawei. The Shanghai international port group, in which the Chinese government has the majority stake, will take control over the Israeli port of Haifa in 2021. Chinese companies are completing the new container terminal in the Khalifa port which is set to double its capacity. The bilateral trade is expected to reach 58 billion dollars in 2019. China buys 70 per cent of its oil from the gulf and is working on free trade. Meanwhile, the UAE has granted shares of onshore and offshore oil blocks to Beijing. No wonder, Xi Jinping was the first Chinese president to visit the Emirates in 30 years. But this is not only about the oil-rich Gulf. China promised investments worth 90 million dollars in Jordan, Lebanon, Syria and Yemen. Jordan is in advanced talks with China national nuclear corporation to build its first nuclear reactor. Shifting from the traditional non-interference strategy, Beijing has also stepped into the long-standing Palestinian issue. Last year in July Chinese President announced $15 million in aid to Palestine to "support the development of its economy". "China will provide 100 million yuan ($15 million) in aid for Palestine to support the development of its economy and improve its people's livelihoods. China will also provide emergency humanitarian aid for Palestine.” Palestine imports five-hundreds million dollars worth of Chinese goods every year. China is also the second largest supplier to the isolated Gaza Strip. Beijing also supports the establishment of an independent Palestinian state with east Jerusalem as its capital and in return, Arab countries adhere to the one-China policy avoiding any relationship with Taiwan. Meanwhile, the Indian government is aware of China's territorial game in West Asia. Prime Minister Narendra Modi has travelled five times to the region to secure agreements with the Gulf countries, which are India's traditional economic partners. However, New Delhi must keep looking west if it wants to effectively counter China's aggressive designs on the region.

How China is stepping up investments in West Asia

<a href="http://www.wionews.com/world/north-koreas-kim-discusses-expected-summit-with-trump-in-talks-in-china-report-189075">Kim Jong Un's train left Beijing </a>on Wednesday after the North Korean leader visited his key ally on a trip seen as a strategy session ahead of his expected summit with Donald Trump.

<a href="http://www.wionews.com/world/kim-jong-un-seeks-to-up-ante-with-xi-summit-analysts-189006">Kim arrived in Beijing on Tuesday </a>for his fourth visit to Pyongyang's sole major diplomatic friend, reportedly visiting a factory and meeting President Xi Jinping.

The North Korean leader's <a href="http://www.wionews.com/world/kim-jong-un-on-4-day-visit-to-china-to-meet-president-xi-report-188901">motorcade was spotted arriving at the Beijing </a>central railway station early afternoon, and the train departed shortly after on a day-long ride back to the northeast border, according to AFP journalists.

The unannounced trip was largely shrouded in secrecy. Beyond confirming his presence in Beijing, no details have been provided by either North Korea or China on his schedule.

Kim met for one hour with Chinese President Xi Jinping on Tuesday - believed to be the North Korean leader's birthday - and the two later dined with their wives at Beijing's Great Hall of the People, according to South Korea's Yonhap news agency.

The meeting focused on Kim's expected meeting with Trump, according to Yonhap.

In a New Year speech, Kim warned that Pyongyang may change its approach to nuclear talks if Washington persists with sanctions.

Relations between China and North Korea had deteriorated in recent years over Pyongyang's nuclear activities, but Kim has made sure to keep Xi informed about his dealings with the United States and South Korea as ties appear to have warmed.

"In order to resist the high pressure of the US, he must communicate with Xi in advance to see what steps he can take to deal with Trump," Beijing-based independent political commentator Hua Po told AFP.

"Kim needs the support of Xi so as to ask the US to make substantial steps, such as providing assistance to North Korea and normalising relations with North Korea," Hua said.

Kim chose China for his maiden official trip abroad last year before holding meetings with South Korean President Moon Jae-in and Trump.

Trump said Sunday that the United States and North Korea are negotiating the location of their next summit.

Discussions between the US and North Korea over Pyongyang's nuclear arsenal have stalled since Kim and Trump's high-profile summit in Singapore in June where they issued a vaguely worded declaration about denuclearisation.

The United States insists that United Nations sanctions must remain in place until North Korea gives up its weapons, while Pyongyang wants them immediately eased. China also wants the sanctions to be relaxed.

But Chinese officials also likely want to impress on Kim — who has so far pursued only limited reforms to his statist economy — the benefits the giant Communist country has enjoyed in its transformation from an impoverished nation to economic powerhouse.

Yonhap, citing unidentified sources, reported that Kim toured a factory operated by medicine firm Tongrentang for about half an hour in an economic zone in the Chinese capital.

He then went to the Beijing Hotel where he was expected to have lunch with Xi before his departure.

"For North Korea itself, 2019 is his strategic turning point. If he wants to shift his focus to the development of the economy, he needs China's cooperation," said Lu Chao, a North Korea expert at China's Liaoning Academy of Social Sciences.

"China will also introduce some successful experiences to Kim to help North Korea achieve economic transformation and realise the denuclearisation of the peninsula as soon as possible," Lu told AFP.

In the New Year speech, Kim focused on North Korea's moribund economy, saying that improving people's lives was his top priority and tackling energy shortages was an urgent task.

Hua, the Beijing-based analyst, said changes in the economic model will affect politics, "which poses new challenges to his control over the country."

"For this point, he must ask for advice from China."

The visit coincided with negotiations between US and Chinese officials in Beijing to resolve a bruising trade war between the world's two biggest economies.

Some analysts say China could use its cooperation on the North Korean issue as a bargaining chip in the US trade talks.

But Hua said Kim's visit would have a "limited" effect on the trade negotiations.

"The Sino-US trade negotiations are a matter between China and the US. The weight of North Korea is limited and cannot play a decisive role," he said.

Kim arrived in Beijing on Tuesday for his fourth visit to Pyongyang's sole major diplomatic friend, reportedly visiting a factory and meeting President Xi Jinping.

Kim Jong Un's train left Beijing on Wednesday after the North Korean leader visited his key ally on a trip seen as a strategy session ahead of his expected summit with Donald Trump. Kim arrived in Beijing on Tuesday for his fourth visit to Pyongyang's sole major diplomatic friend, reportedly visiting a factory and meeting President Xi Jinping. The North Korean leader's motorcade was spotted arriving at the Beijing central railway station early afternoon, and the train departed shortly after on a day-long ride back to the northeast border, according to AFP journalists. The unannounced trip was largely shrouded in secrecy. Beyond confirming his presence in Beijing, no details have been provided by either North Korea or China on his schedule. Kim met for one hour with Chinese President Xi Jinping on Tuesday - believed to be the North Korean leader's birthday - and the two later dined with their wives at Beijing's Great Hall of the People, according to South Korea's Yonhap news agency. The meeting focused on Kim's expected meeting with Trump, according to Yonhap. In a New Year speech, Kim warned that Pyongyang may change its approach to nuclear talks if Washington persists with sanctions. Relations between China and North Korea had deteriorated in recent years over Pyongyang's nuclear activities, but Kim has made sure to keep Xi informed about his dealings with the United States and South Korea as ties appear to have warmed. "In order to resist the high pressure of the US, he must communicate with Xi in advance to see what steps he can take to deal with Trump," Beijing-based independent political commentator Hua Po told AFP. "Kim needs the support of Xi so as to ask the US to make substantial steps, such as providing assistance to North Korea and normalising relations with North Korea," Hua said. Kim chose China for his maiden official trip abroad last year before holding meetings with South Korean President Moon Jae-in and Trump. Trump said Sunday that the United States and North Korea are negotiating the location of their next summit. Discussions between the US and North Korea over Pyongyang's nuclear arsenal have stalled since Kim and Trump's high-profile summit in Singapore in June where they issued a vaguely worded declaration about denuclearisation. The United States insists that United Nations sanctions must remain in place until North Korea gives up its weapons, while Pyongyang wants them immediately eased. China also wants the sanctions to be relaxed. But Chinese officials also likely want to impress on Kim — who has so far pursued only limited reforms to his statist economy — the benefits the giant Communist country has enjoyed in its transformation from an impoverished nation to economic powerhouse. Yonhap, citing unidentified sources, reported that Kim toured a factory operated by medicine firm Tongrentang for about half an hour in an economic zone in the Chinese capital. He then went to the Beijing Hotel where he was expected to have lunch with Xi before his departure. "For North Korea itself, 2019 is his strategic turning point. If he wants to shift his focus to the development of the economy, he needs China's cooperation," said Lu Chao, a North Korea expert at China's Liaoning Academy of Social Sciences. "China will also introduce some successful experiences to Kim to help North Korea achieve economic transformation and realise the denuclearisation of the peninsula as soon as possible," Lu told AFP. In the New Year speech, Kim focused on North Korea's moribund economy, saying that improving people's lives was his top priority and tackling energy shortages was an urgent task. Hua, the Beijing-based analyst, said changes in the economic model will affect politics, "which poses new challenges to his control over the country." "For this point, he must ask for advice from China." The visit coincided with negotiations between US and Chinese officials in Beijing to resolve a bruising trade war between the world's two biggest economies. Some analysts say China could use its cooperation on the North Korean issue as a bargaining chip in the US trade talks. But Hua said Kim's visit would have a "limited" effect on the trade negotiations. "The Sino-US trade negotiations are a matter between China and the US. The weight of North Korea is limited and cannot play a decisive role," he said.

Watch: North Korea's Kim ends China visit after meeting President Xi

Watch: WION Fineprint, 8th January 2019

Kim Jong un visits Beijing on Xi Jinping's invitation

Southeast Asian countries should be cautious in negotiating with China on its flagship Belt and Road Initiative (BRI) to avoid being trapped in unsustainable debt, 70 per cent of respondents said in a policy survey released on Monday.

Southeast Asia is increasingly sceptical of US commitment to the region as a strategic partner and a source of security, while China's reach is seen as growing both politically and economically, the study also showed.

"The conventional wisdom that China holds sway in the economic realm while the United States wields its influence in the political-strategic domain will ... need to be revisited in light of the survey results," it said.

The survey by the ISEAS-Yusof Ishak Institute, affiliated with the Singapore government, polled 1,008 respondents from all ten nations of the ASEAN grouping, drawn from government, academic and business communities, civil society and the media.

Nearly half of the respondents said President Xi Jinping's hallmark Belt and Road initiative would bring ASEAN "closer into China's orbit," while a third said the project lacked transparency and 16 per cent predicted it would fail.

A large majority, or 70 per cent, said their governments "should be cautious in negotiating BRI projects, to avoid getting into unsustainable financial debts with China," a view strongest in Malaysia, the Philippines, and Thailand.

Some Western governments have accused China of pulling countries into a debt trap with the initiative, an accusation China has denied.

China was seen by 73 per cent of the respondents as having the greatest economic influence in the region and was also believed to have more influence politically and strategically than the United States.

Six out of ten respondents said US influence globally had deteriorated from a year ago and two-thirds believed US engagement with Southeast Asia declined. About a third said they had little or no confidence in the US as a strategic partner and provider of regional security.

Fewer than one in 10 saw China as "a benign and benevolent power," with nearly a half saying Beijing possessed "an intent to turn Southeast Asia into its sphere of influence".

The study's authors wrote, "This result ... is a wake-up call for China to burnish its negative image across Southeast Asia despite Beijing’s repeated assurance of its benign and peaceful rise."

There was a call for the Association of Southeast Asian Nations (ASEAN) to play a more active role in Myanmar's Rohingya crisis, although a majority of the respondents sought mediation rather than diplomatic pressure.

The United Nations says 730,000 Rohingya Muslims have fled from Myanmar's Rakhine State to Bangladesh since the military's crackdown on insurgent attacks.

US-mandated investigators have accused Myanmar's military of carrying out killings, gang rape and arson with "genocidal intent," an allegation the military has denied.

Southeast Asian countries should be cautious in negotiating with China on its flagship Belt and Road Initiative (BRI) to avoid being trapped in unsustainable debt, 70 per cent of respondents said in a policy survey released on Monday.

Southeast Asian countries should be cautious in negotiating with China on its flagship Belt and Road Initiative (BRI) to avoid being trapped in unsustainable debt, 70 per cent of respondents said in a policy survey released on Monday. Southeast Asia is increasingly sceptical of US commitment to the region as a strategic partner and a source of security, while China's reach is seen as growing both politically and economically, the study also showed. "The conventional wisdom that China holds sway in the economic realm while the United States wields its influence in the political-strategic domain will ... need to be revisited in light of the survey results," it said. The survey by the ISEAS-Yusof Ishak Institute, affiliated with the Singapore government, polled 1,008 respondents from all ten nations of the ASEAN grouping, drawn from government, academic and business communities, civil society and the media. Nearly half of the respondents said President Xi Jinping's hallmark Belt and Road initiative would bring ASEAN "closer into China's orbit," while a third said the project lacked transparency and 16 per cent predicted it would fail. A large majority, or 70 per cent, said their governments "should be cautious in negotiating BRI projects, to avoid getting into unsustainable financial debts with China," a view strongest in Malaysia, the Philippines, and Thailand. Some Western governments have accused China of pulling countries into a debt trap with the initiative, an accusation China has denied. China was seen by 73 per cent of the respondents as having the greatest economic influence in the region and was also believed to have more influence politically and strategically than the United States. Six out of ten respondents said US influence globally had deteriorated from a year ago and two-thirds believed US engagement with Southeast Asia declined. About a third said they had little or no confidence in the US as a strategic partner and provider of regional security. Fewer than one in 10 saw China as "a benign and benevolent power," with nearly a half saying Beijing possessed "an intent to turn Southeast Asia into its sphere of influence". The study's authors wrote, "This result ... is a wake-up call for China to burnish its negative image across Southeast Asia despite Beijing’s repeated assurance of its benign and peaceful rise." There was a call for the Association of Southeast Asian Nations (ASEAN) to play a more active role in Myanmar's Rohingya crisis, although a majority of the respondents sought mediation rather than diplomatic pressure. The United Nations says 730,000 Rohingya Muslims have fled from Myanmar's Rakhine State to Bangladesh since the military's crackdown on insurgent attacks. US-mandated investigators have accused Myanmar's military of carrying out killings, gang rape and arson with "genocidal intent," an allegation the military has denied.

Southeast Asia wary of China's Belt and Road project, sceptical of US: Report

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

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

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

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

China's armed forces must strengthen their sense of urgency and do everything they can to prepare for battle, President Xi Jinping told a meeting of top brass on Friday.

China is keen to beef up its armed forces amid territorial disputes in the South China Sea and escalating tension with the United States over issues ranging from trade to the status of Taiwan.

The official Xinhua news agency said Xi told a meeting of the top military authority that China faced increasing risks and challenges, and the armed forces must work to secure its security and development needs.

Xi, who is also chairman of the Central Military Commission, said the armed forces must devise strategies for the new era and take on responsibilities for preparing and waging war.

"The world is facing a period of major changes never seen in a century, and China is still in an important period of strategic opportunity for development," he was quoted as saying.

He said the armed forces needed to be able to respond quickly to emergencies, needed to upgrade their joint operations capabilities and nurture new types of combat forces.

Xi's comments followed his remarks on Wednesday that China still reserved the right to use force to achieve "reunification" with Taiwan and prevent the island's independence.

Xi's Taiwan speech came just days after U.S. President Donald Trump signed the Asia Reassurance Initiative Act into law, reaffirming the U.S. commitment to the island's security.

China's armed forces must strengthen their sense of urgency and do everything they can to prepare for battle, President Xi Jinping told a meeting of top brass on Friday.

China's armed forces must strengthen their sense of urgency and do everything they can to prepare for battle, President Xi Jinping told a meeting of top brass on Friday. China is keen to beef up its armed forces amid territorial disputes in the South China Sea and escalating tension with the United States over issues ranging from trade to the status of Taiwan. The official Xinhua news agency said Xi told a meeting of the top military authority that China faced increasing risks and challenges, and the armed forces must work to secure its security and development needs. Xi, who is also chairman of the Central Military Commission, said the armed forces must devise strategies for the new era and take on responsibilities for preparing and waging war. "The world is facing a period of major changes never seen in a century, and China is still in an important period of strategic opportunity for development," he was quoted as saying. He said the armed forces needed to be able to respond quickly to emergencies, needed to upgrade their joint operations capabilities and nurture new types of combat forces. Xi's comments followed his remarks on Wednesday that China still reserved the right to use force to achieve "reunification" with Taiwan and prevent the island's independence. Xi's Taiwan speech came just days after U.S. President Donald Trump signed the Asia Reassurance Initiative Act into law, reaffirming the U.S. commitment to the island's security.

President Xi Jinping calls on Chinese Army to be battle-ready

Taiwan President Tsai Ing-wen called on Saturday for international support to defend the self-ruled island`s democracy and way of life in the face of renewed threats from China.&nbsp;

Tsai's comments came days after Chinese President Xi Jinping said nobody could change the fact that Taiwan was part of China, and that people on both sides of the Taiwan Strait should seek "reunification".

"We hope that the international community takes it seriously and can voice support and help us," Tsai told reporters in Taipei, referring to threats by China to use force to bring Taiwan under its control.

If the international community did not support a democratic country that was under threat, "we might have to ask which country might be next,?" Tsai added.

Taiwan is China's most sensitive issue and is claimed by Beijing as its sacred territory. Xi has stepped up pressure on the democratic island since Tsai from the pro-independence Democratic Progressive Party became president in 2016.

President Xi said on Wednesday that China reserves the right to use force to bring Taiwan under its control but will strive to achieve peaceful "reunification" with the island.&nbsp;

In response, Tsai has said the island would not accept a "one country, two systems" political arrangement with China while stressing all cross-Strait negotiations needed to be carried out on a government-to-government basis.&nbsp;

Tsai on Saturday also urged China to have a "correct understanding" of what Taiwanese think and said actions such as political bullying were unhelpful in cross-strait relations. 
&nbsp;

Tsai's comments came days after Chinese President Xi Jinping said nobody could change the fact that Taiwan was part of China, and that people on both sides of the Taiwan Strait should seek 'reunification'.

Taiwan President Tsai Ing-wen called on Saturday for international support to defend the self-ruled island`s democracy and way of life in the face of renewed threats from China. Tsai's comments came days after Chinese President Xi Jinping said nobody could change the fact that Taiwan was part of China, and that people on both sides of the Taiwan Strait should seek "reunification". "We hope that the international community takes it seriously and can voice support and help us," Tsai told reporters in Taipei, referring to threats by China to use force to bring Taiwan under its control. If the international community did not support a democratic country that was under threat, "we might have to ask which country might be next,?" Tsai added. Taiwan is China's most sensitive issue and is claimed by Beijing as its sacred territory. Xi has stepped up pressure on the democratic island since Tsai from the pro-independence Democratic Progressive Party became president in 2016. President Xi said on Wednesday that China reserves the right to use force to bring Taiwan under its control but will strive to achieve peaceful "reunification" with the island. In response, Tsai has said the island would not accept a "one country, two systems" political arrangement with China while stressing all cross-Strait negotiations needed to be carried out on a government-to-government basis. Tsai on Saturday also urged China to have a "correct understanding" of what Taiwanese think and said actions such as political bullying were unhelpful in cross-strait relations.

Taiwan president calls for international support to defend democracy

President Donald Trump said Friday he is confident Washington and Beijing will reach a deal to bring to a close the months-long trade dispute that has roiled global financial markets.

"I think we will make a deal with China," Trump said at the White House, and noted that talks are underway with China "at the highest levels."

With the Chinese economy slowing, "I really think they want to" reach an agreement, he told reporters. "I think they sort of have to."

A US delegation is due to travel to Beijing to hold negotiations Monday, but Trump said he and Chinese leader Xi Jinping already have been actively engaged in the talks.

"We have a massive trade negotiation going on with China. President Xi is very much involved, so am I. We're dealing at the highest levels and we're doing very well," he said.

Trump and Xi agreed to a three-month cease-fire after imposing steep tariffs on hundreds of billions of dollars in two-way trade, which has raised fears of slowing economic growth and added to investor jitters worldwide.

Trump repeated that the US has "taken in billions and billions of dollars in tariffs from China and from others," despite the fact import duties are increasing costs for American businesses and consumers.

The New York Federal Reserve bank said in an analysis Friday that "higher import tariffs had immediate impacts on US domestic prices," raising the consumer and producer prices by 0.3 percentage points higher than they would otherwise have been.

Deputy US Trade Representative Jeffrey Gerrish is due to lead the team to China for the first face-to-face discussions, which will include officials from the Treasury, Commerce and Agriculture departments as well.

The bruising trade war comes as China grapples with a slowing domestic economy. Growth is expected by the government to have eased to around 6.5 per cent in 2018, down from 6.9 per cent in 2017.

The manufacturing sectors in both countries have been hit by the trade dispute, and Apple shares dropped sharply after reporting steeper-than-expected "economic deceleration" in the last quarter in China -- one of its largest overseas markets.

Trump said he has urged Apple chief Tim Cook to "make your product in the United States" rather than China.

A US delegation is due to travel to Beijing to hold negotiations Monday, but Trump said he and Chinese leader Xi Jinping already have been actively engaged in the talks.

President Donald Trump said Friday he is confident Washington and Beijing will reach a deal to bring to a close the months-long trade dispute that has roiled global financial markets. "I think we will make a deal with China," Trump said at the White House, and noted that talks are underway with China "at the highest levels." With the Chinese economy slowing, "I really think they want to" reach an agreement, he told reporters. "I think they sort of have to." A US delegation is due to travel to Beijing to hold negotiations Monday, but Trump said he and Chinese leader Xi Jinping already have been actively engaged in the talks. "We have a massive trade negotiation going on with China. President Xi is very much involved, so am I. We're dealing at the highest levels and we're doing very well," he said. Trump and Xi agreed to a three-month cease-fire after imposing steep tariffs on hundreds of billions of dollars in two-way trade, which has raised fears of slowing economic growth and added to investor jitters worldwide. Trump repeated that the US has "taken in billions and billions of dollars in tariffs from China and from others," despite the fact import duties are increasing costs for American businesses and consumers. The New York Federal Reserve bank said in an analysis Friday that "higher import tariffs had immediate impacts on US domestic prices," raising the consumer and producer prices by 0.3 percentage points higher than they would otherwise have been. Deputy US Trade Representative Jeffrey Gerrish is due to lead the team to China for the first face-to-face discussions, which will include officials from the Treasury, Commerce and Agriculture departments as well. The bruising trade war comes as China grapples with a slowing domestic economy. Growth is expected by the government to have eased to around 6.5 per cent in 2018, down from 6.9 per cent in 2017. The manufacturing sectors in both countries have been hit by the trade dispute, and Apple shares dropped sharply after reporting steeper-than-expected "economic deceleration" in the last quarter in China -- one of its largest overseas markets. Trump said he has urged Apple chief Tim Cook to "make your product in the United States" rather than China.

Trump says confident in US trade deal with China

President Xi Jinping hailed China's "reconstructive reforms" in a New Year speech, but the sorely needed changes could be put on ice in favour of averting a potentially devastating economic downturn.

The way ahead is further complicated by a volatile trade dispute with the United States that -- if unresolved -- will add to the burden of Beijing’s policymakers as they seek to fuel an economy that is running out of steam.

Beijing has for years come under pressure to introduce much-needed reforms to the country's infrastructure and lumbering state-owned enterprises as part of a drive to tackle a burdensome debt mountain and transform its growth engine from investment and exports to domestic consumption.

But Gene Fang from rating agency Moody’s told AFP: "When trade-offs between reforms and growth arise, we expect that the priority will more often be given to supporting growth."

Ten years ago China unleashed the full power of its financial arsenal by introducing massive stimulus measures, which helped Beijing avert the worst of the financial crisis engulfing the rest of the world.

However, that helped sow the seeds of today's economic troubles, with debt at alarming levels and necessary economic reforms not addressed as leaders focused on maintaining stable growth and employment.

Now, with the global economy stuttering, a slowdown in key export markets is denting a crucial source of income while the country is also struggling with a plethora of structural problems such as ageing -- and now shrinking -- population, a dwindling pool of rural workers, overcapacity and air pollution.

'Debt mess'

And then there is the trade war with the United States, which has magnified the problems while sending shudders through global markets.

"The Chinese economy is struggling, the debt mess is unresolved and the impact from the US tariffs has barely begun," said Bill Bishop, an expert on China, who added the Communist Party will do "everything it can to juice the economy" with "multiple forms of stimuli".

"Whether or not significant economic reforms will now also be forthcoming, and not just more promises, is the trillion-dollar question," he said.

Xi and US President Donald Trump may have agreed on a temporary truce in their multi-billion-dollar stand-off -- and Beijing Friday announced face-to-face talks will begin next week -- but there is little optimism the row will be brought to an end any time soon.

In the absence of a breakthrough in current negotiations, "the US-China trade conflict will weigh on growth in China and on the wider Asia-Pacific region, via a slowdown in Chinese demand", according to analysts Oxford Economics.

The impact of the trade row came into full view this week when Apple announced a shock cut in its revenue forecast for the December quarter blaming the steeper-than-expected "economic deceleration" in China and emerging markets and citing the China-US frictions.

While analysts still believe China -- which last month celebrated 40 years since opening up to the world -- should still achieve its growth target of 6.5 per cent for 2018, that would be the weakest rate in almost three decades.&nbsp;

That after an average growth rate of 9.7 per cent a year between 1978 and 2015.

Long-term goal

Raymond Deng, an analyst at Singapore-based DBS Bank, said the government must raise domestic consumption and inject "sufficient" cash into the market, while "eliminating state-owned enterprises with backward production capacity".&nbsp;

But with a debt crisis brewing, authorities have decided against the 2008-like stimulus, instead opting for a series of separate measures including making it easier for banks to lend and much-hyped tax cuts.

Some sectors saw a one per cent drop in VAT and taxpayers will in 2019 benefit from deductions in education, critical healthcare and mortgage repayments, while the rate at which tax kicks in has also been raised.

"If the tax reduction plan is implemented well, it cannot only boost corporate profits and household consumption in the short term but also improve the economic structure in the long run," said Zhu Chaoping, a strategist at JPMorgan Asset Management.

Meanwhile, Beijing University economics professor Su Jian believes support for consumption requires a rise and a "better distribution" of household income, as well as increased health, education and social support to steer people away from precautionary saving.

He also points out that China's GDP per capita is about one-eighth of that of the United States.

"The development margin is still large... the GDP can still grow seven per cent for 20 years," he said.&nbsp;

However, for many economists, wealth generation could continue to weaken.&nbsp;

Zhu expected "a GDP increase of around five per cent across the next 10 to 15 years", while Capital Economics expected the growth rate to even decline to two per cent by 2030.

Ten years ago China unleashed the full power of its financial arsenal by introducing massive stimulus measures, which helped Beijing avert the worst of the financial crisis engulfing the rest of the world.

President Xi Jinping hailed China's "reconstructive reforms" in a New Year speech, but the sorely needed changes could be put on ice in favour of averting a potentially devastating economic downturn. The way ahead is further complicated by a volatile trade dispute with the United States that -- if unresolved -- will add to the burden of Beijing’s policymakers as they seek to fuel an economy that is running out of steam. Beijing has for years come under pressure to introduce much-needed reforms to the country's infrastructure and lumbering state-owned enterprises as part of a drive to tackle a burdensome debt mountain and transform its growth engine from investment and exports to domestic consumption. But Gene Fang from rating agency Moody’s told AFP: "When trade-offs between reforms and growth arise, we expect that the priority will more often be given to supporting growth." Ten years ago China unleashed the full power of its financial arsenal by introducing massive stimulus measures, which helped Beijing avert the worst of the financial crisis engulfing the rest of the world. However, that helped sow the seeds of today's economic troubles, with debt at alarming levels and necessary economic reforms not addressed as leaders focused on maintaining stable growth and employment. Now, with the global economy stuttering, a slowdown in key export markets is denting a crucial source of income while the country is also struggling with a plethora of structural problems such as ageing -- and now shrinking -- population, a dwindling pool of rural workers, overcapacity and air pollution. 'Debt mess' And then there is the trade war with the United States, which has magnified the problems while sending shudders through global markets. "The Chinese economy is struggling, the debt mess is unresolved and the impact from the US tariffs has barely begun," said Bill Bishop, an expert on China, who added the Communist Party will do "everything it can to juice the economy" with "multiple forms of stimuli". "Whether or not significant economic reforms will now also be forthcoming, and not just more promises, is the trillion-dollar question," he said. Xi and US President Donald Trump may have agreed on a temporary truce in their multi-billion-dollar stand-off -- and Beijing Friday announced face-to-face talks will begin next week -- but there is little optimism the row will be brought to an end any time soon. In the absence of a breakthrough in current negotiations, "the US-China trade conflict will weigh on growth in China and on the wider Asia-Pacific region, via a slowdown in Chinese demand", according to analysts Oxford Economics. The impact of the trade row came into full view this week when Apple announced a shock cut in its revenue forecast for the December quarter blaming the steeper-than-expected "economic deceleration" in China and emerging markets and citing the China-US frictions. While analysts still believe China -- which last month celebrated 40 years since opening up to the world -- should still achieve its growth target of 6.5 per cent for 2018, that would be the weakest rate in almost three decades. That after an average growth rate of 9.7 per cent a year between 1978 and 2015. Long-term goal Raymond Deng, an analyst at Singapore-based DBS Bank, said the government must raise domestic consumption and inject "sufficient" cash into the market, while "eliminating state-owned enterprises with backward production capacity". But with a debt crisis brewing, authorities have decided against the 2008-like stimulus, instead opting for a series of separate measures including making it easier for banks to lend and much-hyped tax cuts. Some sectors saw a one per cent drop in VAT and taxpayers will in 2019 benefit from deductions in education, critical healthcare and mortgage repayments, while the rate at which tax kicks in has also been raised. "If the tax reduction plan is implemented well, it cannot only boost corporate profits and household consumption in the short term but also improve the economic structure in the long run," said Zhu Chaoping, a strategist at JPMorgan Asset Management. Meanwhile, Beijing University economics professor Su Jian believes support for consumption requires a rise and a "better distribution" of household income, as well as increased health, education and social support to steer people away from precautionary saving. He also points out that China's GDP per capita is about one-eighth of that of the United States. "The development margin is still large... the GDP can still grow seven per cent for 20 years," he said. However, for many economists, wealth generation could continue to weaken. Zhu expected "a GDP increase of around five per cent across the next 10 to 15 years", while Capital Economics expected the growth rate to even decline to two per cent by 2030.

China could put reforms on hold to boost economy: Report

US issues warning against travel to China

In pictures: Taiwan-China relations since 1949

Taiwan independence would lead to "disaster", Chinese President Xi Jinping said on Wednesday, pledging efforts for peaceful "reunification" with the self-ruled island but warning China would not renounce the use of force.

Speaking at Beijing's Great Hall of the People on the 40th anniversary of a key Taiwan policy statement, Xi said reunification must come under a one-China principle that accepts Taiwan as part of China, anathema to supporters of Taiwan independence.

All people in Taiwan must "clearly recognise that Taiwan independence would only bring profound disaster to Taiwan", Xi said.

"We are willing to create broad space for peaceful reunification, but will leave no room for any form of separatist activities," he said.

"We make no promise to renounce the use of force and reserve the option of taking all necessary means," he said, adding that the issue is China's internal affair and that it would permit "no external interference".

Chinese Nationalist forces fled to Taiwan in December of 1949 after losing a civil war to the Communists.

While today the two sides have close business, cultural and personal links, proudly democratic Taiwan has shown no interest in being ruled by autocratic Beijing.

&nbsp;

Taiwan independence would lead to "disaster", Chinese President Xi Jinping said on Wednesday, pledging efforts for peaceful "reunification" with the self-ruled island but warning China would not renounce the use of force.

Taiwan independence would lead to "disaster", Chinese President Xi Jinping said on Wednesday, pledging efforts for peaceful "reunification" with the self-ruled island but warning China would not renounce the use of force. Speaking at Beijing's Great Hall of the People on the 40th anniversary of a key Taiwan policy statement, Xi said reunification must come under a one-China principle that accepts Taiwan as part of China, anathema to supporters of Taiwan independence. All people in Taiwan must "clearly recognise that Taiwan independence would only bring profound disaster to Taiwan", Xi said. "We are willing to create broad space for peaceful reunification, but will leave no room for any form of separatist activities," he said. "We make no promise to renounce the use of force and reserve the option of taking all necessary means," he said, adding that the issue is China's internal affair and that it would permit "no external interference". Chinese Nationalist forces fled to Taiwan in December of 1949 after losing a civil war to the Communists. While today the two sides have close business, cultural and personal links, proudly democratic Taiwan has shown no interest in being ruled by autocratic Beijing.

China's Xi says Taiwan independence would be disaster, calls for peaceful 'reunification'

History shows that cooperation is the best choice for both China and the United States, Chinese President Xi Jinping told US&nbsp;President Donald Trump in a congratulatory message on Tuesday to mark 40 years since the establishment of diplomatic relations.

The two countries agreed last month to a 90-day temporary ceasefire in their bitter trade war to give them time to hold fresh talks to try and end a dispute that has seen them level increasingly severe tariffs on each others' goods.

In his message to Trump, Xi said China-US&nbsp;relations have experienced ups and downs but have made historic progress over the past four decades, state news agency Xinhua said.

This has brought huge benefits to the two peoples and has contributed greatly to world peace, stability and prosperity, Xi added.

"History has proved that cooperation is the best choice for both sides," Xi said.

Sino-US&nbsp;relations are in an important stage, he added.

"I attach great importance to the development of China-US&nbsp;relations and am willing to work with President Trump to summarise the experience of the development of China-US&nbsp;relations and implement the consensus we have reached in a joint effort to advance China-US&nbsp;relations featuring coordination, cooperation and stability so as to better benefit the two peoples as well as the people of the rest of the world," he said.

Trump sent his own congratulatory message in return, saying it was his priority to promote cooperative and constructive US-China relations, Xinhua added.

Xi and Trump also spoke by telephone over the weekend. Trump said he had a "long and very good call" with Xi and that a possible trade deal between the United States and China was progressing well.

China and the United States have made plans for face-to-face consultations over trade in January, China's Commerce Ministry said last week.

Xinhua, in a commentary, said it was only natural the two countries would have disagreements and encounter problems, considering their "different social systems, development paths and historical and cultural backgrounds".

"At a time when the world is undergoing unprecedentedly profound changes and is fraught with risks and uncertainties, the global community expects even closer collaboration between the two largest economies," it said.

This year marks a series of sensitive anniversaries for China, including, in June, 30 years since the bloody crackdown on pro-democracy demonstrators in and around Beijing's Tiananmen Square.

On Wednesday, Xi will make his first public appearance at an anniversary-related event, giving a speech about self-ruled Taiwan, which China claims as its sacred territory, on the 40th anniversary of a key policy statement that led to a thaw in relations with the island. 
&nbsp;

History shows that cooperation is the best choice for both China and the United States, Chinese President Xi Jinping told US President Donald Trump in a congratulatory message on Tuesday to mark 40 years since the establishment of diplomatic relations.

History shows that cooperation is the best choice for both China and the United States, Chinese President Xi Jinping told US President Donald Trump in a congratulatory message on Tuesday to mark 40 years since the establishment of diplomatic relations. The two countries agreed last month to a 90-day temporary ceasefire in their bitter trade war to give them time to hold fresh talks to try and end a dispute that has seen them level increasingly severe tariffs on each others' goods. In his message to Trump, Xi said China-US relations have experienced ups and downs but have made historic progress over the past four decades, state news agency Xinhua said. This has brought huge benefits to the two peoples and has contributed greatly to world peace, stability and prosperity, Xi added. "History has proved that cooperation is the best choice for both sides," Xi said. Sino-US relations are in an important stage, he added. "I attach great importance to the development of China-US relations and am willing to work with President Trump to summarise the experience of the development of China-US relations and implement the consensus we have reached in a joint effort to advance China-US relations featuring coordination, cooperation and stability so as to better benefit the two peoples as well as the people of the rest of the world," he said. Trump sent his own congratulatory message in return, saying it was his priority to promote cooperative and constructive US-China relations, Xinhua added. Xi and Trump also spoke by telephone over the weekend. Trump said he had a "long and very good call" with Xi and that a possible trade deal between the United States and China was progressing well. China and the United States have made plans for face-to-face consultations over trade in January, China's Commerce Ministry said last week. Xinhua, in a commentary, said it was only natural the two countries would have disagreements and encounter problems, considering their "different social systems, development paths and historical and cultural backgrounds". "At a time when the world is undergoing unprecedentedly profound changes and is fraught with risks and uncertainties, the global community expects even closer collaboration between the two largest economies," it said. This year marks a series of sensitive anniversaries for China, including, in June, 30 years since the bloody crackdown on pro-democracy demonstrators in and around Beijing's Tiananmen Square. On Wednesday, Xi will make his first public appearance at an anniversary-related event, giving a speech about self-ruled Taiwan, which China claims as its sacred territory, on the 40th anniversary of a key policy statement that led to a thaw in relations with the island.

Cooperation best for both China and US, Xi tells Trump

<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

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