China Working to Resolve Trade Differences ‘Quickly’
- China is confidence that it can reach a trade deal with the United States very timely.
Tuesday, US President Donald Trump warned that he would revert to more tariffs if the 2 sides cannot resolve their differences within the time frame set out Saturday.
The Chinese Commerce Ministry comments came from Beijing after Trump and Chinese leader Xi Jinping reached a temporary halt. China does not want escalated or new tariffs, it’s markets and economy are already in extreme pain.
The Ministry said China would work quickly to implement specific issues already agreed upon, as both sides “actively promote the work of negotiations within 90 days in accordance with a clear timetable and road map”.
“We are confident in implementation,” it said, calling the latest bi-lateral talks “very successful”.
The threat of further escalation in the trade war between the world’s two largest economies has loomed large over financial markets and the global economy for much of the year, and investors initially greeted the ceasefire with relief.
The US trade relief rally sentiment soured on skepticism that the 2 sides will be able to reach a substantive deal on a host of highly divisive issues within the 90-day negotiating period that was agreed.
Failure would raise the specter of fresh US tariff action and potential Chinese retaliation as early as March.
Global financial markets saw a technical Fibo retrace Tuesday, that was blamed on doubts over what could be accomplished in the tight negotiating window added to concerns about fading global growth.
That US selloff followed to Asia Wednesday
Major Chinese stock indexes .CSI300 .SSEC were down by close to 1% in morning trade on Wednesday.
President Trump, via Twitter, aka Tariff Trump, warned about the possibility of an extension of the 3-month grace period, but warned that tariffs would be back on the table if the talks failed to delivered his required results.
“The negotiations with China have already started. Unless extended, they will end 90 days from the date of our wonderful and very warm dinner with President Xi in Argentina,” President Trump Tweeted.
He said he would place “major tariffs” on Chinese goods imported into the United States if his trade team is unable to reach an effective trade deal with Beijing.
“We are either going to have a REAL DEAL with China, or no deal at all – at which point we will be charging major Tariffs against Chinese product being shipped into the United States. Ultimately, I believe, we will be making a deal – either now or into the future,” President Trump Tweeted within mins of the Commerce Ministry statement.
US futures are up on this latest news.
The US financial markets are closed Wednesday for a national of mourning for the late George HW Bush.