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Trade truce with China means big changes in Beijing policy: Trump

Reuters  |  WASHINGTON/BEIJING 

By and Christian Shepherd

WASHINGTON/(Reuters) - and top U.S. officials said on Monday that a trade truce with will lead to structural changes in Beijing's economic policies, including lower tariffs, lower non-barriers and more market access for U.S. companies.

Trump and Chinese agreed to hold off on new tariffs during talks in on Saturday, declaring a truce following months of escalating tensions on trade and other issues. On Sunday, Trump tweeted that had agreed to cut import levies on American-made cars.

"My meeting in with Xi of was an extraordinary one. Relations with China have taken a BIG leap forward! Very good things will happen," Trump tweeted on Monday.

Chinese regulators did not respond to requests for comment on Trump's tweet on autos tariffs. Neither country had mentioned auto tariffs in their official read-outs of the Trump-Xi meeting.

At a dinner lasting two and a half hours, the agreed at the weekend not to raise tariffs further on Jan. 1, while China agreed to purchase more from U.S. farmers immediately.

The two sides also agreed to negotiate over the next 90 days to resolve issues of concern raised by the including intellectual property protection, non-trade barriers and cyber theft.

said on Monday there was a clear shift in tone at from past discussions with Chinese officials, as Xi offered a clear commitment to open China's markets to U.S. companies.

"This is the first time that we have a commitment from them that this will be a real agreement," Mnuchin told CNBC television, adding that the administration would know "very quickly" whether a deal can be documented.

"We absolutely need something concrete over these 90 days," Mnuchin added. "This is not going to be something where there's just soft commitments that get kicked down the road."

The truce boosted global markets on Monday with world stocks up nearly 1 percent. On Wall Street, the Dow Jones Industrial Average rose 0.94 percent at the open and the S&P 500 by 1.10 percent.

Gold hit its highest level in a month, and industrial metals and other commodities such as cotton also gained.

Chinese shares, commodities and the yuan currency surged. The benchmark Shanghai Composite index closed 2.6 percent higher and the blue-chip CSI300 index jumped 2.8 percent to their biggest daily gains in a month.

Mnuchin said the negotiations with China would be led by Trump, with an "inclusive team" of administration officials, including himself and other cabinet officials.

trade adviser, Peter Navarro, said, however that the talks would be led by U.S. Trade - a shift from past practices where Mnuchin had a lead role.

The has said the existing 10 percent tariffs on $200 billion worth of Chinese goods would be lifted to 25 percent if no deal was reached within 90 days, once again setting the clock ticking.

Speaking in Beijing, reiterated comments from the government's top who said on Saturday the ultimate goal was the lifting of all tariffs.

"The consensus reached by the leaders of our two countries is to halt the imposition of new tariffs and at the same time the two sides' leaders instructed the economics teams of both sides to intensify talks towards the removal of all tariffs that have been imposed," Geng told a daily briefing.

Mnuchin said China had agreed to make "big, long-term commitments" to purchase U.S. liquefied natural gas," provided that the builds sufficient export terminals.

(Reporting by and Christian Shepherd; Additional reporting by and in Beijing, Andrew Galbraith and David Stanway in Shanghai, and Noah Sin and Anne Marie Roantree in Hong Kong; Writing by Ben Blanchard; Editing by and Susan Thomas)

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

First Published: Mon, December 03 2018. 20:53 IST
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