In this file:

 

·         Donald Trump and Xi Jinping declare trade truce at G20
US officials say president will wait 90 days before imposing 25% tariffs to allow negotiations

 

·         Factbox: Contrasting Chinese, U.S. statements on trade war agreement

·         The U.S. and China’s Trade Truce Statements, Compared

·         Chinese Firms Worry the U.S. Trade War Thaw Could Be Shortlived

·         The next date to watch in the US-China trade war is Dec. 18, expert says

 

·         China to Start Purchasing Ag Products “Immediately” After G20 Meeting with Trump

 

 

Donald Trump and Xi Jinping declare trade truce at G20

US officials say president will wait 90 days before imposing 25% tariffs to allow negotiations

 

Julian Borger in Buenos Aires, The Guardian (UK)

Sat 1 Dec 2018

 

Donald Trump has delayed for 90 days his threatened imposition of 25% tariffs on most Chinese imports after a dinner meeting with Xi Jinping, to give time for negotiations on longstanding trade disputes between the two countries, the White House has said.

 

Trump said their dinner after the G20 summit in Buenos Aires “was an amazing and productive meeting with unlimited possibilities for both the United States and China”.

 

A statement by the White House spokeswoman, Sarah Sanders, issued as Trump was on his way back to Washington, listed concessions the Chinese president was said have made, including stopping Chinese exports to the US of fentanyl, a synthetic opioid, and the death sentence for convicted traffickers.

 

The statement said that Xi, “in a wonderful humanitarian gesture, has agreed to designate fentanyl as a controlled substance, meaning that people selling fentanyl to the United States will be subject to China’s maximum penalty under the law”.

 

The press statement said Trump would not follow through his threat to raise tariffs on $200 bn worth of Chinese goods from 10% to 25% in the new year, which he had described as a reprisal for a long history of unfair Chinese trade practices. There were widespread concerns that such a large hike in tariffs could trigger a serious trade war between the two countries, with devastating results for the global economy.

 

According to Sanders, Xi agreed that China would purchase “a not yet agreed upon, but very substantial, amount of agricultural, energy, industrial, and other product from the United States to reduce the trade imbalance between our two countries”.

 

“China has agreed to start purchasing agricultural product from our farmers immediately,” the statement said. Since trade tensions have escalated under Trump, China has radically reduced its import of US soy beans and other farm products, with direct impact on farmers in the US mid-west where Trump has drawn much of his political support.

 

Sanders said the two leaders had agreed to begin immediate negotiations on “structural changes” on chronic issues of contention, including the practice of forcing US investors to hand over technological knowhow, intellectual property protection and non-tariff barriers to entry for US businesses. The negotiations would also encompass cyber theft, services and agriculture...

 

more

https://www.theguardian.com/world/2018/dec/02/donald-trump-and-xi-jinping-declare-trade-truce-at-g20

 

 

Factbox: Contrasting Chinese, U.S. statements on trade war agreement

 

Reuters

December 2, 2018

 

(Reuters) - China and the United States agreed on Saturday to a truce in their trade war following talks between Chinese President Xi Jinping and U.S. President Donald Trump on the sidelines of the G20 summit in Argentina.

 

However, there are differences in both countries’ official accounts of what was agreed. Here are some of the key differences:

 

QUALCOMM-NXP

 

The White House said Xi said he was open to approving the previously unapproved Qualcomm-NXP deal should it again be presented to him.

 

Senior Chinese officials did not mention this deal in a news conference. However, at least one major Chinese state media outlet mentioned it on its account on Chinese social media platform WeChat, referring to the White House statement.

 

CHINESE STRUCTURAL ECONOMIC CHANGES

 

The White House said Trump and Xi agreed to immediately begin negotiations on structural changes with respect to forced technology transfer, intellectual property protection, non-tariff barriers, cyber intrusions and cyber theft, services and agriculture.

 

The Chinese government’s top diplomat, State Councilor Wang Yi, was less specific, telling reporters China will import more products, based on market demand, from the United States in efforts to gradually ease imbalances in two-way trade.

 

Wang added that the two also agreed to open markets to each other, and that China will work to gradually resolve U.S. concerns in the process of further opening-up.

 

On Monday, influential Chinese tabloid the Global Times said it understood China and the United States will further discuss moves at expanding market access, intellectual property protection, avoiding compulsory technology transfers, and joint control of cyber crime.

 

90-DAY TIMEFRAME FOR TALKS ...

 

CHINESE PURCHASES OF U.S. GOODS ...

 

more

https://www.reuters.com/article/us-usa-trade-china-factbox/factbox-contrasting-chinese-us-statements-on-trade-war-agreement-idUSKBN1O206F

 

 

The U.S. and China’s Trade Truce Statements, Compared

 

    Gap in White House, Foreign Ministry spin shows differences

    Chinese statement, most state media leave out 90-day condition

 

Bloomberg News

December 2, 2018, 11:54 PM CST

 

The U.S. and China emphasized different results from Sunday’s high-stakes meeting between Presidents Donald Trump and Xi Jinping, with the split highlighting how much of a gap needs to be overcome over the next three months.

 

After a dinner which both sides called "highly successful," White House Press Secretary Sarah Huckabee Sanders and Chinese Foreign Minister Wang Yi released parallel and rarely overlapping statements. The U.S. listed what China had agreed to in exchange for a 90-day pause in raising tariffs on Chinese goods, while Beijing focused on the broad reduction in trade tensions, without going into specifics.

 

Here is a side-by-side comparison of the main points of the two statements:

 

U.S. Statement                      Chinese Statement

 

more

https://www.bloomberg.com/news/articles/2018-12-02/u-s-china-trade-truce-side-by-side-comparison-of-statements

 

 

Chinese Firms Worry the U.S. Trade War Thaw Could Be Shortlived

 

    Trump, Xi agreement in Argentina may just delay hostilities

    Truce puts on hold U.S. plan to increase tariffs to 25 percent

 

By Bruce Einhorn and Daniela Wei, Bloomberg

December 3, 2018

 

Exporters of bags to toys in China cautioned that the trade war truce between the U.S. and China may provide just a minor respite in hostilities.

 

The U.S. agreed to refrain from raising tariffs on $200 billion of Chinese goods from a current 10 percent to punitive levels of 25 percent as planned on Jan. 1, according to announcements that followed the meeting between U.S. President Donald Trump and Chinese President Xi Jinping in Argentina. China agreed to buy American agricultural, energy and industrial goods.

 

The catch: the ceasefire is just for 90 days, after which the U.S. could revert to its tariff-raising plan if it sees no progress on structural reform. That timeline could be too tight to make progress on contentious issues such as China’s policies on technology transfers, intellectual property right protections and state-sector subsidies.

 

“Winter will continue,” said Jennie Zhang, chairman of Guangzhou Jinhuamei Leatherware Co., a maker of leather belts and handbags that were hit by the 10 percent tariffs Trump imposed. “The actual agreement seems more like just slightly delaying the problem instead of coming up with effective solutions.”

 

The two countries didn’t issue a joint statement with a framework for talks. A statement released by the Chinese government didn’t mention the 90-day time frame.

 

Since April, the Trump administration has announced three rounds of tariffs on as much as $250 billion of imports from China. In September, Trump threatened to go all-in with tariffs on the remaining Chinese products “on short notice if I want” -- a step that could have meant higher prices on popular imports such as Apple smartphones and Nike shoes.

 

Investors in Hong Kong are cheering the U.S.-China detente. Chinese pork producer WH Group Ltd., owner of U.S.-based Smithfield Foods Inc., soared 12 percent. Hurt by China’s tariffs on American meat, WH has been the fifth-worst performer on the Hang Seng this year.

 

Shares of Shenzhou International Group Holdings Ltd., a top supplier to Nike Inc. and Adidas AG, advanced 4.3 percent to close at 99.05 Hong Kong dollars Monday, outpacing the 2.6 percent increase for the benchmark Hang Seng index. Shares of Li & Fung Ltd., which exports garments, toys and sporting goods, rose 4.4 percent.

 

Manufacturers, however, are less sanguine...

 

more, including links

https://www.bloomberg.com/news/articles/2018-12-03/chinese-firms-worry-the-u-s-trade-war-thaw-could-be-shortlived

 

 

The next date to watch in the US-China trade war is Dec. 18, expert says

 

·         China marks the 40th anniversary of its economic reforms and opening up on Dec. 18 — an occasion Beijing could use to emphasize its commitment to transform its economy, noted Scott Kennedy of the Center for Strategic and International Studies.

·         "If that day or week goes by with no major new announcements, then we know that for sure there's not a possibility that the Chinese want to use this as an opportunity to change the direction of their economy and industrial policies," Kennedy said.

·         What happens in Washington could also influence how hard U.S. President Donald Trump will come down on China, he added.

 

Yen Nee Lee, CNBC

Dec 3, 2018

 

The next crucial date to watch for clues on where the trade war is heading may be just around the corner — way before the end of the 90-day period that U.S. President Donald Trump and Chinese President Xi Jinping have agreed on to withhold further tariffs.

 

China marks the 40th anniversary of its economic reforms on Dec. 18, which is an occasion Beijing could use to emphasize its commitment to transform its economy, noted Scott Kennedy, deputy director of the Freeman Chair in China Studies and director of the Project on Chinese Business and Political Economy at the Center for Strategic and International Studies.

 

"If that day or week goes by with no major new announcements, then we know that for sure there's not a possibility that the Chinese want to use this as an opportunity to change the direction of their economy and industrial policies," Kennedy told CNBC's "Squawk Box" on Monday.

 

If that happens, the tariff fight between the U.S. and China will certainly re-escalate at the end of the 90-day period, he added.

 

Trump over the weekend agreed to not raise tariffs on $200 billion worth of Chinese imports from 10 percent to 25 percent in January as he had previous threatened, according to a White House statement. In exchange, the U.S. and China will work toward a deal within 90 days — a timeline that many experts have said is too short given the complicated issues surrounding the tariff fight.

 

In addition to what Beijing does on or around Dec. 18, developments in Washington will also shed light on where U.S.-China relations stand, Kennedy said.

 

First, Kennedy said he'll watch for signs on whether the Trump administration can "get organized." Specifically, he said he'll look...

 

more, including links

https://www.cnbc.com/2018/12/03/us-china-trade-war-december-18-crucial-in-tariff-fight-expert-says.html

 

 

China to Start Purchasing Ag Products “Immediately” After G20 Meeting with Trump

 

By Eric Pfeiffer, Hoosier Ag Today

Dec 2, 2018

 

President Donald Trump met with Chinese President Xi Jinping at the G20 Summit in Buenos Aires, Argentina on Saturday. Trump agreed that on January 1, 2019 he will leave the tariffs on $200 billion worth of product at the 10% rate and not raise it to 25% as he previously committed. China will agree to purchase a not yet agreed upon, but very substantial, amount of agricultural, energy, industrial, and other product from the United States to reduce the trade imbalance between the two countries. China has agreed to start purchasing agricultural product immediately.

 

President Trump and President Xi agreed to immediately begin negotiations on structural changes with respect to forced technology transfer, intellectual property protection, non-tariff barriers, cyber intrusions and cyber theft, services and agriculture. Both China and the U.S. have placed a 90 day timeframe on completing a deal. Once that 90 days is up, the 10% tariffs will increase to 25% if no agreement has been reached.

 

In a release from White House Press Secretary Sarah Huckabee Sanders, Trump said, “This was an amazing and productive meeting with unlimited possibilities for both the United States and China. It is my great honor to be working with President Xi.”

 

John Heisdorffer, a soybean grower from Keota, Iowa, and American Soybean Association president said, “This is the first positive news we’ve seen after months of downturned prices and halted shipments. If this suspension of tariff increases leads to a longer-term agreement, it will be extremely positive for the soy industry. We want to begin repairing damage done to our trade relations with China, which has been essential to successful soybean exports for years.”

 

In a statement from Angela Hoffman, Executive Director for the group Farmers for Free Trade, she said, “Any signal, even if temporary, that this trade war may de-escalate is welcome news for farmers. While farmers are cautiously optimistic about this development, they are also keenly aware that they are still subject to the existing painful retaliatory tariffs and lost markets that have hurt their recently harvested crops and income.”

 

The African Swine Fever outbreak may be a driver in moving negotiations along...

 

more

https://www.hoosieragtoday.com/china-start-purchasing-ag-products-immediately-g20-meeting-trump/