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

China to Start Purchasing Ag Products

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

Now, these tariffs will not be increased for 90 days, that is, until March 1, 2019.

In exchange, the US wants an immediate start to talks on Trump's biggest complaints about Chinese trade practices: intellectual property theft, non-tariff barriers and forced technology transfer. The US government will now hold off on raising tariffs on $200 billion worth of Chinese goods from 10% to 25% on January 1, according toa White House statement. But for United States cars, China added a 25 per cent tariff over the summer, making the rate 40 per cent.

During the meeting in Buenos Aires, the USA agreed not to increase tariffs on January 1, as had been planned, while China agreed to immediately buy more agricultural products from U.S. farmers. We can't yet determine whether both parties will be able to reach an economic trade deal within the 90-day period, as its unclear how much China is willing to sacrifice towards this deal. However, if the negotiations fail to bear fruit in the next 90 days, tariffs would be raised to 25 percent.

Under the agreement, Trump is shelving a plan to raise existing tariffs of 10 percent to 25 percent from the start of next year. He said he hopes China will criminalize fentanyl, the synthetic form of opioids largely shipped from China. Trump said on Twitter. China responded with tariffs of its own on various USA exports.

During the meeting, Xi also said that he was open to approving a previously rejected takeover deal by Qualcomm Inc.

The truce buys time for the two countries to work out their differences in a dispute over Beijing's aggressive drive to supplant USA technological dominance. Chinese regulators in July blocked Qualcomm's $44 billion takeover bid for its Netherlands-based rival, NXP Semiconductors NV. China gets a delay on additional tariffs, while the USA gets greater purchases of agriculture goods while retaining leverage to push for more structural changes to the economy.

"The relationship is very special", he said.

Xi also expressed his sympathies for the Bush family and said the Chinese foreign ministry conveyed its condolences to them.

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Trump abruptly canceled a planned meeting with Putin at the summit just two days before they were scheduled to sit down. On Saturday, Putin said he hopes a meeting with Trump will take place "when the U.S. is ready".

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Still, analysts cautioned the deal may have only bought some time for more wrangling over deeply divisive trade and policy differences, and said China's economy will continue to cool regardless under the weight of weakening domestic demand. For decades, Beijing hasn't taken any concrete actions to fulfill its promises.

ANALYST'S TAKE: "Markets are reflecting a fragile truce between the USA and China after an initial sigh of relief". Washington and Beijing have also increasingly been at odds over security in the Asia-Pacific region.

Despite the questions, US President Donald Trump was in an ebullient mood, promising benefits to US farmers and auto companies.

According to Masamichi Adachi, a senior economist at JP Morgan in Japan, "I do not think market consensus is looking for very significant progress, this is a temporary truce". Troubles have deepened further with trade tensions, forcing the Chinese regime to come to the table to end the dispute.

Kushner, who has been working on U.S. -Mexico issues, says relations have improved because the countries decided not to work across the table, but on the same side to craft "win-win" solutions to migration, drug trafficking and abuse, and other issues plaguing relations.

'Discussion on economic and trade issues was very positive and constructive.

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