China confident of agreeing United States trade deal despite Trump's combative stance

Evan Vucci | AP

Evan Vucci | AP

Over the weekend, a temporary truce was agreed between US President Donald Trump and Chinese President Xi Jinping at the G20 meeting in Argentina.

Trump agreed Saturday to postpone United States tariff hikes in a fight over technology by 90 days while the two sides negotiate.

It described the discussions between Mr Trump and Mr Xi as "successful", adding it was "confident" that their agreement will be implemented "the sooner the better".

"If it is, we will get it done", Mr Trump said in a Twitter post.

"Very strong signals being sent by China once they returned home from their long trip, including stops, from Argentina", he wrote.

"I think that if you put the two press releases together, you can see what basically happened", Cui Tiankai told Reuters in Washington on Monday after returning from Buenos Aires, where he had joined Xi's delegation. ALL subjects discussed!,' he wrote on Wednesday morning.

White House economic adviser Larry Kudlow said earlier this week the US won Chinese commitments to buy more than $1 trillion in American products.

The spokesperson did not say specifically what would be included in the agreement, but noted that specifics issues that have reached consensus will be first and foremost. At the end of the day, two realities remain: the now an energy (oil and gas) producing super power alongside the ranks of Russian Federation and Saudi Arabia, while China, conversely, is the world's largest energy consumer, which gives it less leverage in ongoing trade and even geopolitical negotiations and developments. He said China discussed up to $1.2 trillion in commitments that could potentially help reduce the US trade deficit.

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In return for the postponement in the higher USA tariffs, the White House said China had agreed to step up its purchases of US farm, energy and industrial goods.

Earlier this year Trump imposed an import tax of 25 percent on $50 billion in Chinese products, then hit an additional $200 billion worth of goods with 10 percent tariffs. China's crude oil imports from the USA had ground to a halt. US markets were closed on Wednesday to observe former President George H.W. Bush's death, but the effect of Wall Street's turmoil the previous day was felt in Europe and Asia with the benchmark Shanghai stock index closing down 0.6 percent.

'People are still very concerned about the trade war, ' Dan Suzuki, portfolio strategist at Richard Bernstein Advisors told CNN.

Diess said he thought the companies had "made a big step forward to avoid the tariffs".

Trump and Xi also 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, according to the White House statement.

Former U.S. State Department official Mintaro Oba said the fact that Trump's statements about the meeting don't match the official White House version of what happened at the G20 means Trump's claims should be taken with a grain of salt.

Mr Xi and his most senior officials, including the Commerce Minister and the country's two top diplomats, are in Portugal, and due back in China on Thursday. This article is strictly for informational purposes only.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. It is not a solicitation to make any exchange in commodities, securities or other financial instruments.

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