China trade vow after Trump talks helps settle financial markets

China trade vow after Trump talks helps settle financial markets

China trade vow after Trump talks helps settle financial markets

"People are still very concerned about the trade war", Dan Suzuki, portfolio strategist at Richard Bernstein Advisors told CNN Tuesday. These projects not only need to sign long-term off-take agreements with Chinese entities, but many of them, particularly newcomers not backed by more experienced oil and gas majors, will need Chinese financing to go ahead. But they plunged Tuesday after Trump called himself "Tariff Man" on Twitter and renewed threats of penalty duties.

The US expects action "immediately" from China and will know "soon" whether Beijing is serious.

Beijing's decision to keep things vague, for now, may reflect a desire to avoid being seen as having capitulated under pressure - the sides have 90 days to reach a deal - or may be a hedge against Trump's unpredictability, analysts said.

"Tariffs on USA soybeans might drop as the two sides enter a honeymoon period".

But that premium has been significantly eroded in recent weeks after China built up large soybean stocks, and demand for soymeal declined in the wake of an African swine fever epidemic ravaging the country's huge hog herd.

Trump on Wednesday touted Beijing's agreement to designate Fentanyl as a Controlled Substance.

Last week, the S&P 500 gained 4.8 percent as investors interpreted commentary from the Federal Reserve as signaling that US interest rate hikes may be less aggressive than feared.

Weinberg derided the U.S. statement which said "China will agree to purchase a not-yet-agreed-upon but very substantial, amount" of goods.

Consider how China has played this game. If China cracks down on this 'horror drug, ' using the Death Penalty for distributors and pushers, the results will be incredible!,' Trump wrote in a pair of tweets.

"I'm taking President Xi at his word, at his commitment to President Trump". "I think there is a specific understanding that we are now going to turn the agreement the two presidents had into a real agreement in the next 90 days", he told reporters. 'Maybe that's why I'm here'.

Additionally, in what the White House termed a "humanitarian gesture" in aid of the US battle against opioid addiction, President Xi agreed to designate Fentanyl as a controlled substance, subjecting those exporting the drug to the U.S.to the "maximum penalty" under Chinese law.

And in a move that could signal a tough negotiation ahead, Kudlow said that Robert Lighthizer, the USA trade representative, would be formally taking over as the lead negotiator to hammer out a deal.

Many economists have expressed skepticism that very much could be achieved to bridge the vast disagreements between the two countries in just 90 days.

The White House says the deal with Xi will see China buy large amounts of U.S. agricultural produce to close the trade deficit and includes an agreement by Beijing to curtail the flow of fentanyl, a powerful opioid, into the US.

White House National Security Adviser John Bolton told the Wall Street Journal event on Tuesday that Chinese theft of USA intellectual property was among the administration's top concerns.

The meeting was the first face-to-face encounter between the leaders in more than a year, a period that saw the Trump administration impose tariffs on billions of dollars in Chinese imports in a bid to force Beijing to halt trade practices the USA considers unfair.

The White House on Saturday night had signaled a big win after trade talks over dinner between Trump and Chinese President Xi Jinping that included a US freeze on tariffs on Chinese goods going to 25 percent on January 1 and China buying more American agricultural goods.

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