Donald Trump-China trade deal unravels

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Donald Trump-China trade deal unravels

The two leaders on Saturday agreed to the ceasefire in a trade war that has seen the flow of hundreds of billions of dollars worth of goods between the world's two largest economies disrupted by tariffs.

In a brief statement, China's commerce ministry described the two sides' discussions as "successful", adding it was "confident" of their agreement's implementation. "President Xi and I want this deal to happen, and it probably will", Trump tweeted on Tuesday.

Trump tweeted early Wednesday that Beijing is sending "very strong signals" about a new trade framework since returning from talks over the weekend in Buenos Aires.

China could be preparing to spring a global compact to drive tariffs to zero, and approach Trans-Pacific Partnership (TPP) members including Australia for access to the grouping, positioning Beijing as a champion for free trade.

For its part, Beijing "issued an upbeat but vague promise Wednesday to carry out a tariff cease-fire with Washington but gave no details", The New York Times pointed out, adding that China has yet to confirm Trump's notion that Beijing would cut auto tariffs and buy more USA farm products.

USA negotiators have a list of 142 requirements that China has to agree to before it enters into a trade deal.

When asked about structural changes the United States had made as a prerequisite to any trade deal, Mnuchin said he expected some things to be implemented "on a rolling basis" in phase two.

Ahead of his attendance at former President George H.W. Bush's state funeral Wednesday, President Donald Trump took to Twitter to express optimism about the state of trade negotiations with China following Tuesday's stock market plunge.

Trump "shared his vision of all automakers producing in the United States and creating a more friendly business environment", the White House said in a statement afterward.

Stocks in the U.S., Europe and Asia fell sharply after Trump declared himself "a Tariff Man" who wants "people or countries" with intentions to "raid the great wealth" of the U.S.

Trump has long accused China of unfair trade practices that hurt Americans and the USA economy.

Instead, the two sides are to negotiate over USA complaints about China's trade practices, notably that it has used predatory tactics to try to achieve supremacy in technology.

Following these tweets, Trump advisors like Treasury Secretary Steve Mnuchin and top economic adviser Larry Kudlow were left to lower expectations and admit that while a number of issues had been discussed between the two sides, essentially no actual agreements had been reached.

"Ninety days is very little time to fix these perennial issues", said Bill Adams, senior economist at PNC.

China has made no direct mention of specific goods it will buy.

China has said comparatively little about the Trump-Xi agreement after senior Chinese officials briefed the media following the meeting, and USA and Chinese accounts of what the deal entails have sometimes differed.

Mr. Kudlow said at an event hosted by The Wall Street Journal that he sees no recession on the horizon for the USA economy.

"Officials now face the hard task of fleshing out a deal that is acceptable to the Chinese but also involves significant enough concessions not to be torpedoed by the China hawks in the Trump administration", Capital Economics said in a note this week.

Global financial markets tumbled on Tuesday as doubts over what could realistically be accomplished in the tight negotiating window added to concerns about fading global growth.

In return, Washington said China would purchase "very substantial" amounts of U.S. agricultural, energy, industrial and other products. Ben Sasse, a Nebraska Republican and opponent of Trump's tariff policy, criticized the president's tweets on that basis.

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