Trump says China's Xi wants a deal to end escalating trade war

Trump says China's Xi wants a deal to end escalating trade war

Asian markets enjoyed another rally on Friday after Donald Trump hailed positive talks with Chinese President Xi Jinping and a report said he had asked officials to draw up a draft bill as he eyes a potential trade deal between the two.

"Those discussions are moving along nicely", Trump wrote on Twitter.

The two countries already have imposed tariffs on hundreds of billions of dollars of each other's goods and Trump has threatened to slap tariffs on the remainder of China's $US500 billion-plus ($A690b) exports to the United States if the disputes can not be resolved.

Meanwhile, Jake Parker, vice-president for China operations at the US-China Business Council, said that the presidents' telephone call created an opportunity for the two countries to discuss their many disputes - from the trade imbalance to China's forced technology transfers - but none of them would be easy to resolve. "China does not want to see this", he said, according to Xinhua.

China's official Xinhua News Agency said that Xi accepted the call at Trump's invitation.

President Donald Trump tweeted on Thursday that he had a "good conversation" with Chinese President Xi Jinping.

Despite the promise offered by the Trump-Xi telephone call, the level of tension between the two nations was demonstrated just hours after it ended when the USA filed charges against Chinese technology firm Fujian Jinhua Integrated Circuit Co and its Taiwanese partner.

White House economic adviser Larry Kudlow said that Trump and Xi might be able to break the logjam on issues during the summit. It was the fourth such case since September alleging Chinese espionage on USA economic interests.

The moves also follow media reports that pointed to progress on the US-China trade dispute.

But Mr Kudlow cautioned that Mr Trump would "aggressively" pursue his agenda against China, if no deals were reached on intellectual property theft, cyber security and tariffs on commodities, among other issues.

U.S. Attorney General Jeff Sessions told reporters that Chinese espionage has been "increasing rapidly", demanding that "cheating must stop".

Xi responded to the call by saying he hopes China and the USA will be able to promote a steady and healthy relationship, Chinese state media reported Thursday.

One person said a sticking point in any potential deal is intellectual property theft, where the Trump administration has sought to take a hard line.

"China has been hurt over the last number of months". "As the president said, we would like to talk to them about it, but they may not be ready".

The United States has targeted US$250 billion ($375.5b) in Chinese products, and Beijing has lashed back by slapping tariffs on US$110 million worth of U.S. goods.

China has responded with retaliatory duties on $110-billion worth of USA goods.

Related Articles