US Should Avoid "Strategic Misjudgement", Says China Amid Trade War

A woman passes an electronic board showing the Hong Kong share index outside a bank in Hong Kong on Dec. 31 2018

A woman passes an electronic board showing the Hong Kong share index outside a bank in Hong Kong on Dec. 31 2018

The two nations have been engaged in a tariff trade war for much of 2018, after the Trump administration first imposed almost $250 billion worth of tariffs on Chinese goods to force Beijing to end its unfair practices.

Also in Argentina, the United States and China reached a 90-day agreement to postpone more tariff hikes and allow for further negotiations, after Xi agreed to purchase "a very substantial amount" of American goods, including in the agricultural, energy, and industrial sectors, to reduce the USA trade deficit with China.

China's President Xi Jinping (L) and US President Donald Trump discussed the tariff war on more than $300 billion worth of goods. US Trade Representative Robert Lighthizer, whom Mr Trump named to be in charge of the China talks, is not scheduled to join the delegation. A standstill agreement reached between US President Donald Trump and his Chinese counterpart on the margins of the G20 summit at Buenos Aires in November deferred the imposition of tit-for-tat tariffs by the two countries till March.

"If made, it will be very comprehensive, covering all subjects, areas and points of dispute", Trump said.

After a spate of tit-for-tat slapping of additional tariffs on each other's exports, both countries declared truce till March 1 next year to reach an agreement on Trump's demand that China should reduce the United States dollars 375 billion bilateral trade deficit.

Sunday's statement from Lu Kang, the spokesperson for the country's foreign ministry, appeared to confirm President Trump's optimism.

"Hopefully, the working groups of both countries will make steps toward each other in order to reach as soon as possible the mutually beneficial agreement that will be also in the interest of the whole world", Xi said, as quoted by Xinhua. "Big progress being made!", Trump said on Twitter.

Mr Trump agreed not to boost tariffs on Chinese goods from 10% to 25% on 1 January, and the U.S. said China would buy a "very substantial" amount of agricultural, industrial and energy products. The first quarter of 2019 will be pivotal, as the USA and China are trying to deescalate a trade war and Trump will have to decide whether to hit vehicle imports with tariffs.

It could take the White House several months to draw up its final plans, former government officials said.January 21: Formal talks to negotiate the U.S. -Japan Trade Agreement could start.

The dinner meeting between Trump and Xi went 'very well, ' said White economic adviser Larry Kudlow to reporters before Air Force One left Argentina to return to Washington.

Meanwhile, the Chinese Foreign Ministry said that the U.S. should take more objective view of China's development.

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