China-US trade: China vows speedy action on trade commitments

China and the USA announced a truce in their trade war after the meeting between Trump and Xi Jinping on Saturday, but that quickly descended into confusion, with both sides announcing different statements on what was agreed.

"The economic and trade teams of the two sides will actively promote the consultation work within 90 days in accordance with a clear timetable and road map", the officials said.

Gains in technology companies helped drive the market higher. On Wall Street, the Dow Jones Industrial Average, the S&P 500 and the Nasdaq Composite all gained more than 1 percent. Fentanyl, mixed in with heroin, has caused a spike in drug overdoses in the U.S.

Mnuchin said for the first time there was "a clear path" to reduce the U.S. trade deficit with China to zero.

White House economic adviser Larry Kudlow said the figure was a broad benchmark that would depend on private transactions for U.S. goods and was subject to market conditions.

Mr Trump has long accused China of unfair trade practices that hurt United States citizens and the economy.

The U.S. imposes a 27.5-percent tax on imported cars and light trucks from China.

"We anticipate that things are still likely to get worse before they get better", Craig said, warning the trade tensions will fuel more market volatility.

Chinese purchases for the aforementioned products have almost completely halted after Beijing imposed tariffs on them in response to the USA tariffs on Chinese goods.

Trump's promise gives Xi political room to negotiate after Beijing said earlier talks were impossible while Washington "holds a knife" of tariff threats to China's throat. But nothing beyond their official statements exists and deep divisions remain, particularly related to China's industrial policies and its treatment of USA companies.

Traders work on the floor of the NYSE in New York 19/11/18
Image US stock markets endured a bruising session on Tuesday amid doubts a US-China deal is possible

The Commerce Ministry spokesman, Gao Feng, said Thursday that talks will start by focusing on trade in farm goods, energy and cars. -China trade cease-fire, contributing to a broad stock market plunge and intensifying fears of a global economic slowdown.

In addition, Treasury Secretary Steven Mnuchin said Tuesday on the Fox Business Network that China agreed to buy $1.2 trillion of US products.

Weinberg derided the USA statement which said "China will agree to purchase a not-yet-agreed-upon but very substantial, amount" of goods. "And we know that", Kudlow said. "Farmers, I LOVE YOU!" the United States president tweeted.

Kudlow said: "They can not slow walk this, stall this, meander this".

Despite the major agreements, . none of the commitments were agreed to in writing, . and the specifics have yet to be hammered out. That, coupled with conflicting statements by Trump and US officials, helped trigger a tumble in USA stock prices Tuesday amid doubt about the chances for a lasting settlement of a battle over technology that threatens to chill global economic growth.

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

Daimler AG CEO Dieter Zetsche will be attending the White House meeting.

But Mnuchin said, "I think there's no question the president's tariff strategy has worked".

"So, again this will be a real agreement again and not that we can accomplish everything in 90 days but we expect to make a lot of progress and President Trump will be directly involved", Treasury Secretary Steven Mnuchin told Fox Business Network on Tuesday. China's commerce and finance ministries did not respond to requests for comment on Monday.

Chinese officials have been told to take necessary steps for the soybeans and liquefied natural gas purchases, according to two officials with knowledge of the discussions. This article is strictly for informational purposes only.

Vanessa Coleman