Published: Sat, November 03, 2018
Money | By Ethel Goodwin

Donald Trump Expects "Very Good" Trade Deal With China

Donald Trump Expects

"We have already put out asks to China with respect to trade", said Kudlow, who served as the Trump campaign's senior economic adviser.

News signaling improvements in US-China ties, in turn buoying the markets, would provide the president a chance to vie for support in midterm elections Tuesday that will decide whether the Republicans keep control of Congress.

In recent months China has repeatedly questioned the US's sincerity in trade talks, wary of agreeing to something only to have Trump change his mind.

Officials are working to resolve differences ahead of upcoming talks between President Trump and his Chinese counterpart 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.

"Positive comments from President Trump over US-China trade tension are cheering the market in the short term", said Tai Hui, chief market strategist for Asia Pacific at JP Morgan Asset Management. These include outright cybertheft and forcing U.S. companies to hand over trade secrets as the price of admission to the Chinese market.

"We are getting much closer to doing something", Trump said.

Trump has imposed penalty tariffs of up to 25 per cent on $250 billion of Chinese goods in a dispute over Beijing's plans for state-led development of technology industries.

China and the US, the world's two largest economies, are in a bitter trade dispute.

Xi on Thursday said he looks forward to meeting with Trump in Argentina and hopes the two sides build stable relations, according to China's state media.

Kudlow believes China is getting isolated in the ongoing trade war, as the United States, Japan, and the European Union officials met in September in NY on the sidelines of the U.N. General Assembly and reached a deal to tackle China's unfair trade practices.

Fujian Jinhua Integrated Circuit Co and Taiwan's United Microelectronics Corp were indicted along with three individuals, the Justice Department said. -China Business Council in Beijing, said there were plenty of challenges that would require significant negotiations in advance of a meeting between Trump and Xi to ensure success. They also agreed to meet on the sidelines of the Group of 20 summit meeting in Buenos Aires, Argentina, at the end of the month.

Lu Xiang, a specialist on U.S. affairs at the Chinese Academy of Social Sciences, said that Beijing had been preparing for a "worse than the worst" confrontation with the United States, and added that any further escalation would be fatal to an already highly volatile USA stock market.

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

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