Published: Tue, August 27, 2019
Worldwide | By Lisa Hogan

China willing to resolve trade dispute with USA via dialog -newspaper

China willing to resolve trade dispute with USA via dialog -newspaper

The U.S. president said China had contacted U.S. trade officials to say they wanted to return to the negotiating table.

The statement comes after US President Donald Trump on Friday announced an extra 5% duty on some US$550 billion (RM2.3 trillion) of Chinese goods, following China's announcement of retaliatory tariffs on US$75 billion of imports from the United States.

Quoting unnamed sources, Axios reported that the USA president said in a meeting with top national security and homeland security officials about the threat of hurricanes: "I got it".

Earlier in the session, Chinese Vice Premier Liu He said that China is willing to resolve its trade dispute with the United States through "calm" negotiations and resolutely opposes the escalation of the conflict.

China is willing to resolve its trade dispute with USA through "calm" negotiations and opposes escalation of the conflict, Vice Premier Liu He said.

The move was the latest salvo in a bitter tit-for-tat war which has seen the USA impose tariffs on more than $250bn (£204bn) of Chinese goods.

Shares in Apple, which builds most its iPhones in China, and a number of chipmakers including Intel and Broadcom, tumbled on Friday after Mr Trump tweeted that he "hereby ordered" USA companies to bring their supply chains "home".

The Nasdaq Composite added 70.95 points, or 0.92%, to 7,822.72 were up 41.75 points, or 0.56%.

Trump had hoped to use the summit to rally other leaders to do more to stimulate their economies, as fears rise of a potential slowdown in the USA before he stands for reelection in November 2020.

But hours later, White House press secretary Stephanie Grisham issued a statement saying Trump's comments about USA tariffs on China were "greatly misinterpreted".

The price of benchmark crude gained 9 cents to $54.26 a barrel. The president has previously criticized China for sending large amounts of the deadly opioid, fentanyl, into the United States via the USA postal system and over the southern border via Mexico.

The market is now dominated by fears of a portending USA recession, although the American economy is actually holding up, and much of the US economy is made up of consumption, Innes said.

He cited China's theft of intellectual property and the large USA trade deficit with China, saying "in many ways that's an emergency".

Despite Trump's downplaying of the situation, Chinese currency Renminbi weakened to a new 11-year low on Monday.

In China's onshore market, the yuan fell to 7.1500 per dollar, the lowest since February 2008.

The two sides were due to meet in September in Washington, but it was unclear whether the new tariff tit-for-tat would alter those plans. But the president also appeared to back off of his threat to order USA companies out of China.

Chinese state media on Monday hit out at the United States.

Sterling fell 0.3% to $1.2239 as investors waited for the next developments in Britain's bid to get the European Union to renegotiate its Brexit withdrawal agreement.

"Escalation of the trade war could extend the bond rally further, with increased probability that US 10s revisit all-time yield lows set in 2016", wrote a team of strategists at Goldman Sachs including Praveen Korapaty.

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