US, China agree to cut massive American trade deficit

Dow Jones surges 298 points over subsiding US-China trade tensions

Dow Jones surges 298 points over subsiding US-China trade tensions

The world's biggest economies agreed to place "on hold" their trade differences, dialling back their threats to impose tariffs on each other.

Bannon's comments came after Mnuchin said on "Fox News Sunday" that the US had put the tariffs for China on hold while they try to execute the framework. Markets in Hong Kong and South Korea were closed for holidays.

Here's where the difficulties are likely to arise. Yet it's far from clear that a fragile truce between the United States and China can hold. China threatened equal retaliation, including tariffs on some of its largest US imports, including soybeans and other agricultural commodities.

Among those unable to celebrate the apparent trade truce were metal stocks that had stood to gain from reduced Chinese imports: AK Steel fell 5.1 percent and US Steel sank 3.8 percent.

"Tens of millions of American jobs" could be at stake, he added. Businesspeople and economists say Communist leaders who see their development model as a success are unlikely to agree to more than minor changes.

"It isn't a line in the sand".

Likewise, China's foreign ministry said details still have to be worked out. "It's China's plan to win the future".

If China were to fill every drop of uncontracted LNG with USA gas, that would amount to about $20 billion a year in purchases by 2030.

But experts are skeptical that the United States will be able to get Beijing to significantly close its $375 billion trade surplus.

"Until we see some hard evidence that some major concessions have been made or whatnot, we're kind of taking a wait-and-see approach", Brink said.

The difficulty of achieving a big change in the headline number could result in "disappointment on the U.S. side", he wrote in a note to clients.

"The Trump administration seems eager to engineer at minimum a temporary peace with China to ensure a smooth run-up to the Kim-Trump summit in June", Prasad said, referring to the June 12 meeting between President Donald Trump and North Korean leader Kim Jong Un. But Beijing has shot down suggestions it put a dollar figure on its offer.

"Energy exports to China are already soaring", Derek Scissors of the conservative American Enterprise Institute wrote in a blog post.

China's government Monday praised a significant cooling of trade tensions with the United States, saying agreement was in both nations' interests while state media trumpeted what it saw as Beijing's refusal to surrender to US economic threats.

On Monday, Trump defended his administration's trade tactics on Twitter.

Sen. Mark Warner of Virginia, the top Democrat on the Senate Intelligence Committee, called Trump's intervention in the case "outrageous" and said that using ZTE "as a bargaining not in the best interests of our national security".

"This is not a giant purchase order government to government - we now have to execute on this, and China has to execute on this", Mnuchin said.

But his comments sparked a backlash in Washington.

Still, the talks, which began Thursday and ended Saturday with the issuance of a joint statement, may have helped to ease tensions at least slightly between the world's two biggest economic powers.

ZTE "may be part of the overall trade discussion, but it really is an enforcement action" being managed by the Commerce Department, Kudlow told ABC.

Even so, Kudlow said, "Do not expect ZTE to get off scot free".

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