Trump, Xi optimism for trade after a phone call; The US is targeting more Chinese businesses

US President Donald Trumbas and China's President Xi Jinping, who spoke on Thursday, expressed optimism for resolving their trade dispute before a high-stakes meeting in late November in Argentina.

FILE PHOTO: Container truck next to a container ship at a port in Zhoushan, Zhejiang province, China October 31, 2018. REUTERS / Stringer

However, within a few hours of dignified assessment, the US Justice Department targeted another Chinese company accused of unfair practices, part of a multi-disciplinary pressure campaign from the Trump administration aimed at China.

Still, investors have called for a resumption of dialogue and report that Trump has taken steps to resolve the war on tariffs, with Asian shares hitting Friday for three weeks and the softer dollar.

Trump told Twitter that trade talks with China are "moving well" and that he was planning to meet Xi on the sidelines of a G20 summit in Argentina after the two had a "very good" phone conversation.

Bloomberg, citing people familiar with the issue, later said that Trump wants to reach a trade deal with China at the G20 meeting and that after calling with Xi, he asked officials to start drafting possible terms.

The news agency said it was unclear whether Trump had received his request that China resisted and referred to a person who said that theft of intellectual property was a sign of a possible deal.

In comments to the state media, Xi said she hopes that China and the United States will be able to promote a solid and healthy relationship and that she was willing to meet with Trump in Argentina.

"The trade groups of the two countries should strengthen contacts and hold consultations on issues that concern both sides and promote a project that both can accept to reach a consensus on China-US trade. , "Xi said on state-run CCTV.

Xi said after the invitation with Trump that they hope to expand trade co-operation.

Neither the leader has clarified details of possible progress in their first known direct debate over several months.

Officials from the Trump government said talks with China could not resume until concrete steps are being taken to meet US demands for far-reaching changes in technology transfer, industrial subsidies and market access policies.

The two countries have levied hundreds of billions of dollars in the other goods and Trump threatens to set tariffs on other $ 500 billion worth of exports to the United States if the differences can not be resolved.

Jacob Parker, vice president of China's operations at the US-China Business Council in Beijing, said there were many challenges that would require significant negotiations before a meeting between Trump and Xi to ensure success.

"What are the negotiations that so far have not existed was the (presidential) level of involvement. If President Trab agrees with President Xi, there is no one over them to overturn it," he said.

"We are optimistic, this is a possible deadlock in the increasingly competitive trade tensions and we hope it will lead to pauses and new negotiations," he said.

Tu Xinquan, a trade expert at Beijing University of International Business and Economics, said he was skeptical that Trump's administration was genuinely ready to face, and that other factors, such as the Congress's mid-term elections, could lead to statements by the administration .

"The best situation (from a Trump-Xi meeting) would not be a temporary move, but the tariffs that have already been imposed will not disappear," Tu said.


Immediately following the intense reading of the Trump-Xi invitation, the Justice Ministry announced the latter in a list of actions against the Trump government calling for China's deception through theft of intellectual property, unfair corporate subsidies and rules that hindered US companies in China.

An indictment of the justice department targeted two China-Taiwan-based companies and three people, saying they conspired to steal commercial secrets from the American semiconductor company Micron Technology Inc.

This week, prosecutors announced an indictment against 10 indictees, including two Chinese officers and other computer hackers and co-conspirators accused of crossing the US company's computers to steal data about a turbo fan motor used in commercial aircraft.

On Wednesday, US Secretary of State Mike Pombeo said China was probably the biggest challenge for Washington's security and that the United States was engaged in a "multi-level effort … to convince China to behave as a normal nation in trade" INTERNATIONAL LAW.

However, Trump hit a more pleasant tone on Twitter after making a phone call with Xi.

"He just had a long and very good conversation with President Xi Jinping of China. We talked about a lot of issues, with great emphasis on Commerce," Trump tweeted. "These discussions are accompanied by good meetings scheduled at the G20 in Argentina, and also good talk about North Korea!"

Presentation of slides (6 Images)

Earlier this week, Trump said he thought there would be a "big deal" with China on trade but warned he had billions of dollars worth of new invoices ready to leave if no deal was reached.

The United States has imposed Chinese $ 250 billion in $ 200 billion in US $ 200 billion in tariffs to increase to 25 percent from 10 percent on January 1, 2019.

China responded with retaliation to US $ 110 billion worth of US goods.

Report by Susan Heavey, David Brunnstrom and David Lawder in Washington. Joseph Campbell, Yawen Chen and Ben Blanchard in Beijing and Brenda Goh in Shanghai. Editing by Simon Cameron-Moore and Clive McKeef

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