Trump Delays China Tariffs; Currencies Gain Ground

Trump Delays China Tariffs; Currencies Gain Ground

In recent talks, Beijing offered to increase purchases of US farm and energy products and services, ease restrictions on USA firms in financial services and auto manufacturing and improve protection of USA intellectual-property rights, according to the Wall Street Journal.

Trump is planning to meet with Chinese PM Xi Jinping at his Mar-a-Lago resort in Florida.

"Substantial" progress was made on "specific issues" as the latest round of trade talks concluded, China's official Xinhua News Agency reported, without giving more details.

Shares in Asia have risen on the back of Trump's signal that the trade war may be coming to an end.

Negotiators have struggled this week to overcome differences on specific language to address tough USA demands for structural changes in China's economy, two sources familiar with the talks said.

President Trump is doing what was once thought impossible by closing in on a deal with China on trade and for now, he has postponed increasing tariffs while the final terms of the agreement are hammered out.

The president did not set a new date for imposing the higher tariffs should the talks not yield results.

Overnight, stocks closed modestly higher after shedding most of their gains from an early rally spurred by the Trump administration's decision to hold off on a March 2 increase in punitive duties on $200 billion worth of Chinese imports.

Talks were extended into the weekend after negotiators produced a deal on currency during negotiations last week. "A very good weekend for United States and China!" The issues include an enforcement mechanism to ensure that China complies with any agreements.

USA semiconductor, chemical and auto firms, in particular, complain that Beijing has a variety of ways to obtain US technology, including by joint-venture requirements and by regulatory panels that pass along USA technology secrets to Chinese firms.

The person said a draft agreement on China's technology transfer policies - one of the toughest issues - took shape over the course of the week.

Tim Stratford, chairman of the American Chamber of Commerce in China, speaks before a news conference in Beijing on Tuesday.

The trade war between the United States and China has cast a shadow on global markets.

U.S. Agriculture Secretary Sonny Perdue called China's pledges to purchase U.S. agricultural produce premature.

As President Donald Trump looks to finalize a trade agreement with China - he tweeted on February 25 that a deal was in its "advanced stages" - one thing he should be sure to gain concessions on is the cost advantage Beijing possesses because of the excessive regulatory environment in Washington, D.C.

Gross domestic product will expand at a slower pace this year in both countries, according to analysts surveyed by Bloomberg.

He didn't specify how long the extension of a trade truce would be or when a summit might be scheduled. After suffering its worst December since the Great Depression, the S&P 500 Index rebounded nearly 8 percent in January and is up about 3 percent this month.

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