Trump Says He Would Meet Xi Again, Hails China Soybean Purchases

Trump Says He Would Meet Xi Again, Hails China Soybean Purchases

Trump Says He Would Meet Xi Again, Hails China Soybean Purchases

China has agreed to cut tariffs on autos imported from the United States, and resume soybean purchases, Commerce Secretary Wilbur Ross said Wednesday, confirming the reports that delighted investors. "It looks like we're back in business now", the second USA trader said.

The latest United States moves follow debates within the Trump administration about imposing sanctions on Chinese entities caught stealing USA intellectual property through cyber attacks, three people familiar with the matter said.

Trump told Reuters in an interview that the Chinese government was "back in the market" to buy soybeans after a December 1 truce in the U.S.

News of the move, also reported by other media outlets and automotive executives briefed on the talks, boosted automakers' shares and helped lift USA shares more broadly before worries about a US government shutdown prompted a pullback. The strategy is core to China's aim to transform itself into a global superpower by 2050, and rival US dominance in sectors such as semiconductors, robotics, aerospace, clean-energy cars and artificial intelligence. Currently, US$50 billion worth of Chinese goods are already taxed at 25%.

Stock markets aroused on Wednesday as U.S. President Donald Trump sounded energetic about an economic agreement with China, while sterling rose off multi month lows as Prime Minister Theresa May promised to battle a test to her initiative.

US exports of cars and light trucks to China were worth $9.5 billion in 2017 and have dropped off significantly since China imposed its retaliatory tariffs over the summer that gave exporters in Europe and Japan a significant advantage.

USA soybean farmers had long seen China as a favorite destination-for their crops.

The two sides are expected to negotiate over USA demands for stronger Chinese protections for US intellectual property, an end to forced technology transfers and greater market access to China for USA companies. China's decision came amid a period of heightening tensions between the USA and China over trade and intellectual property issues.

Still, U.S. equities finished well off their session highs and traders were not convinced the market was ready for a sustained move upward after two-straight days of gains.

Officials at the White House and OMB did not immediately respond to requests for comment.

Citing industry sources, the U.S. soybean council said state-owned firms from China are stocking up their purchases in the product, and the shipments are expected to take place before March next year. Another trader with direct knowledge of the deals and one who sells beans to exporters involved said around 30 cargoes had traded by Wednesday afternoon.

Growing concerns that the trade war will increasingly hurt corporate earnings and the us economy are a key reason why USA stock prices have been sinking this fall. This year, it dethroned Apple as the world's second largest smartphone maker.

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