Donald Trump Spins 90 Day China Truce as 'Big Leap Forward'

DEVELOPING: US-China trade uncertainty fuels market plunge

DEVELOPING: US-China trade uncertainty fuels market plunge

According to the agreement, the United States and China will not increase or introduce new tariffs for 90 days.

Yet solving Washington's problems, such as intellectual property violations, cyber theft and Beijing's state-backed economic model, will take patience and diplomacy.

"No magic wand has been waved to make the differences between the United States and China vanish overnight", the state-run China Daily warned.

It remains uncertain how the two sides will resolve underlying United States concerns over trade barriers, subsidies and alleged technology theft. "And that would be to the benefit of everyone".

President Trump left the Group of 20 summit in Argentina with an agreement not to raise tariffs on Chinese goods in the next 90 days, the White House said.

Similar proposals have been on the table since last summer.

US President Donald Trump and Chinese President Xi Jinping have struck a temporary 90-day ceasefire to deescalate trade tensions between the world's two largest economies.

At present, both parties are pleased with the results of the meeting, with President Trump describing it as "amazing, productive... with unlimited possibilities" and Wang Yi, China's minister of foreign affairs, saying that the talks were "very positive and constructive". China even supposedly agreed to bring its tariffs on US cars more in line with its duties on automobile imports from other countries.

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Beijing and Washington now have 90 days to make progress in talks over the main issues, which include U.S. complaints that China forces American companies to hand over technology and steals their intellectual property through hacking.

However, while the agreement provides breathing room for the US and China - and the global trading system as a whole - a final resolution to the US-China trade war remains far from certain.

According to Gonzalo Tordini, an Argentine expert in worldwide economic cooperation, "China's most significant contribution" since launching its reform and opening-up has been reducing poverty. Most U.S. supply of the drug is manufactured in China. "It's a step in the right direction".

For Beijing-based political consultant Hua Po, "this was a rare opportunity for China" to capitalize on what they saw as Trump's compromised position after the midterms. "Many people suspected that there may be a more disastrous outcome, this is definitely a relief".

"The progress made at the talks in Buenos Aires is of momentous significance". Therefore, President Xi has been under pressure to come home with a deal that won't damage Chinese manufacturers.

The US, which has already slapped tariffs on $250 billion of Chinese products, has also threatened Beijing with an additional $267 billion in levies unless China shows a willingness to close the massive trade deficit.

Embracing the concept of an open economy and free trade is what helped China speed up development, enabling it to lift millions out of poverty, Xi noted. "China will be getting rid of many of them". This suggests that both countries have a lot to lose if the trade deal isn't finalised within the newly set 90-day time limit. Ford decided not to import a crossover-ized Focus from China, Volvo began sourcing the XC60 from Sweden rather than from China, Buick considered canceling the American-spec Envision, and Cadillac stopped selling the hybrid CT6 it builds on the outskirts of Shanghai.

Elsewhere, Japan's Nikkei 225 edged 1% higher while South Korea's Kospi gained 1.6% and Australia's ASX 200 closed 1.84% up.

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