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Published: Wed, May 23, 2018
Sport | By Billy Aguilar

Limited truce in US-China trade conflict

Limited truce in US-China trade conflict

For months, Trump railed against China to cut its trade surplus with the United States and threatened higher tariffs.

One of China's trade demands in talks with the US this month included removing a ban on selling integrated circuits to the Asian nation. The company has suffered since the United States prevented it from purchasing US components.

In this April 30, 2018, file. He later tweeted that the ZTE talks were "part of a larger trade deal" being negotiated with China.

Shares added 1.9% to US$15.26 before the bell as reports emerged that the conglomerate was preparing and nearing a merger between its transportation business with rail equipment maker Westinghouse Air Brake Technologies Corp (NYSE:WAB), or Wabtec, in a huge US$20 billion deal that could come within days.

President Donald Trump later said that he was working with the Chinese government on a solution to save ZTE, but that didn't work out.

There were, however, more questions for the Trump administration, which stands accused by critics of selling out on plans to stop the theft of USA companies' trade secrets in exchange for a quick deal to reduce the US trade deficit.

In the short run, a truce in the trade conflict between the United States and China has lightened tensions, halted the immediate threat of USA tariffs on China's goods and cheered stock markets.

Since the meetings concluded, the Trump administration has appeared to offer mixed messages about the status of the discussions and whether China had actually agreed to buy an additional $200 billion of USA products to reduce the trade deficit, as administration officials had previously indicated.

The U.S. -China trade truce drew fire from some who had applauded Trump's campaign pledge to overturn decades of U.S. trade policy and crack down on China and other trading partners they accuse of abusive practices.

The president's trade representatives blitzed the business networks on Monday morning trying to tamp down expectations however for a potential deal while Trump was on Twitter talking up one
Dow Closes Above 25000 As China Trade War Fears Fade

"The objective was not to put ZTE out of business", Mnuchin said.

He added: "Fair Trade, plus, with China will happen!" China counterpunched with tariffs on USA products, rattling the market.

Mei Xinyu, a Commerce Ministry researcher, wrote on the WeChat account of the overseas edition of the ruling Communist Party's official People's Daily that the agreement preserved China's right to develop its economy as it sees fit, including moving up the value chain. "The framework deal reported this weekend only makes it worse", Stumo said.

Liu, just returned from the United states, referred to the talks as "positive, pragmatic, and productive" with some important consensuses reached. "Instead, it stood firm and continually expressed its willingness to talk", the English-language newspaper said in an editorial.

Both sides, however, have said there are no guarantees trade tensions are over. Those tactics include outright cyber theft of trade secrets and demands that American companies hand over some of their technology in exchange for access to the Chinese market.

Earlier today, Steve Mnuchin told the business channel CNBC that the USA has made "very meaningful progress" with China on trade matters since trade talks kicked off last week.

But Jacob Parker, vice president of China operations at the U.S.

"We were never supportive of tariffs, so any actions that can be taken to stop those from being implemented are positive from our view", Parker told Reuters. The dollar also gained against a basket of currencies.

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