Markets surge as Trump tweet lifts trade hopes

Changing China's economic model might ease external and domestic pressures on the economy

Changing China's economic model might ease external and domestic pressures on the economy

Trump has teased a victory in the trade war ahead of next week's crucial midterm elections, claiming that Chinese President Xi Jinping is eager to make a deal at their expected meeting on the sidelines of the G20 summit of global leaders in Argentina later this month.

Trump said trade talks were "moving along nicely" and that meetings were "being scheduled" at the G-20 summit planned in Buenos Aires at the end of this month. "Also had good discussion on North Korea!"

The U.S. president said Wednesday that he'd like to sit down and make a "fair deal" with China on trade that would eliminate the need for the massive tariffs he's put on the nation.

The US is preparing to announce by early December tariffs on all remaining Chinese imports if talks between Trump and Xi fail to ease the trade war, three people familiar with the matter said. He said further meetings with Xi are being scheduled for the G-20 summit of the world's biggest economies, set for November 30 in Buenos Aires, the first ever such summit in South America.

Team Trump on Friday threw cold water on reports that the administration was close to cutting a trade deal with China.

The telephone conversation on Thursday was Trump and Xi's first publicly disclosed call in six months.

"We're optimistic this is a potential off-ramp of increasingly antagonistic trade tensions and hope it leads to a pause and new negotiations", he said.

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"He wants to do it", Mr Trump said of Mr Xi.

Earlier this week, Trump said he thought there would be "a great deal" with China on trade, but warned that he had billions of dollars worth of new tariffs ready to go if a deal did not materialize.

Federal Bureau of Investigation director Christopher Wray said the USA has filed a civil lawsuit seeking to prevent the two indicted companies, Taiwan-based United Microelectronics Corp. and China's state-owned Fujian Jinhua Integrated Circuit, from exporting any products created using US trade secrets and blocking the further transfer of trade secrets.

Both the U.S. and China have sought to portray the personal relations between the two leaders as a source of stability in the relationship, and they have refrained from direct criticism of each other.

The US this year has already imposed tariffs on US$250 billion in trade with China.

One person said a sticking point in any potential deal is intellectual property theft, where the Trump administration has sought to take a hard line. In response, Beijing said it would impose taxes on 5,207 USA imports worth about $60 billion.

Tensions have increased in recent months with United States officials accusing China of meddling in the U.S. midterm elections, conducting cyber espionage and military aggression.

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