China to 'immediately' implement USA trade truce measures

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U.S. President Donald Trump, Secretary of State Mike Pompeo, national security adviser John Bolton and Chinese President Xi Jinping attend a working dinner after the G20 leaders summit in Buenos Aires, Argentina, on December 1, 2018.

Tuesday's sharp stock fall followed another set of Trump tweets in which he renewed the tariff threat if China did not change its trade restrictions.

The mood has quickly soured, however, on scepticism that the two sides can reach a substantive deal on a host of highly divisive issues within the 90-day negotiating period, and markets continued to slide on Wednesday in part from confusion over the ceasefire's lack of detail.

Sources told Reuters that Chinese oil trader Unipec plans to resume buying US crude by March after the Xi-Trump deal reduced the risk of tariffs on those imports.

On Wednesday, Trump cited reports that China was preparing to import more soybeans and liquified natural gas, as proof that his deal was working. In May, Trump disavowed a joint statement the two countries agreed to in Beijing that made vague pledges for China to buy more agriculture and energy exports.

China vowed Wednesday to move swiftly to strike a trade consensus with the United States, even as mixed signals on the detente from self-described "Tariff Man" Donald Trump's administration upset global markets. While toy makers in China such as Lung Cheong haven't been hit by the US tariffs so far, they are nervous about the fallout should the two nations fail to find common ground in the next three months.

Among the conflicting assertions that White House officials made was over whether China had actually agreed to drop its 40% tariffs on USA autos.

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Chinese regulators declined to clear the deal, though the country later expressed regret over the transaction's collapse. The $3.4 billion (about Rs. 24,000 crores) deal, announced in March, is still awaiting Chinese regulatory approval.

Gao's briefing came hours after the trade detente risked being rattled by the arrest in Canada of a top executive from Chinese telecom giant Huawei at the request of the United States. On a deeper level, however, the truce is between competing factions within the Trump administration that disagree fundamentally over how to pursue relations with China.

But China later broke its silence on the truce with a spokesman saying that the negotiations have a timeline and China plans to quickly work on the "agreed upon consensus".

"President Xi and I want this deal to happen, and it probably will", Trump said in a post on Twitter.

BMW, the largest exporter of American-made vehicles has been planning to boost output of utility vehicles from its Spartanburg, South Carolina plant with the launch of its new flagship, the X7 SUV - many of them bound for China.

"So, again this will be a real agreement again and not that we can accomplish everything in 90 days but we expect to make a lot of progress and President Trump will be directly involved", Treasury Secretary Steven Mnuchin told Fox.

But the Chinese statement on this weekend's meeting only said Beijing agreed to buy more USA goods. Beijing, for example, didn't mention the 90-day deadline for talks on a deal over technology issues. Trump officials are putting pressure on Beijing to tone down its ambitions to lead in emerging industries such as artificial intelligence, a compromise for which Xi has shown no appetite.

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