China to 'immediately' implement U.S. trade truce measures
China to 'immediately' implement U.S. trade truce measures
China to 'immediately' apply measures agreed in trade truce with US
08 December, 2018, 17:41
The United States government collected $5 billion in import tariffs during the month of October and the numbers continue to climb as the Trump administration capitalizes on additional revenue stemming from the trade war with China.
Over the first 11 months of the year, China's total trade with the USA rose by 7.2 per cent to 3.8 trillion yuan (US$557 billion), accounting for 13.7 per cent of the value of China's overall trade.
The two agreed a 90-day window starting from December 1 to try to resolve their differences, but if they can not do so then the threatened tariff increase will kick in on March 1.
On Thursday, the USA reported that its global trade deficit in October jumped to a 10-year high, and that the deficit with China surged 7.1 per cent to a record US$43.1 billion.
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China's exports to the U.S. rose 9.8 per cent for November on-year, while imports for the month fell 25 per cent on-year, the data from China's customs administration showed.
"China talks are going very well", Trump said on Twitter, without providing any details. The most recent event - which ran from mid-October to early November - saw transactions falling by 1 per cent, or US$300 million, compared with last autumn.
Analysts say the export data showed that the "front-loading" impact as firms rushed out shipments to beat planned United States tariff hikes faded, and that export growth is likely to slow further as demand cools.
The trade tensions with Washington come at a tough time for Beijing, which is battling to tackle a mountain of debt as credit tightens and infrastructure investment falls.
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But unease over the agreement has dented stocks this week with major USA indices falling more than two per cent to close the market's worst week since March and one that left both the Dow and the S&P 500 in negative territory for the year.
"We are fully confident that we can reach an agreement in the coming 90 days", commerce ministry spokesman Gao Feng said Thursday.
Furthermore, Kudlow seemed to downplay Trump's assertion following the meeting that China agreed to reduce or eliminate its tariffs on American automobiles, telling reporters that there was no "specific" agreement reached.
Stirring fears of a reignition of trade tension, the daughter of Huawei Technologies' founder, a top executive at the Chinese technology giant, was arrested in Canada on Dec 1 and faces extradition to the United States, threatening to drive a wedge between the USA and China.
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