Stocks plunge amid confusion over U.S.-China trade truce

Vincent Yu | AP

Vincent Yu | AP

China on Thursday expressed confidence in striking a trade deal with the United States within their 90-day ceasefire period, praising the recent meeting between U.S. President Donald Trump and Chinese President Xi Jinping as highly successful.

Trump tweeted early Wednesday that Beijing is sending "very strong signals" about a new trade framework since returning from talks over the weekend in Buenos Aires.

"Not to sound naive or anything, but I believe President Xi meant every word of what he said at our long and hopefully historic meeting", Trump said on Twitter Wednesday.

There's no official, confirmed statement of what China agreed as part of the deal, although President Donald Trump tweeted that China already had agreed to lower tariffs on American cars, and Bloomberg reported December 5 that China was preparing to restart imports of USA soybeans and liquefied natural gas.

President Donald Trump met Tuesday with executives from Germany's big automakers amid U.S.

President Donald Trump agreed Saturday to postpone USA tariff hikes in a fight over Beijing's technology policy by 90 days while the two sides negotiate.

On Wednesday, the Global Times tabloid, which is run by the Chinese Communist Party's main newspaper, said the Trump administration's statements about the deal - including the agreement that China would buy $1.2 trillion in additional USA goods - were created to highlight or even exaggerate facets of the deal that benefited the United States.

Trump, meanwhile, in a post on Twitter, said he believes Xi had been honest during their meeting last Saturday to hammer out progress over trade.

Pork producers have gone hog wild over the news that the USA and China have struck a trade truce. "China has agreed to start purchasing agricultural product from our farmers immediately".

"It will proceed as planned, step by step, not based on the rhythm of the United States". Washington, but not Beijing, has also said China will cut import tariffs on American cars.

Su told Xinhuanet that cooperation is the best option for both China and US, and both sides should jointly advance bilateral relations with coordination, cooperation and stability as the defining features.

Despite positive signals - the Wall Street Journal reports that Chinese pork prices are up 24% since May, whereas hog prices in the USA have been on the rise since mid-October in anticipation of increased demand - there are no signs that current tariffs will be removed any time soon.

"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.

'All of these help to safeguard China's legitimate interests, and are also in the interests of the United States, and even more are in line with the expectations of the global community, ' he added in a statement carried on the foreign ministry's website. "President Xi and I want this deal to happen, and it probably will", he said.

Beijing, however, has not yet confirmed what, if any, concessions it has made to the Trump administration. "China is supposed to start buying Agricultural product and more immediately".

The two sides will also discuss intellectual property protection, technology cooperation, market access and balanced trade, and "work hard to reach a consensus", Gao said.

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