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US President Donald Trump has held out the possibility of an extension of the 90-day trade truce with China but made clear he would revert to tariffs if the two sides could not resolve their differences.
Key points
- The trade dispute covers US vehicle, agriculture and energy commodities
- US-China trade negotiations are led by Robert Lighthizer, a "tough" China critic
- The talks are also designed to rein in China's intellectual property breaches
Mr Trump said his team of trade advisers, led by China trade hawk and US trade representative Robert Lighthizer, would determine whether a "REAL deal" with China was possible.
"If it is, we will get it done," Mr Trump said in a Twitter post. "But if not remember, I am a Tariff Man."
The Republican president indicated he would not be opposed to extending the 90-day truce he and Chinese President Xi Jinping agreed to over the weekend.
"The negotiations with China have already started. Unless extended, they will end 90 days from the date of our wonderful and very warm dinner with President Xi in Argentina," Mr Trump said on Twitter.
The two leaders on Saturday agreed to the ceasefire in a trade war that has seen the flow of hundreds of billions of dollars worth of goods between the world's two largest economies disrupted by tariffs.
They said they would hold off on imposing additional tariffs for 90 days starting on December 1 while they sought a solution to their trade disputes.
Mr Trump has said China is supposed to start buying agricultural products immediately and cut its 40 per cent tariffs on US car imports.
US wants China to make structural reforms after tariff freeze
White House economic adviser Larry Kudlow said a reduction in Chinese tariffs on US cars and agricultural and energy commodities would be a "litmus test" for whether US-China trade talks were on track to succeed.
The United States also expects China to promptly address structural issues, including intellectual property theft and forced technology transfers.
"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.
Mr Trump has long accused China of unfair trade practices that hurt US citizens and the economy.
"When people or countries come in to raid the great wealth of our nation, I want them to pay for the privilege of doing so. It will always be the best way to max out our economic power," he said.
His appointment of Mr Lighthizer to lead the talks instead of Mr Mnuchin puts one of the administration's toughest China critics in charge.
China stays quiet while Xi is overseas
China's Foreign Ministry, the only government department that holds a daily briefing foreign media can attend, has repeatedly referred questions on details to the Commerce Ministry, which has yet to say anything.
The Commerce Ministry is due to hold its weekly news briefing on Thursday.
A lack of detail from the Chinese side has left investors and analysts wondering if Mr Trump's exuberance is warranted, and if details touted by the White House but left out of Chinese reporting on the agreement are in question.
One Chinese official said officials were "waiting for the leaders to return" before publicising details.
Mr Xi and his most senior officials, including the Commerce Minister and the country's two top diplomats, are in Portugal, and due back in China on Thursday.
Reuters
Topics: international-aid-and-trade, trade, world-politics, foreign-affairs, united-states, china