Markets rise as Beijing and Washington avert trade war

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But numerous dangers of a possible trade fight still linger.

If China doesn't live up to the agreed framework, Mr. Ross said the US will pull the trigger on tariffs and trade sanctions, known as Section 301 of the Trade Act of 1974.

The agreement, or truce, aimed at reducing the US's annual $337bn trade deficit with China was reached after an announcement from Beijing that it would "significantly increase" purchases of American farm goods, energy and other products and services. "We have agreed to put the tariffs on hold while we try to execute the framework", he said. "On China, Barriers and Tariffs to come down for first time".

"Peter has been an important part of the team", Mnuchin said of Navarro, a longtime China critic who has been pushing internally for the United States to take a tougher approach. Trump wrote on Twitter on Monday.

Sen. Marco Rubio, a Republican from Florida, suggested China was "winning" the negotiations. "They care about one thing, and that's Made in China 2025". As long as they do that, they are unlikely to introduce any tariffs.

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Chinese state media touted the developments as a win.

After Mnuchin said on Sunday that the two sides were "putting the trade war on hold", China issued a statement overnight saying it could not guarantee that renewed trade tensions with Washington could be avoided.

Australian shares are expected to drift lower, even though Wall Street was boosted by subsiding US-China trade tensions.

The deal also focused on China's "positive position" to increase imports rather than a "negative position" of getting it to cut exports, Mei said.

That 1901 agreement has always been derided by the ruling Communist party as an example of previous Chinese leaders giving in to foreign powers.

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Some in US business groups who had been pushing for tougher measures to pressure China to ease long-standing market barriers on USA companies expressed disappointment.

China also agreed in principle to move toward a more level playing field in trade relations and to address the country's theft or forced transfer of intellectual property from American firms doing business in China.

If the Trump administration gets no further than Saturday's commitments from Beijing, "then this is a huge failure of the Trump administration", said Alden, who noted the discord between reality and the tweets that Trump posted Monday morning. "Now it's up to both of us to make sure that we can implement it". "But once the summit ends, game on". If it doesn't work, the tariffs will go into effect. President Donald Trump is threatening the tariff hike over complaints Beijing steals or pressures foreign companies to hand over technology.

China imported 5.6 billion cubic feet per day past year, making it the world's largest buyer after Japan. "It was a major campaign promise of his".

The biggest immediate beneficiary appeared to be China, which won a reprieve from threatened tariffs on $50-billion of its exports to the United States as well as a lifeline for ZTE Corp, China's second biggest telecom equipment maker whose existence had been threatened by USA sanctions. He confirmed that the United States, Mexico and Canada remain "far apart" after nine months of talks, having missed a deadline set by House Speaker Paul Ryan, R-Wis., last week to reach a deal on which lawmakers could vote this year. Real structural change is necessary.

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