Trump Says `Big Progress Being Made' With China After Xi Call

U.S. President Donald Trump second right and China's President Xi Jinping second left attend their bilateral meeting at the G20 Summit in Buenos Aires Argentina. A U.S.-Chinese cease-fire on tariffs gives jitter

Associated Press President Trump met with China's President Xi Jinping second left at the G20 summit in Buenos Aires on Dec. 1

U.S. President Donald Trump takes part in a welcoming ceremony with China's President Xi Jinping at the Great Hall of the People in Beijing, China, on November 9, 2017.

Chinese leader Xi Jinping has wished a happy New Year to Russia's President Vladimir Putin and the nation, state media reported. "Big progress being made!"

The Chinese response was positive but more tempered.

When talking about China's reform and opening-up, Xi said a comprehensive and systematic overhaul of both Party and state institutions has been unveiled, adding that over 100 major reform measures were launched in the country.

China and the U.S. have been locked in a trade war for much of 2018, shaking world financial markets as the flow of hundreds of billions of dollars worth of goods between the world's two largest economies has been disrupted by tariffs. As NPR's Rob Schmitz reported, US tariffs on $200 billion worth of Chinese imports, which were scheduled to increase to 25 percent on January 1 have remained at 10 percent as a result of that temporary truce.

The US has hit $250bn of Chinese goods with tariffs since July, and China retaliated by imposing duties on $110bn of US products.

In his message to Trump, Xi said China-US relations had experienced ups and downs but made historic progress over the past four decades, state news agency Xinhua reported.

Chinese Foreign Ministry spokesman Lu Kang further stated China "stands ready to work with the U.S." on an agreement, expand co-operation in a mutually beneficial way and "manage differences on the basis of mutual respect".

The Chinese leader expressed a wish to develop trade, economic, military, law enforcement and anti-drug cooperation with the United States next year that will mark the 40th anniversary of the establishment of the bilateral relations.

Trump took to twitter on Sunday saying he had a "long and very good call" Xi and that trade deals were in progress.

Two-way investment between the two countries also soared over the period.

December was a particularly trying month for USA equities.

After a spate of tit-for-tat slapping of additional tariffs on each other's exports, both countries declared truce till March 1 next year to reach an agreement on Trump's demand that China should reduce the United States dollars 375 billion bilateral trade deficit. "This was really the year that market volatility returned with a vengeance". USA authorities put increasing pressure on their Five Eyes intelligence-sharing partners, including Canada, to ban the use of equipment by Chinese telecommunications equipment giant Huawei Technologies in their next-generation 5G wireless networks over cybersecurity concerns.

Bell Canada parent BCE Inc. and Telus Corp.

Besides worries over the hard U.S.

Unusually, it was Mr Trump who first confirmed his call with Mr Xi, not the other way around.

Ending his speech, Xi reaffirmed that China's honest commitment to safeguarding world peace and promoting common development will remain unchanged. -China trade talks, much of current angst is focused on the Federal Reserve, which faces a tricky balancing act of boosting interest rates enough to contain inflation without choking off the economic expansion.

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