China Says Agreed With US To Remove Tariffs As Trade Deal Progresses

United States President Donald Trump holds a letter from China's President Xi Jinping during a meeting with Chinese Vice Premier Liu He in the Oval Office at the White House

US-China summit could be delayed until December

"Negotiations are continuing and progress is being made on the text of the phase one agreement", White House spokesman Judd Deere said.

Tariff reductions in the preliminary deal, which has not yet been confirmed by the American side, could amount to a bargaining win for Beijing.

"It's still possible the US-China trade pact will not be reached, but a deal is more likely than not", the official told Reuters.

Reports that the usa has agreed to a rollback of tariffs on Chinese goods if "phase one" of the long-awaited trade deal is sealed have sent markets to a record high.

The prospect of an agreement sent stock markets soaring to all-time highs and prompted the International Monetary Fund (IMF) to say a deal easing trade tensions between the U.S. and China could persuade its officials to revise up forecasts for global growth next year.

Trump and President Xi Jinping were due to meet at this month's gathering of Asia-Pacific leaders in Chile but that event was canceled because of protests there.

Ever since the US fired the first shot in the trade war in July a year ago, the two leaders have met face-to-face only at Group of 20 gatherings. -China trade war, inadvertently recognizing Taiwan as a separate country from China while still paying lip service to Beijing.

"In the past two weeks, top negotiators have had serious and constructive discussions on resolving issues of core concern", said Ministry spokesman Gao Feng in a statement provided to Poitico.

-China trade disputes, a USA anti-tariff advocacy group said Wednesday. "It's not as though we're removing all tariffs and the economic drags dissipate, but what does dissipate significantly is the uncertainty".

Most of the recent market optimism, however, has been fuelled by the increasing chance of a mini trade deal between the USA and China. European shares and USA stock futures jumped.

China and the US have agreed to roll back tariffs on each other's goods in phases as they work toward a deal between the two sides, a Ministry of Commerce spokesperson said. He gave no indication whether rolling back tariffs was a possibility at this stage.

Chinese negotiators want Trump to scrap tariffs on about $110bn of goods that were imposed in September and lower the 25% tariff rate on about $250bn of products that began a year ago.

In terms of the content of the deal, differences still remain on the scale of American farm products China will purchase.

News reports said Beijing wants 15% tariffs imposed in September on $125 billion of Chinese imports removed before it will make a formal commitment.

The reports also suggested that the planned summit would be delayed until next month.

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