China Blinks as Asian Markets Tank, Seeks 'Calm' End to Trade War

Tuesday, 27 Aug, 2019

Both the US and China on Friday escalated the more than year-long trade war between the world's two largest economic powers.

"China called last night our top trade people and said, 'Let's get back to the table, '" he said. -China trade war, welcomed news of progress in the U.S. -Japan trade talks.

Trump seemed to express regret for his aggressive trade policies toward China on Sunday, but the White House quickly backpedaled away from those sentiments. Oil had rallied by more than 10% from a low in early August, as relations between the U.S. and China appeared to be improving, before it started falling last Wednesday. The sooner the Trump administration understands this, the better it would be. "So I doubt whether they're going to take another step", he said on CBS' Face the Nation program.

Wall Street is cheering President Trump's statements that the US and China are going back to the table for another round of trade talks, days after both sides escalated their tariff fight.

"Anything is possible. I can say we are having very meaningful talks, much more meaningful I would say than any time frankly". Mnuchin said when the USA and China were close to a trade deal, the President was happy, but the Chinese backed off.

"Trump has been publicly berating the Fed chair for the previous year but has really stepped up his attacks in recent months as the economy has weakened, recession warnings have started flashing red and the need for someone else to blame has intensified", Craig Erlam, an analyst with OANDA, wrote in a note to investors Friday.

President Donald Trump doubled down Sunday on his hard line against China after sowing confusion with statements that he might be willing to soften a trade war G7 partners fear threatens the world economy.

White House economic adviser Larry Kudlow told CBS on August 25 that Trump "didn't quite hear the question".

On Saturday, French President Emmanuel Macron called the trade tensions "bad for everyone". And Trump rejected the assertion by some allies that the invitation to Zarif was somehow an insult. The Iranian government had said it would not meet with any Americans during the eight-hour visit to France.

But in the game of chicken that is the US-China standoff, a battle between the world's two largest economies, the White House made clear it won't blink. "They're under a lot of financial stress".

'The fact that we had the US-China dispute escalating in recent days has not been helpful.

Kudlow claimed the announcement of a trade deal with China was forthcoming and said the simultaneously closing a separate deal, which would encompass Mexico and Canada as well. China denies the United States allegations.

The move sent United States stock market stumbling. "If I want, I could declare a national emergency".

At the announcement with Abe, Trump said Japan had agreed to buy excess US corn that is burdening farmers as a result of the tariff dispute between Washington and Beijing.

On Friday, Trump announced more tariff increases and said he was ordering American companies to stop dealing with China.