China imports, exports down in September as growth cools

11 shows Chinese Vice Premier Liu He and US President Donald Trump during a meeting in the Oval Office of the White House in Washington

China reportedly wants more talks before signing Trump trade deal

The country's politically sensitive trade surplus with the United States contracted by 16.5 percent from a year earlier but stood at $25.9 billion.

Trade tensions between China and the USA have eased a little following last week's high-level trade talks, with the US shelving new tariffs against Beijing while leaving many demands to be worked out later, in return for an assurance of increased agriculture purchases by China.

China promised to increase US agricultural purchases in a partial US-China deal announced on Friday, which also includes protections for intellectual property and opening up financial markets.

United States President Donald Trump heralded a breakthrough in US-China trade negotiations and markets rallied at the end of last week over a de-escalation in tensions between the world's two biggest economies.

"The mini US-China trade deal reached on Friday doesn't alter the outlook significantly", said Martin Lynge Rasmussen, China economist at consultancy Capital Economics.

"We expect Sino-U.S. trade to be as sunny as today's weather and to develop further in a healthy way", Mr. Li said.

The world's largest economies reached a "fundamental agreement" during the talks, U.S. Treasury Secretary Steven Mnuchin insisted on Monday.

"'China has already begun agricultural purchases from our great patriot farmers & ranchers!" the president proclaimed.

While the Trump administration has touted the deal as a win for the U.S., Bartiromo and other analysts are skeptical. While tariff increases set for October 15 were delayed, the U.S.is still slated to impose levies on another $160 billion in Chinese goods in mid-December. Farmers have suffered during the trade dispute, as many struggled to sell crops with China unavailable as a buyer.

China has become increasingly wary of any statements from Trump.

Agriculture industry analysts say China is still a long way from doubling spending on U.S. farm goods, cautioning that getting there is contingent on removing substantial technical and political hurdles. "If that persists, it could help put a floor under sliding global growth".

Credit Suisse doubts this "mini-deal" will lead to the end of the USA trade war with China, saying it sees "daunting obstacles" to a full resolution. The uncertainty in trade was one of the main catalysts in the decline of market values in commodities.

The U.S. Federal Reserve has made similar forecasts, cutting 1%, or $850 billion off global GDP. Meanwhile, import growth has slowed sharply in recent quarters and now looks unusually weak relative to economic growth.

The other part of the problem, as the Associated Press reported, is that the trade deal Trump is so excited about doesn't actually exist, at least not yet.

Trump did agree to suspend a tariff hike scheduled for Tuesday on $250bn worth of imports from China.

Latest News