Markets

Trump says 'I think we'll make a deal with China' on trade

Trump says 'I think we'll make a deal with China' on trade

The positive comments from the leaders impacted on markets in Asia and Europe on Friday, as investors eyed an end to the prolonged trade dispute.

Pompeo's comments were the latest slur to come out of Washington, which has accused Beijing of meddling in USA politics, conducting cyber espionage against aviation firms and hacking Trump's iPhone.

Trump had a "long and very good" telephone conversation with his Chinese counterpart on Thursday.

It is very important for the heads of state of the United Stats and China to keep frequent, direct communication, Trump said, and he and Xi should keep in touch with each other.

President Xi Jinping has promised tax cuts and other help to China's entrepreneurs in a renewed effort to revive growth in a cooling, state-dominated economy amid a mounting tariff battle with Washington.

The U.S. goods trade deficit with China hit a new record high climbing 4.3 percent to $40.2 billion in September, according to a Commerce Department report released Friday.

Xi was quoted by CCTV as saying after the call with Trump that the two leaders had hoped to expand trade cooperation.

The leaders of the world's two largest economies made the remarks after their first publicly disclosed telephone conversation in nearly six months.

One person said a sticking point in any potential deal is intellectual property theft, where the Trump administration has sought to take a hard line, and it was unclear if Trump was easing up on USA demands that China has resisted.




Just after the upbeat readouts of the Trump-Xi call, the Justice Department announced the latest in a long list of actions against what Trump administration calls China's cheating through intellectual property theft, unfair corporate subsidies and rules hampering USA corporations in China.

The Trump administration also has taken action to hit the Chinese semiconductor industry, indicting two companies accused of stealing trade secrets and banning U.S. software and equipment exports to one of them.

Trump also voiced his support for the China International Import Expo (CIIE) to be held from November 5-10 in Shanghai, which is the first of its kind in China.

Trump administration officials have said US-China trade talks can not resume until Beijing outlines specific actions it would take to meet US demands for sweeping changes to policies on technology transfers, industrial subsidies and market access.

"Those discussions are moving along nicely", Trump wrote on Twitter on Thursday.

Although U.S. -China relations have been rocky, Keqiang said he is optimistic both nations can work together in the spirit of mutual respect.

Despite the positive message from Beijing, analysts were more pragmatic about what could be achieved by the leaders' meeting given the two sides' huge differences on strategic and ideological issues, as well as the growing hostility towards China in the United States.

"We are literally the hottest country in the world, economically, and it's a great thing to see".