Donald Trump Talk About Progress After Phone Call On Trade, Xi Jinping

For his part, Xi Jinping told Donald Trump that China places "great importance" on improving bilateral ties and "encourages and supports further talks between the United States and the Democratic people's Republic of (North) Korea, and hopes for positive results."

 Washington:

The United States and China spoke of progress on Saturday after phone conversations between their leaders about a trade war that shook world markets.

"I have had a very long and very good conversation with Chinese President Xi," US President Donald Trump said on Twitter after a conversation with Chinese President Xi Jinping.

"The agreement is moving forward very well and if it is concluded, it will be very comprehensive and cover all topics, areas and issues." "Great progress is being made!"

For his part, Xi told Trump that China attaches "great importance" to improving bilateral relations and "encourages and supports the continuation of talks between the United States and the Democratic People's Republic of North Korea, as well as that hopes for positive results, "said the state Xinhua news agency reported.

Washington and Beijing have imposed tariffs equivalent to more than $ 300 billion on commodities totaling bilateral trade earlier this year, locking them into a conflict that has begun to weigh on profits and contribute to falling stock markets .

The leaders of the United States and China want "stable progress" in their relations, said Xi during the call, according to the Xinhua News Agency.

As investors worry about the trade war between the world's two largest economies, relations have faded since Xi and Trump entered into a 90-day trade truce in early December, while both parties strive to ease tensions by March 1st.

According to Xinhua, Xi said China and the United States were working to implement the terms of the truce.

During the call, Xi expressed hope that "the two teams can meet halfway and reach a mutually beneficial agreement for both countries and the world as soon as possible," according to Xinhua.

Relations between the world's two largest economies are "now in a vital phase," Xinhua quoted Xi as saying.

"China attaches great importance to the development of bilateral relations and appreciates the willingness of the US side to develop constructive bilateral relations and cooperation."

The trade war between the United States and China was one of the factors that weighed on the US and global markets in December, as well as concerns about slowing growth, the partial closure of the US government, the interest rate hike by the US Federal Reserve and Trump's attacks on the central bank.

Treasury Secretary Steven Mnuchin last Sunday aimed to dispel the concern of investors by announcing that he had held a teleconference with the leaders of the big banks, but market watchers strongly criticized the remarks for issuing new doubts.

Before Saturday's call, there were small signs of progress - and no new threats from Trump.

China's Customs Administration announced Friday that it had approved imports of rice from the United States, after the main grain stockist in Beijing resumed buying soybeans, and China suspended tariffs added to cars and parts made in the United States as of January 1st.

'Close Communication'

China is also targeting intellectual property theft in the country -- one of the main sticking points in the dispute with the US.

Trump initiated the trade war because of complaints over unfair Chinese trade practices -- concerns shared by the European Union, Japan and others.

Trump is seeking a massive reduction in the US trade deficit with China and deeper reforms to open the economy to foreign companies.

Trade negotiators from China and the United States are planning to meet in January for talks, Beijing said on Thursday, but stopped short of confirming the exact date or location.

"The Chinese and US economic and trade teams have always maintained close communication," commerce ministry spokesman Gao Feng said at a regular briefing.

Deputy US Trade Representative Jeffrey Gerrish will lead the US team for talks during the week of January 7, Bloomberg reported, citing two people familiar with the matter.

These would be the first face-to-face talks since the truce was agreed by both nation's leaders on the sidelines of the G20 summit meeting in Buenos Aires.

Last week, Beijing's commerce ministry said China and the US "made new progress" on the issues of trade balance and intellectual property during a phone call between officials from the two countries.