Trump Cautious About US-China Trade Deal

U.S. President Donald Trump departs from West Palm Beach Florida

Trump US China Russia Should Invest in Peace Instead of Spending on Weapons REUTERS Kevin Lamarque

"They very much want to make a deal. If they don't do it, we're going to tax the cars", the president said.

Mr Trump wants China to buy more American exports and has already won Beijing's assurances it will do so.

Liu, speaking in English, praised the direct guidance of Trump and Chinese President Xi Jinping, adding: "Hopefully, we'll get a good result".

China wants U.S tariffs removed before it can lift retaliatory tariffs on the US agricultural products and industrial goods.

Japanese shares and United States equity futures edged up alongside Treasury yields following the remarks out of both China and the U.S. Asian trading volumes were muted, with China and Hong Kong shut for a holiday.

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It remains unclear whether the United States will cancel some or all of the tariffs Mr. Trump had imposed a year ago on more than $250 billion worth of Chinese imports after concluding that Beijing was forcing American companies to surrender proprietary technology in return for being allowed to do business in the Asian country, The Washington Post said. American officials are still debating whether to use tariffs as an enforcement tool. If successful, Trump said he would invite Chinese President Xi Jinping to Washington.

Trump said if a deal can be reached, then he will hold a summit with Xi.

Gregory Daco, chief USA economist at Oxford Economics, said in a report on Thursday, "A trade deal between the two economic giants would help alleviate global growth concerns, provide a much-needed global confidence boost and lift markets", the Associated Press reported.

Despite Trump's rosy gloss on the talks on Thursday, US Trade Representative Robert Lighthizer told reporters that major issues were left to be resolved.

It's equally vague on the Chinese side.

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If a deal is reached, Trump said, he and President Xi would come together for a summit and expressed his hope to see the Chinese president, while also expressing thanks for what he said was a "beautiful letter" from Xi that had just been delivered to him. The U.S. Secret Service, which protects Trump and his family, said she was carrying four cellphones, a laptop computer, an external hard drive, thumb drive containing computer malware and two Chinese passports.

Xi also said that he is ready to keep close contact with Trump through various means, and believes that the China-US relations will make new and greater progress under their joint guidance.

The US accuses China of stealing intellectual property from American firms, forcing them to transfer technology to China. "My guess is that something in between will be in the compromise".

Vice Premier and Beijing's trade envoy Liu flew to Washington this week to continue hammering out trade negotiations. At another point, he said, "If the drugs don't stop, we'll tariff the cars. There's not a thing that's not covered", he said.

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