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President Donald Trump said the US would be “fine” with China, which came just before the two sides returned to the negotiating table and the end of a fragile trade truce.
When Trump was asked about his threat to increase tariffs on Chinese goods to 100% in an interview with Fox News on Sunday, he said the levy was “not sustainable,” although “it may stand.”
He said he has a good relationship with the Chinese leader and looked forward to meeting in South Korea, where the Asia-Pacific Economic Cooperation meeting kicks off later this month. “I think we’ll be OK with China, but we have to make a fair deal. It has to be fair,” Trump said.
Treasury Secretary Scott Besant has said the US and China will hold talks in Malaysia this weekend. It came after he met with Vice Prime Minister He Lifeng on Friday, a discussion which Chinese state media described as a constructive exchange of views.
About a week ago, Trump had likely canceled his first in-person meeting with Chinese President Xi Jinping since returning to the White House, angered by the Chinese government’s pledge to impose sweeping controls on critical rare-earth elements. He also announced a 100% import surcharge on Chinese goods, effective from November 1.
This has led to the threat of a trade ceasefire which is set to expire on November 10 unless it is extended. After months of temporary stability in U.S.-China relations, tensions escalated in recent weeks after Washington stepped up some technical sanctions and proposed tariffs on Chinese ships entering U.S. ports. China responded with parallel steps and outlined strict export controls on rare earths and other critical materials.
China has tried to downplay international reaction to concerns over escalating restrictions on rare earths vital to the manufacturing of fighter planes, smartphones and even car seats.
At discussions on the sidelines of the International Monetary Fund’s annual meetings last week, Chinese representatives told their counterparts around the world that tighter export controls would not hurt normal trade flows, Bloomberg News previously reported, citing people familiar with the matter.
Officials said China was trying to create a long-term mechanism with the measure, and it was introduced as a response to US provocations such as expanding sanctions to take over subsidiaries of blacklisted companies, according to the people, who asked not to be named because the exchanges were private.
This article was generated from an automated news agency feed without any modifications to the text.
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