Changing China's economic model might ease external and domestic pressures on the economy
03 November, 2018, 14:43
The Nikkei was up 2.3% in Tokyo, the Hang Seng climbed 3.35% in Hong Kong and the Shanghai Composite was up 3%.
But Bloomberg later reported that the phone call - in which Trump and Xi both expressed optimism about resolving their bitter trade disputes - prompted Trump to ask officials to begin drafting potential terms.
Kudlow added that he is not as optimistic about reaching a trade deal with Beijing as he was earlier.
"I think we'll make a deal with China, and I think it will be a very fair deal for everybody", Trump said ahead of the meeting with China in Argentina in a month's time. -China trade talks can not resume until Beijing outlines specific actions it would take to meet USA demands for sweeping changes to policies on technology transfers, industrial subsidies and market access. Trump, in a tweet after their discussion, said he planned for the two leaders to meet at the G20 summit in Argentina later this month.
On Thursday, the US charged a Chinese state-owned company with conspiring to steal trade secrets from USA chipmaker Micron Technology Inc., part of a Justice Department crackdown against China in cases of suspected economic espionage.
Trump revealed Thursday that he had spoken with Xi on several subjects, but focused on trade.
"While we are still cautious over a full resolution of recent tensions in the medium term, resumption of dialogue between Washington and Beijing would be good enough to investors for now", he told Bloomberg.
"Hence the next four weeks between the U.S. midterm elections and the G20 meeting in Argentina on 30 November will be important to see how things progress".
The US leader wants to maintain United Nations sanctions and pressure to compel Pyongyang to abandon its nuclear program, even as he prepares for a second summit with North Korean leader Kim Jong Un.
Beijing has hit back with its own duties on United States imports.
"But China very much wants to make a deal", he said.
Markets have soared on reports that the two sides are closing in on a deal that would avoid Washington piling on still more tariffs against Chinese imports.
It was unclear if Trump was easing up on USA demands that China has resisted, and reaching any accord still faces significant hurdles.
Trump administration officials have said that trade talks with China can not resume until it comes up with specific actions it is willing take to meet USA demands for sweeping changes to policies on technology transfers, industrial subsidies and market access. "As the president said, we would like to talk to them about it, but they may not be ready".
Yesterday, Trump and Xi spoke by telephone in what both sides described as an positive call.
Earlier this week, Trump said he thought there would be "a great deal" with China on trade, but warned that he had billions of dollars worth of new tariffs ready to go if a deal did not materialize.
'We're going way up, and China has been hurt over the last number of months.