China to hold press briefing Friday, ending silence on ‘phase one’ trade deal

FAN Editor

China has been uncharacteristically quiet ever since news broke that the U.S. had agreed to a phase one trade deal in principle with the Chinese. But that will change soon on Friday.

Chinese officials are set to hold a press conference regarding the trade talks on Friday, at 10:30 pm Beijing time.

This comes as CNBC’s Eunice Yoon learned through a source that China has concerns regarding hard targets the U.S. is pushing for in terms of agricultural purchases. China has committed to buying $40 billion in agricultural products. President Donald Trump, however, wanted a number closer to $50 billion.

The source told Yoon that China is afraid those purchases could put them in conflict with other trading partners. There is also concern that Trump could eventually reimpose tariffs on Chinese goods despite a phase one deal being signed.

Stock futures were higher, but gains were capped as traders awaited a firmer confirmation from the Chinese side.

The deal agreed to in principle by the U.S., which Trump has reportedly signed off on, would delay another round of duties set to kick in on Sunday. It would also slash some existing tariffs in half.

Hu Xijin, editor-in-chief of the Global Times who seems to have inside knowledge of the trade war, said the trade talks “have moved a step forward, but how to define this step, and what real significance does it have, the answers lie in joint efforts of China and the U.S.” Hu’s Twitter account has been followed by many Wall Street traders and market participants for insight on the trade battle.

In an earlier Tweet, Hu said it’s “a delicate situation.”

In a regular press briefing Friday, China’s Foreign Ministry spokesperson Hua Chunying said the Chinese “always insist consultations must be based on the principles of equality and mutual respect, and agreements must be mutually beneficial and win-win.” She didn’t elaborate further on the limited deal.

China’s foreign minister Wang Yi, in a speech Friday at an annual symposium in Beijing on international affairs, said the U.S. and China should find a way to “coexist peacefully,” adding that there are “deep-level issues” that need to be resolved. He didn’t mention the phase one deal.

Stocks around the world rose globally on Friday amid hopes both sides will move forward with the deal. Dow Jones Industrial Average futures traded more than 100 points higher. In Europe, the Stoxx 600 index was up more than 1.5%. Japan’s Nikkei surged 2.6% while the Shanghai Composite jumped 1.8%.

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