China warns of long road ahead for deal with U.S.

Vastavam web: China and the United States will face a long road before they can reach a deal to end their bitter trade war, with more fights ahead likely, Chinese state media said after the two countries’ presidents held ice-breaking talks in Japan. The world’s two largest economies are in the midst of a bitter trade war, which has seen them level increasingly severe tariffs on each other’s imports.

In a sign of significant progress in relations on Saturday, Chinese President Xi Jinping and U.S. President Donald Trump, on the sidelines of the G20 summit in Osaka, agreed to a ceasefire and a return to talks.

However, the official China Daily, an English-language daily often used by Beijing to put its message out to the rest of the world, warned while there was now a greater likelihood of reaching an agreement, there’s no guarantee there would be one.

“Agreement on 90 percent of the issues has proved not to be enough, and with the remaining 10 percent where their fundamental differences reside, it is not going to be easy to reach a 100-percent consensus, since at this point, they remain widely apart even on the conceptual level.”

Trump also offered an olive branch to Xi on Huawei Technologies Co [HWT.UL], the world’s biggest telecom network equipment maker. The Trump administration has said the Chinese firm poses a national security risk given its close ties to China’s government, and has lobbied U.S. allies to keep Huawei out of next-generation 5G telecommunications infrastructure.

Though problems between the two countries remain, China is confident as long as they both follow the consensus reached by their leaders they can resolve their problems on the basis of mutual respect, Wang said in the statement released late Saturday. Trump’s comments on Huawei, made at a more than hour-long news conference in Osaka following his sit-down with Xi, generated only a cautious welcome from China. The word “Huawei” was not mentioned at all in the top diplomat’s appraisal of G20.