U.S. and China have agreed to a 90-day truce in order to negotiate a new trade deal, without the latter committing to anything. It was the first official confirmation from China that there's a 90-day window for the talks.
When asked about structural changes the United States had made as a prerequisite to any trade deal, Mnuchin said he expected some things to be implemented "on a rolling basis" in phase two.
For its part, Beijing "issued an upbeat but vague promise Wednesday to carry out a tariff cease-fire with Washington but gave no details", The New York Times pointed out, adding that China has yet to confirm Trump's notion that Beijing would cut auto tariffs and buy more USA farm products.
Few details have been made public about what the two sides will negotiate, a lack of clarity that has unsettled stock markets.
But the verbal detente was broken Wednesday as China's foreign ministry lashed out at criticism from US Secretary of State Mike Pompeo.
Furthermore, contradicting statements from United States and Chinese officials, shattered United States stock prices on 4 December.
China and the U.S. announced a truce in their trade war after the meeting between Trump and Xi Jinping on Saturday, but that quickly descended into confusion, with both sides announcing different statements on what was agreed.
Some retailers were also encouraged by the agreement, according to the National Retail Federation.
After Trump met with Chinese President Xi Jinping during a trip to Argentina for the G20 Leaders' Summit, he quickly announced that they had come to a suitable agreement that would allow them to halt temporarily the escalating trade war that had resulted in tit-for-tat tariffs on imported goods. But they plunged Tuesday after Trump called himself "Tariff Man" on Twitter and renewed threats of penalty duties.More news: Mobile phone network down across the Isle of Wight
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But global markets have been nervous about the prospects of a Sino-U.S. trade dispute spilling over to growing rivalry between both sides in areas such as technology, and many economists have remained cautious about being too optimistic on a temporary truce.
In London, the FTSE 100 was on course to open around 1% lower according to financial spreadbetters despite help for its strong contingent of dollar-earning companies from a weaker pound.
As a gesture of goodwill, Trump told Xi during their meeting he would hold off on raising tariffs from 10 to 25 percent on $200 billion worth of Chinese goods that would have taken effect on January 1.
In a Twitter thread, Trump said that negotiations would end 90 days from the date of his "wonderful and very warm dinner with President Xi in Argentina".
China's government said Thursday it will promptly carry out a tariff cease-fire with Washington and is confident they can reach a trade agreement, suggesting Beijing wants to avoid disruptions due to the arrest of a tech executive. -China trade war was agreed at the G-20 summit.
In addition, according to The Washington Post, Trump's enthusiasm backfired on him following the meeting with the Chinese delegation: the Chinese were both "puzzled and irritated" by the United States president's bravado, the media outlet says, referring to its sources.
Trump tweeted late Sunday that China had agreed to "reduce and remove" its 40 per cent tariff on cars imported from the US Treasury Secretary Steven Mnuchin said Monday that there was a "specific agreement" on the auto tariffs.
The two sides will also discuss intellectual property protection, technology cooperation, market access and balanced trade, and "work hard to reach a consensus", Gao said.