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Donald Trump and Xi Jinping extend olive branch at the G20 summit's sidelines
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The United States and China have agreed to restart trade talks and Washington will not levy new tariffs on Chinese exports, China's Foreign Ministry says, raising hopes for the world's two largest economies to resolve their trade war.
In their nearly year-long dispute, the two countries have slapped tariffs on billions of dollars of each other's imports, disrupting global supply lines, roiling markets and dragging on global economic growth.
"We're right back on track and we'll see what happens," US President Donald Trump told reporters after meeting Chinese President Xi Jinping on the sidelines of a summit of leaders of the Group of 20 (G20) major economies in Japan.
In a communique at the end of the two-day meeting in Osaka, G20 leaders said global growth remained low and risks were tilted to the downside, as trade and geopolitical tensions have grown.
But the communique stopped short of denouncing protectionism — which the US under Mr Trump's leadership has fought — calling instead for a free, fair trade environment after talks some members described as difficult.
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Mr Trump said while he would not lift existing import tariffs, he would refrain from slapping new levies on an additional $US300 billion worth of Chinese goods ($427.1 billion) — which would have effectively extended tariffs to everything China exports to the US.
"We're holding back on tariffs and they're going to buy farm products," he said.
"If we make a deal, it will be a very historic event."
Mr Trump did not provide specifics on what farm products China would purchase.
The United States has alleged that China has been stealing US intellectual property for years, by forcing US companies to share trade secrets as a condition for doing business in China, while subsidising state-owned firms so they could dominate both domestic and international business.
But Mr Xi told Mr Trump he hoped the United States could treat Chinese companies fairly, a Chinese Ministry of Foreign Affairs statement confirmed.
On the issues of sovereignty and respect, Mr Xi said China must safeguard its core interests.
"China is sincere about continuing negotiations with the United States … but negotiations should be equal and show mutual respect," Mr Xi said.
At the start of Saturday's talks, the Chinese President stressed the need for dialogue rather than confrontation.
"China and the United States both benefit from cooperation and lose in confrontation," Mr Xi said.
Widening fallout from the US-China trade war has jolted markets and tested the resolve of G20 members to present a united front in averting a global recession.
A Chinese diplomat told Reuters that Washington was exerting "extreme pressure" and raising demands without leaving room for concessions.
The dispute escalated when talks collapsed in May after Washington accused Beijing of reneging on reform pledges, which prompted further retaliatory tariffs between the two countries.
The return to talks has been a welcome development for some.
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"Returning to negotiations is good news for the business community and breathes some much-needed certainty into a slowly deteriorating relationship," said Jacob Parker, a vice-president of China operations at the US-China Business Council.
"Now comes the hard work of finding consensus on the most difficult issues in the relationship,
"But with a commitment from the top we're hopeful this will put the two sides on a sustained path to resolution."
Christine Lagarde, managing director of the International Monetary Fund, warned the global economy had hit a "rough patch" due to the trade conflict, and urged G20 policymakers to reduce tariffs and other trade obstacles.
"While the resumption of trade talks between the United States and China is welcome, tariffs already implemented are holding back the global economy, and unresolved issues carry a great deal of uncertainty about the future," she said in a statement.
China has also sought the loosening of pressure on its technology giant, Huawei, which the US has listed as a security threat — preventing US companies from doing business with it.
Washington has pressured the world's governments to ban Huawei from their construction of mobile 5G networks — a move that has caused rifts among the US, UK, Canada, Australia and New Zealand, who belong to the Five Eyes intelligence network.
But Mr Trump has suggested easing US restrictions on Huawei could be a factor in a trade deal with China.
China has demanded the US drop the restrictions, and denied accusations of Huawei being a security threat.
Several G20 leaders — including Australian Prime Minister Scott Morrison — have warned that growing Sino-American trade friction was threatening global growth.
ABC/Reuters
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