Companies have welcomed a U.S. In return, the United States will defer a tariff hike which was scheduled for October 15 on roughly $250 billion in Chinese imports.
Negotiators are drafting a truce in which China will buy $40-$50 billion in USA farm products in exchange for tariff relief.
"The idea is to make investors more confident so they're willing to invest", he said.
He acknowledged the agreement could fall apart during that period, though he expressed confidence that it would not.
The tariffs on $250 billion in Chinese imports was set to rise Tuesday from 25% to 30%. Both leaders will meet at an Asian-Pacific leaders summit in mid-November. -China Business Council, an industry group.
That would be a stunning feat, more than doubling from the prior level of less than US$20 billion in 2017.
"I'm unsure that calling what was announced by President Trump an agreement is justified", said Scott Kennedy, a China trade expert at the Center for Strategic and International Studies in Washington.
He also said that both sides were very close to finalizing enforcement provisions and "a workable dispute settlement mechanism". Those include US pressure on Beijing to roll back plans for government-led creation of global competitors in robotics, electric cars and other technologies.
Details are still emerging, but one person familiar with the agreement said it's likely to include some USA tariffs relief. Still, he called Friday's announcement a "ray of hope".
Discussions from the opening day of round 13 of negotiations are reported to have revolved around additional U.S. agricultural purchases by China, an understanding on currency issues, intellectual property and market access.More news: Rebekah Vardy threatens Coleen Rooney: 'I'll see you in court'
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The British pound jumped against the dollar, recording its biggest two-day gain since December 2008, while shares of United Kingdom banks and homebuilders advanced as investors grew more optimistic about the U.K.'s divorce deal with the European Union.
Friday's announcement also made no mention of commitments by Beijing in sensitive areas including subsidies to industry and cyber security, or the status of telecom equipment giant Huawei, which faces damaging USA sanctions.
Trump imposed curbs in May on sales of American components and technology to Huawei Technologies Ltd., China's first global tech brand. "That's the largest order in the history of agriculture by far". "We urge trade negotiators on both sides to keep working to a full agreement that rolls back all recent tariffs so everyone sees lower costs and shoe companies can unleash innovation and create new jobs". Some companies are shifting production and supply lines out of China to avoid the USA tariffs, suggesting they expect the sanctions to stay in place for an extended period.
Lighthizer confirmed the scheduled December 15 tariffs would remain in place for now. He said it would be a "gut punch" if it goes ahead.
"We have a fundamental agreement on the key issues", Mnuchin said.
Another potential stumbling block is how to enforce any agreement.
Trump noted that it was "a tremendous deal" for American farmers. "That is certainly part of this process with the Chinese", he said.
So "good", in fact, that he has invited Liu, who is President Xi Jinping's economic envoy, to the White House on Friday.
The positive outlook was a notable shift from the start of the trade talks.