China's Xi promises tax cuts, other help to entrepreneurs

The Latest Trump says he'll meet China's Xi at G-20 meeting

Trump said the two countries have a chance to make a fair deal.China has been hurt over the past months and is having a "hard time" due to strong steps taken by the United States against it over trade, President Donald Trump has claimed. "We talked about many subjects, with a heavy emphasis on Trade".

"Just had a long and very good conversation with President Xi Jinping of China", Trump wrote in a tweet.

Trump imposed new tariffs on roughly half of Chinese imports this summer while Beijing fired back with tariffs on most United States products.

The G20 summit will take place from November 30 to December 1.

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"This is pre-election hype created to make the markets happy; there is no imminent deal with China", Greg Valliere, the chief global strategist at Horizon Investments, told Business Insider.

"The sound and stable growth of China-U.S. relations serves the common interests and the fundamental interests of the people of our two countries", Li said. "It's possible", said Kudlow, who worked as Reagan's budget deputy between 1981 and 1985.

"Trump's so-called directive to his staff to draft an agreement is either a hollow gesture or an ostentatious move, or both", he said.

"I think we will make a deal with China", he told journalists at the White House.

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On Wednesday, US Secretary of State Mike Pompeo said China was probably Washington's biggest long term security challenge and the United States was engaged in a "multi-pronged effort.to convince China to behave like a normal nation on commerce " and respect global law. "They are very willing to make a deal", said trump.

The direct talks were the first between the two leaders to have been reported since May. While Beijing is open to striking a deal that narrows the trade deficit, officials have resisted Trump's other demands - including an end to subsidies for strategic industries, a stop to forced technology transfer and more competition for state-owned enterprises.

Earlier this week, Trump was quoted as saying Beijing wasn't ready to do a deal and he was prepared to slap more tariffs on China if his meeting with Xi was not productive.

Lu Xiang, a specialist on United States affairs at the Chinese Academy of Social Sciences, said that Beijing had been preparing for a "worse than the worst" confrontation with the USA, and added that any further escalation would be fatal to an already highly volatile U.S. stock market. A potential breakthrough would obviously be welcome news for investors and financial markets globally, because the threat of a trade war conflict has been viewed generally as probably the largest risk to the world economy since the global financial crisis a decade ago. He backed out on a deal congressional Democrats said they struck with Trump to provide legal status to young undocumented immigrants.

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The United States has already imposed tariffs on $250 billion worth of Chinese goods, and China has responded with retaliatory duties on $110 billion worth of USA goods. "I think only they can break the logjam". So talking about ending the battle could help Trump boost the market, which the president has made a key barometer of his success.

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