Trump Has Not Sought Draft China Trade Plan

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Team Trump on Friday threw cold water on reports that the administration was close to cutting a trade deal with China.

Tensions have increased in recent months with USA officials accusing China of meddling in the U.S. midterm elections, conducting cyber espionage and military aggression.

WASHINGTON, Nov 2 ― A senior Trump administration official today dismissed as untrue a media report that US President Donald Trump was readying a possible trade deal with China, a CNBC reporter said in a post on Twitter. -China Business Council in Beijing, said there were plenty of challenges that would require significant negotiations in advance of a meeting between Trump and Xi to ensure success.

Trump said the two countries have a chance to make a fair deal. Suddenly, talks of 7.00 has nearly all but evaporated and the surge higher in the yuan here will continue to give added backing to gains seen in the aussie and the kiwi ahead of the USA jobs report later.

It was unclear if Trump was easing up on USA demands that China has resisted.

Earlier Friday, the Chinese foreign ministry said Trump and Xi had an "extremely positive" phone conversation Thursday.

On Thursday Chinese Premier Li Keqiang also told a group of visiting US politicians that China and the United States could overcome their differences and get relations back on track if they worked together in a spirit of mutual respect. "We have the capability and the wisdom to overcome barriers and push China-U.S. relations back to a normal track - this isn't just beneficial for both countries, but also the world".

Xi also said he and Trump expressed hopes to expand bilateral trade cooperation, Xi was quoted as saying on CCTV state television. -China trade talks can not resume until Beijing outlines specific actions it would take to meet USA demands for sweeping changes to policies on technology transfers, industrial subsidies and market access.

The two countries already have imposed tariffs on hundreds of billions of dollars of each other's goods and Trump has threatened to slap tariffs on the remainder of China's $US500 billion-plus ($A690b) exports to the United States if the disputes can not be resolved.

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.

Trump said that in early October China wanted to come in and make a deal, but he told them they weren't ready. "But the tariffs already imposed will not go away", Tu said. He gave no indication whether they made progress on settling an escalating tariff war over Beijing's technology policy.

Despite the positive message from Beijing, analysts were more pragmatic about what could be achieved by the leaders' meeting given the two sides' huge differences on strategic and ideological issues, as well as the growing hostility towards China in the United States. In response, Beijing said it would impose taxes on 5,207 United States imports worth about $60 billion.