Very close to a big deal with China

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The U.S. and China have reportedly reached an agreement on the terms of a phase one trade deal.

Oil prices rose after President Donald Trump said Washington was "very close" to a deal.

In return, Beijing would buy more USA farm products, increase Americans companies' access to the Chinese market and tighten protection for intellectual property rights. She says it is in the interests of the worldwide community for the two sides to come to an agreement.

The U.S. has added a 25 per cent duty on about US$250 billion of Chinese products and a 15 per cent levy on another US$110 billion of its imports over the course of a roughly 20-month trade war. Officials in Beijing instead highlighted how far apart the two sides still are.

A phase-one pact is expected to be built largely around a significant increase in Chinese agricultural purchases in exchange for the USA delaying a new round of tariffs scheduled to take effect December 15 and a reduction in existing levies on Chinese goods.

Speculation that the world's two biggest economies could be close to reaching an interim "Phase 1" trade agreement spurred investors on Thursday to move money into technology, industrial and other stock sectors that tend to do well when the economy is growing.

Chinese officials said Friday that the a Phase One agreement has been reached with the US on trade that includes a phased rollback of tariffs.

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A closed-door meeting at the White House is expected Thursday to discuss how Trump will proceed before the new tariffs take effect Sunday, Bloomberg reported.

China also said it will reapply on December 15 an additional 25 percent tariff on US -made vehicles and 5 percent tariffs on auto parts that had been suspended at the beginning of 2019.

Since July 2018, the Trump administration has imposed import taxes on $360 billion in Chinese products. "They want it, and so do we!" he wrote. "This deal has the potential to be far bigger and more lucrative than any deal that could be made with the E.U". It is unclear exactly how the agreement between Washington and Beijing differs from a partial deal the president announced in October.

Adding to the mistrust among historical allies like the European Union is the US administration's move to hobble the World Trade Organization's dispute resolution process by blocking the appointment of new judges to its appellate body.

Beijing has said it would retaliate if the United States escalates the trade dispute.

The remarks came after a day of silence from Beijing, following United States media reports that an agreement "in principle" had been reached that would see the U.S. roll back some of the tariffs on $360bn of Chinese goods in exchange for Chinese commitments to buy USA agricultural products and other concessions.

China felt no goodwill either when the USA attacked the country in issues related to Hong Kong, Taiwan, Xinjiang and Tibet, she added.

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