US President Donald Trump on Friday said his administration was "making a lot of progress" with China on trade, as Washington lifted tariffs on over 400 Chinese products.

Trump, speaking to reporters at a White House meeting with Australian Prime Minister Scott Morrison, said the United States was taking in billions of dollars from tariffs imposed on Chinese products, adding that the total would soon reach $100 billion (€90.8 billion). "I will say this: We're making a lot of progress with China," Trump said.

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The US Trade Representative's office issued three Federal Register notices on Friday to exclude a wide range of products from tariffs in response to requests from US companies, which argued that the levies would cause economic hardship.

The 437 exempted products range from printed circuit boards for computer graphics processors to dog collars, laminated wood flooring and miniature Christmas lights.

The US move comes after China announced last week that it would exclude imports of US soybeans, pork and other farm goods from additional tariffs, opening the door for significant purchases of agricultural products.

Chinese and US negotiators held two days of talks this week, focusing heavily on agriculture. They were also laying the groundwork for high-level talks in early October, which would determine whether the world's two main economic powers were working toward a solution or headed for new and higher tariffs on each other's goods.

Chinese Vice Premier Liu He is expected to hold face-to-face talks with US Trade Representative Robert Lighthizer and US Treasury Secretary Steven Mnuchin next month.

Trump wants 'complete' deal

The deepening rift in US-China trade and investment relations has triggered jitters among businesses and investors over economic growth prospects worldwide. The escalating row has also jeopardized the rule-based multilateral trading system. The Trump administration has imposed tariffs on $360 billion in Chinese imports and is preparing to tax the remaining $160 billion in goods that have so far been spared.

Trump said on Friday that he wasn't looking for piecemeal answers to the trade dispute with China. "I'm not looking for a partial deal. I'm looking for a complete deal," he said.

The US president denied that he was under pressure to resolve the massive trade dispute with China, saying he did not need a deal to happen before the 2020 presidential election.

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The Trump administration and the Chinese government remain far apart on issues that are the basis of their trade dispute, including intellectual property theft, barriers to entry for foreign companies in China and Beijing's aggressive drive to supplant US technological dominance.

Trade experts, executives and government officials in both countries have said that even if the September and October talks produce an interim deal, the US-China trade row has hardened into a political and ideological battle that runs far deeper than tariffs and could take years to resolve.

Economic data released this week by Beijing showed sluggish growth across sectors, as the world's second-largest economy slows down under pressure from the trade spat.

China's slowdown — how it's being felt across the country China's auto slump persists The world's largest automotive market last year saw its first annual sales drop in more than two decades. A 5.8% fall was recorded by the China Passenger Car Association (CPCA). The rout has continued into 2019, with sales dropping 21% in the first four months compared to last year. Beijing is due to introduce stimulus measures, including incentives for first-time and rural car buyers.

China's slowdown — how it's being felt across the country Trade war hits Chinese exports China's exports to the world sank 2.7% year-on-year in April. Exports to the US, meanwhile, dropped 13.2% amid a worsening trade conflict with Washington. Over the first four months of year, China's exports rose just 0.2% over the year. Manufacturing is expected to take a further hit as Hong Kong and Taiwan firms pull some of their production out of China to avoid US tariffs.

China's slowdown — how it's being felt across the country P2P loan industry dries up A major upheaval is underway in China's peer-to-peer (P2P) finance sector after numerous cases of fraud and negligence. Thousands of platforms have gone bust or just disappeared, leaving investors nursing heavy losses. A government crackdown on lenders means millions of Chinese consumers now have no alternative credit line.

China's slowdown — how it's being felt across the country Consumers feel the pinch Chinese consumers are cutting back on everyday spending. Clothing sales fell for the first time since 2009, while overall retail sales in April rose at their slowest pace in 15 years. With a huge stock market rout eating up retail investors' profits, the easy money that many middle- to low-income consumers have used to spend on designer and branded goods dried up.

China's slowdown — how it's being felt across the country Has the property bubble burst? There are conflicting reports about China's long-booming property market. Last year, investors of apartments started protesting outside developers' offices after the values of their flats plummeted between purchase and construction. Although some reports suggest prices are rising again, particularly in the four largest cities, authorities are keen to avoid the property market overheating.

China's slowdown — how it's being felt across the country Zombie firms faces closure A massive stimulus program in 2009 saw cheap loans offered to thousands of state-run industrial enterprises, including steel, aluminum, cement and coal producers. The investments created huge overcapacity in several sectors, and many firms relied on subsidies to stay afloat. Chinese authorities have since set a 2020 deadline to shut these "zombie firms," leaving behind an even bigger rust belt.

China's slowdown — how it's being felt across the country China's hidden joblessness Officially, unemployment remains low in China. However, most of the 280 million migrant workers from rural areas aren't counted in official statistics. Gavekal Dragonomics recently showed large state-funded industrial firms cut about 2.8 million jobs in 2018. Although the private sector has seen strong employment growth in recent years, surveys by job agencies suggest hiring is falling.

China's slowdown — how it's being felt across the country Lies, damn lies and Chinese statistics The accuracy of official Chinese goverment statistics has been questioned for years. According to the Brookings Institute, China's gross domestic product (GDP) is some 12% smaller than officially claimed. Researchers believe growth between 2008 and 2016 was on average 1.7% lower. If extrapolated to 2018, China's official 6.6% GDP figure would be more like than 5.8%. Author: Nik Martin



sri/sms (Reuters, AFP, dpa)

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