INSUBCONTINENT EXCLUSIVE:
Image copyrightEPAImage caption
Xi Jinping and Donald Trump are trying to solve a trade tariff war
China
has said it is "ready to work" with the US, suggesting progress in trade talks between the two countries.It said it would be willing to work
with the US to "implement the important consensus" reached at December's G20.At the Buenos Aires summit the two countries agreed to suspend
new trade tariffs for 90 days to allow for talks.China's statement comes after President Donald Trump tweeted "big progress" was being made
in relations after a call with Chinese President Xi Jinping.In Saturday's tweet, the US president said "talks were moving along very
well".Sunday's statement from Lu Kang, the spokesperson for the country's foreign ministry, appeared to confirm President Trump's
optimism."China stands ready to work with the US to implement the important consensus reached by President Xi Jinping and President Trump in
Argentina, expand co-operation on the basis of mutual benefit, manage differences on the basis of mutual respect," Mr Lu said.Prior to the
initially planned.The White House says the tariffs are a response to China's unfair trade policies, which Mr Trump blames for helping to
create a huge trade deficit.What's the background to the trade warMr Trump campaigned for president on a pledge to make trade fairer for the
US, and repeatedly blamed China's trading practices for making American manufacturers less competitive.The US imposed tariffs on a number of
Chinese products, including consumer and industrial items such as handbags and rice.China responded in kind, and both sides - the world's
two largest economies - ended up imposing tariffs on billions of dollars of goods.Image:Has Trump kept his promisesThe US has hit $250bn of
Chinese goods with tariffs since July, and China retaliated by imposing duties on $110bn of US products.Tariffs ended up raising costs for
Analysts say this is one of a number of factors that have put pressure on markets in recent weeks.What's changed in recent weeksIn early
December, Mr Xi and Mr Trump met after the G20 summit in Buenos Aires for the first time since their trade war started.Mr Trump agreed not
to boost tariffs on Chinese goods from 10% to 25% on 1 January, and the US said China would buy a "very substantial" amount of agricultural,
industrial and energy products.The details of that deal are yet to be ironed out, however.Negotiators from both countries have been in touch
over recent weeks and face-to-face talks could take place in January.
