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China confident of agreeing United States trade deal despite Trump's combative stance

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DEVELOPING: US-China trade uncertainty fuels market plunge

"Let the negotiations begin", Trump wrote on Tuesday.

Trump continues to ratchet up pressure on China, saying there would be a "REAL DEAL with China, or no deal at all".

Global investors, who had feared for months that a protracted trade war could hurt economic growth, seemed to cheer the cease-fire on Monday, but United States markets slid back on Tuesday as it became clear that there were few concrete commitments that came out of the discussions so far. 'Financial markets are increasingly showing signs of fear of a recession'. "But if not remember, I am a Tariff Man", the commander-in-chief wrote about the agreement.

The president also seemed less focused than he has been in the past on the US trade deficit with China - widely seen by most economists as a red herring in the trade relationship - and more focused on, as he tweeted, leveling the playing field between USA and China firms.

The wide rout was partly fueled by the arrest of a key executive of telecom giant Huawei Technologies, whose apprehension in Canada could threaten the recent truce in the trade war between the US and China.

White House aides have struggled to explain the details of what the two countries actually agreed on.

"They don't want to look like they've gone across the Pacific offering concessions to placate Trump, and then a few weeks later escalation resumes", he said.

Trump on Wednesday touted Beijing's agreement to designate Fentanyl as a Controlled Substance.

His appointment of Lighthizer to lead the talks instead of Treasury Secretary Mnuchin puts one of the administration's toughest China critics in charge. Past year over 77,000 people died from Fentanyl.

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The change in tone and the increased confusion over what was achieved at the meeting contributed to a sharp decline in the U.S. stock market, which plunged on Tuesday, driven lower by trade worries and fears for future United States economic growth.

'Maybe that's the fault of us not communicating, ' Peter Navarro told Fox News in an appearance on Special Report.

That includes more purchases of US farm products, which Trump - seemingly trying to remind Xi - has said will begin "immediately". Not only are there not going to be additional tariffs at the beginning of 2019, but China has agreed to purchase a substantial amount of US products from a variety of industries in order to equalize the trade imbalance. And it comes just days after a 90-day truce in the U.S.

Yet many economists raised doubts that very much could be achieved within three months.

They said they would hold off on imposing additional tariffs for 90 days starting on December 1 while they sought a solution to their trade disputes.

It's by March 1 that the White House has set as the deadline for the Chinese to act.

Trump, meanwhile, last week signaled he is still itching to open up a third front in his global trade war, urging Congress to support what could be up to 25 percent tariffs on vehicles imported from other trade partners, such as Germany. In September, Trump threatened to go all-in with tariffs on the remaining Chinese products "on short notice if I want" - a step that could have meant higher prices on popular imports such as Apple smartphones and Nike shoes.

The Ministry of Commerce said Thursday China will immediately start implementing agreements on agricultural products, energy and cars that were reached at the weekend summit between Chinese and USA leaders over their ongoing trade dispute.

The White House has said China agreed to purchase a "very substantial" amount of agricultural, energy, industrial and other products to reduce the yawning trade gap.

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