FTSE latest: London share prices PLUMMET amid US-China trade war fears

Kenny Grant
December 7, 2018

While neither of these two energy products were mentioned by name, it's likely that China would not only appease the U.S.by removing tariffs on U.S. LNG imports but would also help itself since Beijing needs the diversity of supply that growing U.S. shale oil and gas exports offer. Failure would raise the spectre of fresh U.S. tariff action and potential Chinese retaliation as early as March.

That's more detail than was in a Wednesday statement from China's commerce ministry that said the trade meeting with the USA was "very successful" and expressed confidence in implementing the agreement - but didn't provide any further details on the outcome.

Stocks in the U.S., Europe and Asia fell sharply after Trump declared himself "a Tariff Man" who wants "people or countries" with intentions to "raid the great wealth" of the U.S.

U.S. President Donald Trump and China's leader Xi Jinping agreed on a temporary truce to halt their long-standing trade war at the G20 summit last weekend.

On Monday, Kudlow said there was an "assumption" that China would eliminate auto tariffs, not a specific agreement.

The two countries have now agreed to a 90-day truce to work out a broader trade deal.

"We are right now taking in $billions in Tariffs".

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While it remains to be seen if Washington and Beijing can iron out their trade differences, it would be beneficial for both sides' energy sectors to at least reach some sort of deal that would allow the free trade of energy between the two super powers.

The White House has said China had committed to start buying more American products and lifting tariff and non-tariff barriers immediately, while beginning talks on structural changes with respect to forced technology transfers and intellectual property protection. The downside for China is that it also needs USA sourced LNG as its insatiable gas demand expands amid Beijing's mandate that gas make up at least 10 percent of its power generation energy mix by 2020, with further earmarks set for 2030.

America has probably already missed its best chance to sell soybeans to China, according to Cargill, one of the world's biggest agriculture commodity traders.

President Donald Trump on Wednesday scrambled to reverse a stock market plunge over fears his China trade deal won't happen, arguing Beijing was sending "very strong signals" and that he believed President Xi Jingping's promises.

It did not give further details but it crucially did not contradict the USA president's remarks that China would buy more goods from the United States to help close their trade gap and structural changes to intellectual property protection.

The U.S. president a day earlier had said the ceasefire could be extended but warned tariffs would be back on the table if the talks failed and that he would only accept a "real deal" with China.

One Chinese official said officials were "waiting for the leaders to return" before publicising details.

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