US, China trade war might end soon, Asia expert says

Trump warns there is 'a lot more' he can do to China

Trump warns there is 'a lot more' he can do to China

This appears to have had some impact on Chinese imports of American products, which dropped by 9 percent last month.

"The United States can not ignore the national security implications of China's efforts to obtain nuclear technology outside of established processes of US-China civil nuclear cooperation", Energy Secretary Rick Perry said in a statement. Analysts had expected the surplus would shrink to $19.4 billion from $27.89 billion in August.

China's trade surplus with the United States ballooned to a record $34.1 billion in September, despite a raft of USA tariffs, official data showed Friday, adding fuel to the fire of a worsening trade war.

If the U.S. -China relationship could be rebalanced, Mnuchin told Reuters their total annual trade relationship could grow to $1 trillion from $650 billion now, with $500 billion of exports from each country. That's significantly higher than the $196 billion recorded between January and September previous year.

The growing trade war prompted the International Monetary Fund on Tuesday to cut its global economic growth forecasts for 2018 and 2019.

Mnuchin's comments on China's currency come ahead of next week's scheduled release of a hotly anticipated Treasury report on currency manipulation, the first since a significant weakening of yuan began this spring as trade tensions between the world's two largest economies escalated.

"We've been very clear with China that we need to have structural changes, that we need a reciprocal trading relationship and we should be able to increase our exports by hundreds of billions of dollars", he said. But the Trump administration has already hit China with tariffs on $250 billion worth of Chinese goods imports, and has threatened duties on the remaining $267 billion.

The US Energy Department said it would make it more hard to ship nuclear technology to China, one of the few growing markets for new plants as the Asian economy tries to meet rising electricity demand through low-carbon sources.

In Bali, Indonesia, where he's attending global finance meetings, Treasury Secretary Steven Mnuchin said, "We are having discussions about a potential meeting".

Beijing's exports to the United States have at least temporarily defied forecasts they would weaken after being hit by punitive USA tariffs of up to 25 per cent. "Americans are not stupid people", Trump said in an interview on "Fox and Friends".

The yuan has fallen for weeks against the United States dollar, dropping nine percent in the past six months, which mitigates the rise in the price of Chinese goods caused by punitive U.S. tariffs. President Trump has warned there's a lot more he could do to hurt China's economy. The US dollar has strengthened against a range of currencies this year as American interest rates have risen.

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