World waits to see if Trump, Xi reach 'ceasefire'

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On the US side, these included advisers such as Kudlow and Treasury Secretary Steven Mnuchin, who are widely seen as wanting to cut a deal, but also hawkish advisers like Peter Navarro and US Trade Representative Robert Lighthizer. Saturday's meeting could be the first step toward easing trade tensions between the US and China.

The two-and-a-half-hour dinner shared by Xi Jinping and Donald Trump in Argentina, where they repeatedly emphasized their great friendship, has ended with an apparent "trade truce" but no immediate tangible results or declaration.

Duties of 10% now on most of those goods are set to rise on January 1, 2019 to a whopping 25% if a deal isn't reached.

Xi and Trump agreed to "have further exchange of visits at an appropriate time", Wang said.

But for financial markets, the weekend´s main course comes after the summit when Trump is due to sit down to dinner with Chinese President Xi Jinping in Buenos Aires.

Tensions between Washington and Beijing have increased in recent weeks ahead of the high-stakes meeting between Trump and Xi.

The press statement said Trump would not follow through his threat to raise tariffs on Chinese goods from 10% to 25% in the new year, which he had described as a reprisal for a long history of unfair Chinese trade practices. In exchange, the USA wants an immediate start to talks on Trump's biggest complaints about Chinese trade practices: intellectual property theft, non-tariff barriers and cyber theft.

"Cooperation is the best option for the two countries" in promoting world peace and prosperity, Xi reportedly told the USA president at a working dinner, according to Xinhua.

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China, in response, had been threatening to impose taxes on an additional 5,000 types of American imports worth about $60 billion.

"The two presidents agreed that the two sides can and must get bilateral relations right", Wang Yi, China's lead diplomat, told reporters in Buenos Aires. US officials for years have been pressing the Chinese government to take a tougher stance against fentanyl, and most USA supply of the drug is manufactured in China.

In its communique Saturday at the conclusion of the leaders' summit, the G-20 called for reform of the WTO to improve its functioning and said the group would review progress made by the trade organization at next year's summit in Japan.

"For the first time ever, the G-20 recognized the WTO is now falling short of meeting its objectives and that it's in need of reform", a USA official, speaking on condition of not being named, told reporters.

"The fact that we lost a president really puts a damper on it", Trump said of Saturday evening's dinner.

China also agreed to reconsider approval of US chipmaker Qualcomm's takeover of Netherlands-based rival NXP - a deal the Chinese government blocked earlier this year ― and to label the synthetic opioid fentanyl a controlled substance, a move the USA has been pushing China to do for years.

The acquisition collapsed four months ago after Chinese regulators expressed anti-trust concerns.

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