TRUMP PRAISES XI’S TRADE SPEECH, EASING TARIFF TENSIONS

US President Donald Trump praised Xi Jinping’s “kind words” on trade after the Chinese leader reaffirmed pledges to open his nation’s banking and manufacturing sectors — signalling an effort to defuse a burgeoning trade war.

“Very thankful for President Xi of China’s kind words on tariffs and automobile barriers,” Trump tweeted. “Also, his enlightenment on intellectual property and technology transfers. We will make great progress together!”

Xi on Tuesday pledged a “new phase of opening up” in a keynote address to the Boao Forum for Asia. While the speech offered little new policy and made no mention of Trump, Xi affirmed or expanded on proposals to increase imports, lower foreignownership limits on manufacturing and expand protection to intellectual property — all central to Trump’s trade complaints.

Talks between the world’s biggest economies broke down last week after the Trump administration demanded steps to curtail China’s support for high-technology industries, a person familiar with the situation said. The conciliatory tone of Xi’s speech helped bring risk appetite back to markets.

White House press secretary Sarah Sanders said Xi’s speech is “a very good sign of moving in the right direction,” but “we want to see concrete steps and concrete action”. BLOOMBERG

WASHINGTON: