US, China hold 'constructive' call on mini trade agreement

Senior Chinese and US officials again sent positive signals about their efforts to formalise the partial trade bargain announced last month, with President Donald Trump saying he may meet with Chinese counterpart Xi Jinping in the state of Iowa.

Chinese Vice- Premier Liu He spoke by telephone with US Trade Representative Robert Lighthizer and Treasury Secretary

Steven Mnuchin, a call both sides described as "constructive".

However, details remain scarce and the positive statements were almost identical to those made a week ago, even though Trump announced the partial deal on October 11. Trump had planned to sign a deal with China's leader Xi Jinping on the sidelines of the now- cancelled summit in Chile this month. He noted that negotiations are "moving along" and "our deal's going along fine with China" but stressed repeatedly that he didn't want to give more details until the agreement was finalised.

The office of the US Trade Representative said in a statement that negotiators had "made progress in a variety of areas and are in the process of resolving outstanding issues." In Beijing, China's Commerce Ministry said the two sides discussed "properly addressing their core concerns and reached consensus on principles" and "discussed arrangements for the next consultations".

Earlier, top White House economic aide Larry Kudlow hailed the steps made in the talks. "The deal is not complete but we've made enormous progress," Kudlow told reporters. He said the discussions are nearly complete on currency, financial services, dealing with removing restrictions on majority foreign ownership of companies in China, and opening markets to US agriculture exports. Other issues like protecting US intellectual property and stopping forced technology transfer likely will wait until "phase two", Kudlow said.

The upbeat statements

reaffirmed Washington's hopeful message on trade with Beijing after a week in which the two sides exchanged a salvo of confrontational remarks. Trump three weeks ago hailed a "very substantial phase one" accord with Beijing, which he said would cover key areas and include a commitment for a massive increase in US farm exports.

Trump suggested he could sign a long- awaited trade agreement with China in the farm state of Iowa, which has been hard hit by tariffs in a nearly 16- month trade war between largest economies.

"We're looking at a different couple of locations. It could even be in Iowa," he told reporters at the White House. "We're discussing locations, but I like to get deals done first."

He said Iowa would be a good location.

"We're thinking about Iowa, you know why, because it would be the largest order in history for farmers. So to me, Iowa makes sense. I love Iowa. It's a possibility," Trump said.

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Trump said he would prefer to sign the agreement in the United States.

Xi, on the other hand, is no stranger to the farm state.

He first visited Iowa in 1985, when he was leading a government agricultural research delegation. At the time he met with first- time governor Terry Branstad, who is now Trump's envoy to Beijing. When he was vice- president in 2012, Xi returned to the eastern Iowa town of Muscatine to meet his host family from the 1985 trip.