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China and United States agree to roll back tariffs in phases

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Hong Kong fell 0.5 per cent after five days of gains while Shanghai was off 0.3 per cent while Singapore eased 0.1 per cent Seoul shed 0.2 per cent and Taipei gave up 0.5 per cent

Mr Trump and Mr Xi were due to meet at this month's gathering of Asia-Pacific leaders in Chile but that event was cancelled due to protests there.

One possible location was London, where the leaders could meet after a North Atlantic Treaty Organisation summit that Trump is due to attend from December 3-4, the official said. "It's under consideration but nothing decided", the official said.

A report by the UN Conference on Trade and Development (UNCTAD) released on Tuesday (Nov. 5) concludes that Taiwan is the biggest beneficiary of the U.S.

The U.S. and China have leveled billions of dollars of retaliatory tariffs on exports from each other for months, sowing uncertainty for many U.S. businesses.

There had been no indication whether or not Trump may agree, which raised the potential of one other breakdown in negotiations.

Revenue from tariffs on goods like electronics and apparel rose by 59 percent versus a year ago, and increased by $600 million from August, according to U.S. Census Bureau and Department of Agriculture data analyzed by Tariffs Hurt the Heartland, a bipartisan group focused on telling the stories of Americans hurt by tariffs.

By S&P 500 sector, communications services (+1.3%), financials (+1.2%), information technology (+1.1%) and energy (+1.1%) lead the market, while the typically defensive utilities (-1.6%) and real estate (-1.2%) sectors drop.

Negotiators agreed to a "phased cancellation" of tariff hikes if talks progress, said a Commerce Ministry spokesman, Gao Feng. "We will let you know when we have an announcement on a signing location".

China's embassy in Washington did not react to the new report.

Reports say Presidents Trump and Xi are considering to meet in the USA and in Europe.

The spokesman said that Chinese and American negotiating teams have reached a consensus following "extensive, constructive and serious" talks in recent weeks. "The currency could rally to 6.9 if the USA confirms the news on the lift of tariffs".

"The two parties have agreed to eliminate tariffs as they continue making progress".

A person familiar with China's negotiating position said it was pressing Washington to "remove all tariffs as soon as possible".

Those issues include US claims that China forces American companies to share intellectual property as a condition for doing business in the country, as well as allegations of Chinese industrial espionage. It will not address industrial subsidies at all.

The Chinese Communist Party is trying to "re-trade" the agreement, said Stephen Bannon, former White House adviser.

Taiwan's third-largest export to the U.S.as a result of the trade war is electrical machinery at US$287 million, while the European Union led the pack in this sector with exports of US$422 million.

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