Beijing is seeking to roll back tariffs on as much as $360bn (£280bn) of Chinese imports - including clothing, meat and electric appliances - before Xi Jinping agrees to go to the United States to sign a partial trade deal with Donald Trump.
Chinese officials confirmed they were thrashing out the shape of a first-stage trade deal with the United States, which will force Beijing to end a moratorium on purchases of some United States agricultural goods such as soya beans in exchange for Washington applying lighter tariffs on Chinese imports.
"The question right now is what the two sides have actually agreed on - the market's focus has shifted to how the U.S. may react to China's tariff remarks tonight or in coming days", Oversea-Chinese Banking Corp Ltd (華僑銀行) economist Tommy Xie (謝東明) said.
Gao said both sides agreed to remove additional tariffs imposed in phases as progress was made on the agreement.
Still, U.S. stocks spiked on Thursday amid high hopes of a partial deal.More news: Measles wipe immune system's memory of other illnesses, studies find
The announcement came amid ongoing bilateral "extensive and serious" discussions over the past two weeks between Beijing and Washington to end their trade war, and reach an agreement that would help stabilize the world economy.
Hong Kong's Hang Seng Index climbed 0.6 per cent, while contracts on the S&P 500, Dow Jones Industrial Average and Nasdaq all jumped.
Last month, the US leader met with Chinese Vice Premier Liu He, leading the two countries to agree to a "phase one" deal that includes China's purchase of $40 billion to $50 billion worth of American agricultural products, as well as guidelines on intellectual property.
Chinese President Xi Jinping announced earlier on November 2 that his country would boost imports while decreasing tariffs on goods coming into the country. Switzerland and Sweden also emerged as candidates.
U.S. Commerce Secretary Wilbur Ross said this week any "Phase 1" agreement would be general and cover trade in specific areas such as soybeans and liquefied natural gas.More news: Galaxy S11’s "Hubble" camera will have "Space Zoom"
The president went as far as inviting Xi to travel to the other side of the Pacific, according to National Security Adviser Robert O'Brien.
The Chinese leadership may be mindful of Trump meeting with North Korean leader Kim Jong Un in Vietnam this February, only to part ways without signing an anticipated nuclear agreement. Chinese negotiators want Trump to scrap tariffs on about $110bn of goods that were imposed in September and lower the 25% tariff rate on about $250bn of products that began previous year.
Trump is calling for $50 billion in annual imports within two years. Beijing, which has described such a scale as "unrealistic", has apparently proposed yearly imports of around $20 billion, a level seen prior to the trade war.
Although negotiations on foreign exchange and financial services are almost complete, according to a senior White House official, there is still no resolution on intellectual property rights.
Upon the news of the tariff removal, USA stocks again recorded an all-time high. The date serves as a provisional cutoff for whether a Trump-Xi summit will materialize, or whether negotiations will stall once again.More news: Shantay you stay! Ru Paul’s Drag Race UK confirmed for second series
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