December 29, 2018 / 4:29 PM / 10 months ago

Trump says 'big progress' on possible China trade deal

WASHINGTON/BEIJING (Reuters) - U.S. President Donald Trump said on Twitter that he had a “long and very good call” with Chinese President Xi Jinping and that a possible trade deal between the United States and China was progressing well.

As a partial shutdown of the U.S. government entered its eighth day, with no quick end in sight, the Republican president was in Washington, sending out tweets attacking Democrats and talking up possibly improved relations with China.

The two nations have been in a trade war for much of 2018, shaking world financial markets as the flow of hundreds of billions of dollars worth of goods between the world’s two largest economies has been disrupted by tariffs.

Trump and Xi agreed to a ceasefire in the trade war, deciding to hold off on imposing more tariffs for 90 days starting Dec. 1 while they negotiate a deal to end the dispute following months of escalating tensions.

“Just had a long and very good call with President Xi of China,” Trump wrote on Saturday. “Deal is moving along very well. If made, it will be very comprehensive, covering all subjects, areas and points of dispute. Big progress being made!”

Chinese state media also said Xi and Trump spoke on Saturday, and quoted Xi as saying that teams from both countries have been working to implement a consensus reached with Trump.

“I hope that the two teams will meet each other half way, work hard, and strive to reach an agreement that is mutually beneficial and beneficial to the world as soon as possible,” Xi said, according to the state-run Xinhua news agency.

China’s foreign ministry said on Sunday the two countries’ relationship had endured storms before, but that strong ties were important for the economies of both nations and for ensuring global stability and peace.

Ministry spokesman Lu Kang said that Sino-U.S. ties now “stand at a historic new starting point” and that the two sides should respect each other’s sovereignty, security and development interest and appropriately manage differences.

“Both sides should stick to rationally and objectively viewing the other side’s strategic intentions, strengthen strategic communication and promote strategic mutual trust to prevent strategic misjudgments,” he said in a statement.

GOVERNMENT SHUTDOWN

Having canceled his plans to travel to his estate in Florida for the holidays because of the government shutdown that started on Dec. 22, Trump tweeted, “I am in the White House waiting for the Democrats to come on over and make a deal.”

The Republican-controlled Congress was closed for the weekend and few lawmakers were in the capital.

The shutdown, affecting about one-quarter of the federal government including 800,000 or so workers, began when funding for several agencies expired.

U.S. President Donald Trump listens to questions from reporters about an impending U.S. Government shutdown as he participates in a bill signing ceremony for the “First Step Act” and the “Juvenile Justice Reform Act” in the Oval Office of the White House in Washington, U.S., December 21, 2018. REUTERS/Joshua Roberts

Congress must pass legislation to restore that funding, but has not done so due to a dispute over Trump’s demand that the bill include $5 billion in taxpayer money to help pay for a wall he wants to build along the U.S.-Mexico border.

The wall was a major 2016 campaign promise of Trump’s, who promised then that it would be paid for by Mexico, which has steadfastly refused to do so. Trump has since demanded that U.S. taxpayers pay for it at an estimated total cost of $23 billion.

He sees the wall as vital to stemming illegal immigration, while Democrats and some Republicans see it as an impractical and costly project. The standoff over Trump’s demand for funding will be a test for Congress when it returns next week.

Trump tweeted on Saturday that the deaths of two migrant children this month who had been taken into U.S. custody after trying to cross the southern border were “strictly the fault of the Democrats and their pathetic immigration policies.”

It was unclear exactly which policies Trump was referring to, but his aides have referred to U.S. laws and court rulings - including laws passed with bipartisan support - that govern the conditions under which children and families can be detained as “loopholes” that encourage illegal immigration.

On Friday, Secretary of Homeland Security Kirstjen Nielsen visited Border Patrol stations in Texas after her agency instituted expanded medical checks of migrant children following the two deaths. She is also due to visit Yuma, Arizona, the Department of Homeland Security said in a statement on Saturday.

In the interim, thousands of employees of federal agencies such as the Homeland Security, Justice, Commerce, Interior, Transportation, Agriculture and other departments were staying at home on furlough or soon to be working without pay.

For instance, members of the U.S. Coast Guard will receive their final paychecks of the year on Monday, the service said in a statement on its website on Friday after previously warning that payments would be delayed due to the shutdown.

FILE PHOTO: U.S. President Donald Trump speaks during a signing ceremony for H.R. 2, the "Agriculture Improvement Act of 2018" in Washington, U.S., December 20, 2018. REUTERS/Jim Young/File Photo

“The administration, the Department of Homeland Security [DHS], and the Coast Guard have identified a way to pay our military workforce on Dec. 31, 2018,” the service website read.

That paycheck will be their last until the government reopens.

The Federal Emergency Management Agency also said on Friday that it would resume issuing new flood insurance policies during the shutdown, reversing an earlier decision.

Reporting by Yeganeh Torbati and Katanga Johnson in Washington; additional reporting by Lusha Zhang, Ben Blanchard and Ryan Woo in Beijing and Adam Jourdan in Shanghai; Editing by Kevin Drawbaugh, Daniel Wallis, Diane Craft and Nick Macfie

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