Beijing, May 20, 2018 (News Wires) - Washington and Beijing have agreed to abandon any trade war and back off from imposing tariffs on each other, Chinese state media reported on Sunday. The announcement came after high-level talks in the US capital and followed months of tensions over what President Donald Trump has blasted as an unfair commercial relationship between the two economic giants. Vice-Premier Liu He, who led Chinese negotiators in Washington said: "The two sides reached a consensus, will not fight a trade war, and will stop increasing tariffs on each other," state-run news agency Xinhua reported on Sunday. Liu called the agreement a "necessity", but added: "At the same time it must be realised that unfreezing the ice cannot be done in a day, solving the structural problems of the economic and trade relations between the two countries will take time." An earlier joint statement issued in Washington said Beijing would "significantly" increase its purchases of American goods, but offered few details. The apparent detente comes after months of increasing tensions that have set markets on edge over fears of a damaging trade war. Trump has repeatedly railed against his country's trade deficit with China, describing it as a danger to US national security and threatening to impose tariffs on billions of dollars' worth of Chinese goods. US levies on $50 billion of Chinese imports could have come into effect as early as next week. The talks in Washington were between delegations led by US Treasury Secretary Steven Mnuchin and Liu, who also met on Thursday with Trump. The sides had met earlier in Beijing. "There was a consensus on taking effective measures to substantially reduce the United States trade deficit in goods with China," the joint statement said. "To meet the growing consumption needs of the Chinese people and the need for high-quality economic development, China will significantly increase purchases of United States goods and services."
