Lingling Wei

President Donald Trump and Chinese President Xi Jinping agreed to a cease-fire on trade that will remove some curbs on Huawei buying high-tech equipment from the US, for the moment lifting one cloud over the global economy. Under the cease-fire, the US agreed to put off additional tariffs on Chinese goods indefinitely. In response, China will start buying large amounts of American farm products, President Trump said.

Apparently, the US and China have agreed on the broad outline of a deal that would save imperiled Chinese telecom giant ZTE as the two sides move closer to resolving their trade dispute. The Trump administration would remove the ban on US companies selling components and software to ZTE, a penalty that has threatened to put the company out of business. Instead, ZTE would be forced to make big changes in management, board seats and possibly pay significant fines. Beijing has also offered to remove tariffs on billions of dollars of US farm products as part of the negotiations.