After their hotly anticipated dinner meeting in Buenos Aires, Argentina, on the sidelines of this year's G20 leaders' summit, US President Donald Trump and his Chinese counterpart Xi Jinping found the necessary ingredients for what amounts to a temporary truce.
Trump and Xi, who were in the Argentinian capital over the last two days for a summit of G20 countries, had gone into the meeting in a bid to pull the world's top two economies from the brink of a full-fledged trade war.
The U.S. has agreed to delay by 90 days a planned increase in tariffs on $200 billion of Chinese imports so the two nations have time to iron out their trade differences - or at least attempt to do so, the White House said.
Xi, according to the White House, also told Trump he is open to approving the previously unapproved $44 billion bid by American semiconductor and telecommunication equipment manufacturer Qualcomm to purchase Dutch semiconductor maker NXP should the deal again be presented to him. They spoke for around two and a half hours and the discussion ended with Trump agreeing to hold off on raising existing tariffs on $200billion pending new talks.
"President Trump's agreement yesterday with President Xi of China is the single most important step that could be taken to stop the flow of deadly fentanyl, a synthetic opioid, from China into the United States".
The climate accords sets targets for countries to reduce carbon emissions to fight global warming and keep global temperatures under 2 C. President Donald Trump announced in June 2017 that the USA was immediately canceling its participation in the accords. Both sides have raised tariffs on billions of dollars of each country's goods.
Trump has already imposed new tariffs on about $250 billion worth of Chinese imports, roughly half of all goods China imports to the US every year.
May faces more Brexit woes after another U.K. minister quits
The prime minister was also asked repeatedly whether she had a back-up plan. "This is about what is in the national interest".
While neither side issued any immediate statements on the outcome, White House chief economist Larry Kudlow told reporters as he boarded Air Force One that the talks went "very well". "President Trump expressed his friendship and respect for Chairman Kim".
The White House said that China would subject fentanyl makers to the "maximum penalty under the law".
"The principal agreement has effectively prevented further expansion of economic friction between the two countries and has opened up new space for win-win cooperation", Chinese Foreign Minister Wang Yi said.
Many in Europe have looked to Merkel as Trump has called into question traditional trans-Atlantic ties with his announcements of trade tariffs, repeated criticism of European contributions to NATO and other issues.
According to the White House statement, the two leaders agreed to immediately begin negotiations on top USA concerns related to forced technology transfer, intellectual property and cyber theft.
Bowing to the view of Trump's administration, the G20 said that multilateral trade was "falling short of its objectives" on promoting growth and job creation.
Trump also told reporters that he thinks there could be a meeting with North Korean leader Kim Jong Un in January or February next year.
The two were expected to meet Saturday amid a period of increased tensions between China and the United States.