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China praises positive steps in U.S. trade spat, says didn't give in

BEIJING - Chinese state media on Monday praised a significant dialing back of trade tensions with Washington, saying Beijing had stood its ground and that the two countries had huge potential for win-win business cooperation.

The US trade war with China is "on hold" after the world's largest economies agreed to drop their tariff threats while they work on a wider trade agreement, US Treasury Secretary Steven Mnuchin said on Sunday.

The previous day, Beijing and Washington said they would keep talking about measures under which China would import more energy and agricultural commodities from the United States to narrow the $335 billion annual US goods and services trade deficit with China.

In an editorial, the official China Daily said everyone could heave a sigh of relief at the ratcheting down of the rhetoric, and cited China's chief negotiator, Vice Premier Liu He, as saying the talks had proved to be "positive, pragmatic, constructive and productive."

"Despite all the pressure, China didn't 'fold,' as US President Donald Trump observed. Instead, it stood firm and continually expressed its willingness to talk," the English-language newspaper wrote.

"That the US finally shared this willingness, means the two sides have successfully averted the head-on confrontation that at one point seemed inevitable," it said.

During an initial round of talks this month in Beijing, Washington demanded that China reduce its trade surplus by $200 billion. No dollar figure was cited in the countries' joint statement on Saturday.

The ruling Communist Party's People's Daily said that in the energy and agriculture sectors the two countries had obvious synergies, with the United States having the capacity to satisfy the massive Chinese market.

"The ballast stone of Sino-US ties are an equal and mutually beneficial trade and business relationship. Its essence is win-win cooperation," it said.