China to exempt 16 categories of United States products from tariffs

The downbeat results come as US and Chinese negotiators prepare to meet in Washington in October in stop-start efforts to de-escalate the year-long trade row

US President Donald Trump welcomed an apparent olive branch from Beijing in the grinding trade war between the two nations, which came weeks before negotiations are due to resume. S&P 500 (SPX) futures were up 0.5% while Nasdaq (COMP)futures increased 0.7%.

China has imposed several rounds of tariffs on U.S. imports in the ongoing tit-for-tat dispute between the two countries.

USA president Donald Trump has agreed to a two-week delay in a planned increase in tariffs on some Chinese imports.

Trump has offered billions in aid to farms badly damaged in the trade war.

"We have agreed, as a gesture of good will, to move the increased Tariffs on 250 Billion Dollars worth of goods (25% to 30%), from October 1st to October 15th", Trump tweeted.

Among the 16 US-made products under exemptions are lubricants, fish meal and whey for animal feed and some anti-cancer drugs, the Chinese Ministry of Finance said.

China retaliated by placing tariffs on $75 billion worth of United States imports.

In a sign of the pressure being felt by the Chinese economy, the central People's Bank of China said on Friday it would cut the amount of cash lenders must keep in reserve, allowing an estimated $126 billion in additional loans to businesses.

Mr Trump has imposed or announced penalties on about 550 billion dollars (£445 billion) of Chinese products, or nearly everything the United States buys from China.

In July, the United States exempted 110 Chinese-made products from tariffs.

Chinese Vice Premier Liu He, U.S. Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin are expected to meet in early October in the U.S. capital, but key officials are tamping down expectations for a major accord.

It looks as if it could lead to China buying US agriculture products again.

Analysts say that with its duties on soybeans and USA -made cars, China is taking aim at a key political support base of Trump, mainly the factories and farms across the Midwest and South at a time of receding momentum in the world's top economy.

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