Washington (AFP)

US President Donald Trump said Thursday that the United States was "very close" to an agreement with China after 19 months of a fierce trade war between the world's two leading economies.

The possible announcement of a "deal" with Beijing in the coming days would fall perfectly for the billionaire Republican targeted by impeachment proceedings that should accelerate with his indictment next week.

"We are VERY close to a GREAT AGREEMENT with China," tweeted the White House tenant.

"They want it, and we want it too!", Added Mr. Trump who sends for several weeks contradictory signals on this issue, creating a certain nervousness on the markets. He recently raised the possibility of a compromise only after the November 2020 presidential election.

Beijing assured Thursday that the negotiators of the two countries maintained "close communication", without further details.

The New York Stock Exchange, which had opened in the red, suddenly flew after the presidential tweeting tone very optimistic. Around 15:30 GMT, its star index, the Dow Jones Industrial Average rose 1.01% to 28,192.21 points. The Nasdaq, with strong technological color, took up 1.00%, to 8,740.64 points, and the expanded S & P 500 index gained 1.00%, to 3,173.14 points.

For almost two years, the two countries have been playing a tug of war, resulting in the mutual imposition of additional tariffs on hundreds of billions of dollars in annual trade.

In the absence of progress, a new salvo of tariffs of 10% on some 160 billion dollars of Chinese goods must come into effect Sunday in the United States. It will target previously untouched goods such as cell phones, video game consoles or sportswear.

- Threats on Chinese growth -

Beyond a possible preliminary agreement, Washington requires structural reforms from China: that Beijing commits itself to no longer subsidize its public enterprises, opens its public markets to foreign companies and stops forcing them to grant transfers technologies.

Beijing and Washington are bitterly negotiating a preliminary agreement under which China would increase purchases of US agricultural products. In return, the United States would waive further increases in customs duties scheduled Sunday.

But this agreement, announced as imminent for several weeks by the administration of Donald Trump, is slow to materialize.

According to the Wall Street Journal, Washington has proposed to Beijing to lower up to 50% US tariffs on some $ 360 billion of imports from China.

On the other hand, the agreement would provide for the possibility for the United States to reimpose the original level of tariffs if China does not keep its promises.

This trade war, which is already penalizing export-oriented Chinese firms, is now threatening the growth of the Asian giant. It fell to 6% year-on-year in the third quarter, its lowest level in 27 years.

In addition to this trade clash, Chinese and Americans are opposed to the political crisis in Hong Kong. To the chagrin of Beijing, Donald Trump signed a law in late November supporting pro-democracy protests.

This text, which threatens to suspend the special economic status granted by Washington to the former British colony if the rights of the demonstrators are not respected, was approved by an overwhelming majority by the Congress.

© 2019 AFP