WNPR

China

Updated at 1:30 p.m. ET

China is retaliating against the Trump administration's tariffs on Chinese goods, imposing charges of its own Monday on a list of 128 imports from the United States, including agricultural products ranging from fruit to wine to frozen pork.

China's tariffs add fuel to what many economists fear is a burgeoning trade war between the two economic superpowers.

Updated at 4:05 p.m. ET

U.S. stock indexes surged about 3 percent Monday after fears eased of a trade war with China. The two big trading partners reportedly are negotiating to improve U.S. access to Chinese markets.

The Wall Street Journal reported that the U.S. and China have "quietly started negotiating" and that U.S. Treasury Secretary Steven Mnuchin is considering a trip to Beijing for talks.

The Pentagon unveiled its National Defense Strategy, a document that focuses on the "eroding" U.S. military advantage with regard to Russia and China, and will likely influence future spending on weapons systems and other military hardware.

"The department needs to focus on Russia and China," said Deputy Assistant Secretary of Defense for Strategy and Force Development Elbridge Colby, during a question and answer session with reporters at the Pentagon. "The erosion of our military advantage is the problem."

A former Central Intelligence Agency officer is under arrest on charges of illegally retaining highly classified information relating to the U.S. spy network in China – including notebooks containing lists of informants and details of their operations, the Justice Department announced Tuesday.

Jerry Chun Shing Lee, 53, a naturalized U.S. citizen who now lives in Hong Kong, was taken into custody Monday night at New York's John F. Kennedy Airport.

President Trump and Chinese leader Xi Jinping say they have agreed to work together on the denuclearization of North Korea and closer cooperation on trade.

In a joint statement delivered at Beijing's Great Hall of the People with Xi, Trump praised the Chinese president as "a very special man," and earlier, he said the two enjoyed "great chemistry." The Chinese leader emphasized that while the two economic and military giants would occasionally have differences, there were opportunities to be "mutually reinforcing."