Published: Wed, January 09, 2019
Economy | By

Oil rises 2 pct on US-China trade talk optimism

Oil rises 2 pct on US-China trade talk optimism

The United States and China have bolstered market confidence that they will roll back their trade war after officials concluded three days of negotiations in sanguine spirits.

Trade talks in Beijing between the world's two biggest economies entered a third day on Wednesday, amid signs of progress on issues including purchases of US farm and energy commodities and increased USA access to China's markets.

Mr Ted McKinney, US under secretary of agriculture for trade and foreign agricultural affairs, said the US trade delegation is "wrapping up" meetings with Chinese officials and will return to the US later on Wednesday after a "good few days". "Our sense is that there's good progress on the purchase piece", said one person familiar with the talks.

"China's position in the China-US trade friction and its solutions to the friction is open, it's transparent", Lu said at a regular press briefing.

Working-level trade talks between the United States and China began Monday in Beijing with negotiators for the world's two biggest economies trying to resolve tariff disputes that have roiled world markets in recent weeks.

Brent oil extended its longest rally in a year and a half, rebounding above $60 a barrel, on hopes of a resolution in the U.S.

China - Pyongyang's sole diplomatic ally and main source of trade - said it would not use Kim's visit as a bargaining chip in the USA trade talks.(AFP) RUP.

The Wall Street Journal reported Tuesday the two sides were narrowing their differences, with Chinese officials offering greater purchases of USA goods and services and Cabinet-level follow-up meetings expected later this month.

"If it's a good outcome, it doesn't just benefit the U.S. and China, but it is also good news for the world economy", said foreign ministry spokesman Lu Kang.


Official U.S. fuel storage data from the Energy Information Administration (EIA) is due at 1800 GMT on Wednesday.

Beijing's growing commercial and political ties with its neighbours will make it harder for Washington to find "Asian countries willing to stand at its side and help contain China", the newspaper said. Over dinner in Argentina last month, Trump and Chinese president Xi Jinping agreed to a 90-day tariff truce so that negotiations could take place.

The talks were scheduled to be held in Beijing from Monday to Tuesday, but were prolonged to Wednesday. He has publicly said he's eager to make a deal that benefits both sides while also stressing that China's slowing economy and falling stock market signal the country is more desperate than the U.S. for a speedy outcome.

The US delegation to Beijing this week was led by Jeff Gerrish, deputy to US Trade Representative Robert Lighthizer who is leading the negotiations for the Trump administration.

But if the countries fail to reach a deal by March 2, Trump has threatened to restart the trade war, increasing tariffs on 200 billion dollars-worth of Chinese imports from ten to twenty-five percent.

According to CNBC, the China Daily said in an editorial Beijing's stance remains firm that the dispute harms both countries and disrupts the global trade order and supply chains.

In what is widely seen as a goodwill gesture, China on Tuesday issued long-awaited approvals for the import of five genetically modified crops, which could boost its purchases of United States grains as farmers decide which crops to plant in the spring.

For their part, Chinese officials are unhappy with USA curbs on exports of "dual use" technology with possible military applications.

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