Published: Thu, January 10, 2019
Economy | By

Markets buoyed as US-China trade talks extended amid signs of progress

Markets buoyed as US-China trade talks extended amid signs of progress

American officials welcomed a "good few days" as they prepared to depart Beijing today, raising hopes that the world's two largest economies could draw a line under their acrimonious dispute and reach a deal.

USA and Chinese envoys extended trade talks into a third day Wednesday after President Donald Trump said negotiations aimed at ending a tariff war were "going very well!".

Steven Winberg, assistant secretary for fossil energy, has told reporters that discussions will be extended for another day. They say China's companies are treated unfairly in national security reviews of proposed corporate acquisitions, though nearly all deals are approved unchanged.

The talks went ahead despite tensions over the arrest of a Chinese tech executive in Canada on US charges related to possible violations of trade sanctions against Iran.

The Chinese side has suggested talks were "constructive".

The American delegation is led by a deputy USA trade representative, Jeffrey Gerrish, and includes agriculture, energy, commerce, treasury and State Department officials.

"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.

The Trump administration also wants Beijing to buy more American goods to narrow a yawning trade gap and allow foreign players better access to the Chinese market. The talks, though arduous, were conducted in a pleasant and candid atmosphere, he said.

However, people familiar with the talks told Reuters on Tuesday that the two sides were further apart on Chinese structural reforms that the Trump administration is demanding in order to stop alleged theft and forced transfer of United States technology, and on how Beijing will be held to its promises.

Mr Ross said there was a "very good chance" of reaching an agreement, although monitoring compliance would present a challenge.

China's economy was more vulnerable to the fallout from the trade war, he said, noting that Beijing exports more goods to the United States than the other way around.


If talks continue to go well, a cabinet-level meeting is likely to happen before the end of the month.

"I don't speak for them obviously", Cook said in reference to the Trump administration.

"I don't see any linkage with the trade talks", said Glaser.

America is seeking assurances that China will buy more products from the U.S.in order to reduce the trade deficit, and it wants a fairer playing field for US companies that do business inside China, NPR has reported.

U.S. Commerce Secretary Wilbur Ross, left, shakes hands with Chinese Vice Premier Liu He as they pose for photographers after their meeting at the Diaoyutai State Guesthouse in Beijing, June 3, 2018.

Global financial markets retreated late a year ago, largely over concerns about the economic impact of a protracted trade war.

"Even if a deal is cobbled together, the more strident trade hawks in the White House and Trump may not sign off", Mizuho Bank's Vishnu Varathan said in a report.

The current trade round coincided with an unannounced visit from North Korean leader Kim Jong Un, who arrived in Beijing on Tuesday for talks with Xi in Beijing ahead of a possible second meeting between Kim and Trump.

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 U.S. trade talks.

As of 8:25 pm in Beijing, neither the Chinese side nor the Americans had released a statement - a possible sign of message coordination as the USA delegation returned to Washington.

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