5 things to know about US-Chinese trade negotiations

Adjust Comment Print

"We have firm confidence in the strong long-term fundamentals of the Chinese economy".

The talks, the first of their kind since the two countries' leaders brokered a temporary truce to the trade war at the G20 summit in December, were initially scheduled to take place over two days, with discussions continuing late into the night on Tuesday. They are hoping, at the very least, that the trade war initiated by President Trump does not escalate, that both sides step back from the brink.

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.

The American delegation is led by a deputy USA trade representative, Jeffrey D. Gerrish, and includes agriculture, energy, commerce, treasury and State Department officials. China responded by imposing penalties on $110 billion of American goods, slowing customs clearance for USA companies and suspending issuing licenses in finance and other businesses.

US stocks and European equities jumped as investors awaited developments on trade talks between the world's largest economies.

More news: Burton Albion respond after upcoming opponents Man City thrash Rotherham 7-0

U.S. Undersecretary for Trade and Foreign Agricultural Affairs Ted McKinney, center, who is part of U.S. trade delegation leaves from a hotel for a second day of meetings with Chinese officials in Beijing, China, Tuesday, Jan. 8, 2019.

Chinese foreign ministry spokesman Lu Kang said Kim's visit and the trade talks were "two separate matters".

Even so, Lu said, "China's development has ample tenacity and huge potential".

As the talks began Monday at the Chinese Commerce Ministry, Beijing complained about a USA warship in what it said were Chinese waters, but it was unclear whether that would disrupt the proceedings.

One Chinese official reportedly described the negotiations as "constructive". The move prompted China to increase tariffs on United States dollars 110 billion of U.S. goods.

More news: Woman dies after becoming stuck inside clothing bin, police say

Hundreds of billions in levies. Economists expect American orders from China to slump this year, at a time when global consumer demand is weakening.

Ross said immediate trade issues would be the easiest to tackle, while enforcement issues and structural reforms, such as intellectual property rights and market access, would be more challenging.

"It is imperative for the two sides to create enabling environment for the talks at this time", he said.

US and Chinese negotiators meeting this week in Beijing have agreed to extend trade talks until Wednesday, according to a spokesperson for the office of the US Trade Representative. Economists say that is too little time to resolve a laundry list of irritants in trade relations.

The talks are occurring as Chinese growth - 6.5 percent in the July-to-September period - fell to its lowest point in a decade.

More news: India's Move to Legitimise Migrants From Neighbouring Countries Sparks Protests

China and the United States have in the past repeatedly traded barbs over what Washington says is Beijing's militarization of the South China Sea by building military installations on artificial islands and reefs. They complain China's companies are treated unfairly in national security reviews of proposed corporate acquisitions, though nearly all deals are approved unchanged.