Trade war ‘certainly’ hurting China economy, says USA official

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Trump has already said he is ready to impose tariffs on the remaining Dollars 267 of annual Chinese exports to the United States if the two sides fail to agree on a deal within the 90-day truce period.

The two-day talks mark the first formal meeting since the pair agreed to refrain from any further tariffs for 90 days.

President Donald Trump raised hopes last week that an agreement could be found to end the months-long dispute, during which the world's top two economies have imposed import duties on more than $300 billion of each other's goods.

The USS McCampbell has carried out a "freedom of navigation" operation, sailing within 12 nautical miles of the Paracel Island chain, in the South China Sea "to challenge excessive maritime claims", Reuters reported quoting Pacific Fleet spokeswoman Rachel McMarr's statement.

China's economy is more vulnerable to the fallout in the current trade stand-off with Washington and already has been hurt by the dispute, US Commerce Secretary Wilbur Ross said today.

Asked about the timing of the operation during trade talks, Lu said resolving issues would help both countries and the world.

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"Their economy's not doing well", Mr. Trump told reporters at the White House. "I think the two sides need some kind of agreement for now", Tu said. Ahead of the midterms, Beijing attempted to sway voters in those states by running advertorials depicting the USA trade tariffs negatively in a major Iowa newspaper.

As with previous operations, the Chinese Ministry of Foreign Affairs condemned the USA operation.

The president has taken heart in China's faltering economy, repeating that it makes Beijing more likely to strike a deal.

Officials have given scant details on concessions that China might be willing to make to meet US demands, some of which would require structural reforms unpalatable for Chinese leaders.

The two sides have to meet a deadline of March 1 to reach a deal, or otherwise the USA side may raise its 10 per cent tariffs on US$200 billion in Chinese goods to 25 per cent.

China's foreign ministry on Monday confirmed that Wang would deliver a keynote speech at Davos.

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US Deputy Trade Representative Jeffrey Gerrish is to lead the delegation that is to meet with Chinese counterparts starting today.

If there is no deal by March 1, Washington has said it will go ahead with a sharp hike in tariffs on Chinese goods originally set for January 1.

Without a resolution, punitive USA duty rates on US$200 billion in Chinese goods are due to rise to 25 per cent from 10 per cent on March 2. The economy needs certainty. Before they bring Lighthizer to the table, Prasad said the U.S.is trying to see exactly what sort of offer China is willing to put on the table first.

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

But he said "what has changed is China now understands how independent they are on us".

"We have made stern complaints with the U.S.", Lu said.

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