China's President Xi expresses optimism on trade talks, announces next steps

Talks US trade rep Robert Lighthizer has met Chinese counterparts

Talks US trade rep Robert Lighthizer has met Chinese counterparts

US President Donald Trump and Chinese President Xi Jinping (R) meet on the sidelines of the G20 Summit in Hamburg, Germany, July 8, 2017.

Both China and us have imposed duties worth billions of dollars on goods imported from one another.

The fight reflects growing frustration among Beijing's trading partners over official plans to subsidize and promote fledgling Chinese technology industries.

"There are still obstacles to be overcome, and no one should underestimate how daunting a task the two sides face trying to resolve all the differences that have long existed between them in one clean sweep", the official English-language China Daily said in an editorial.

Trump also has said he expects to meet with Xi "at some point" to clinch a trade deal. They're showing us tremendous respect'.

Beijing and Washington have already imposed duties on more than Dollars 360 billion in two-way trade, weighing on their manufacturing sectors and shaking global financial markets.

Talks between USA and Chinese representatives in Beijing are believed to be progressing well as the two countries try to hammer out a last minute deal to end the tit-for-tat tariff battle.

"When the time is right, the hope would be that the personal chemistry that exists (between Trump and Xi) will pay dividends", said Erin Ennis, senior vice president at the U.S.

Following his meeting with the USA delegation, China's President Xi Jinping offered no details saying only that China and the United States are "inseparable" and "co-operation is the best choice".

The underlying USA objectives are revealed not only in its positions during the trade talks but in its actions.

That said, a willingness to continue talking as soon as next week, does suggest some reason for hope.

In talks this week, the countries focused on technology, intellectual property rights, agriculture, services, non-tariff barriers and currency, and potential Chinese purchases of US goods and services, according to the White House.

USA tariffs on $200 billion worth of imports from China are scheduled to rise to 25 % from 10 % if the two sides don't reach a deal by the deadline, increasing pressure and costs in sectors from consumer electronics to agriculture.

China's vice premier and chief trade negotiator, Liu He, and Lighthizer are to lead the next round of talks this coming week in Washington.

But multiple reports indicated little progress was made in the Chinese capital on thorny issues such as USA demands that Beijing stop requiring forced technology transfers by foreign firms as a condition of doing business in its market, and reduce subsidies that favour domestic companies.

US stocks declined on news of scant progress, with the S&P 500 Index down 0.3 percent at 10:47 a.m.in NY.

Trade talks between the U.S. and China have broken up without a deal, with the USA warning that "very hard issues" remain unresolved. He said his own view is China "already has offered too much", given its relatively low state of development.

Officials expressed optimism but gave no details of this week's negotiations, which had been the last scheduled before a planned American tariff hike on $200 billion of Chinese imports on March 2.

The gradual recovery of global economy, China's opening-up efforts and pro-trade policies, accelerating industrial upgrading and improving corporate vitality will lend strong steam to the country's trade growth this year, Chu Shijia, head of the comprehensive department of the Ministry of Commerce, told a conference Tuesday.

China's exports last month unexpectedly returned to growth after a shock decline in December past year, while imports fell much less than expected, but analysts said that the strength was likely due to seasonal factors and predicted renewed trade weakness ahead.

In addition, the Trump administration reportedly has under consideration an executive order that would ban Chinese telecom companies from operating in the U.S. on "national security" grounds.

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