Published: Tue, January 08, 2019
Money | By Arnold Ball

United States negotiators in Beijing for trade war talks

United States negotiators in Beijing for trade war talks

A USA guided-missile destroyer sailed near the disputed Paracel Islands in the South China Sea claimed by China as U.S. officials meet their counterparts in Beijing for talks during a truce in a bitter trade war.

"I don't think Apple's earnings miss had anything to do with the present trade talks", Ross said on CNBC's "Squawk Box". Over the weekend, President Donald Trump told reporters at the White House that negotiations were going "very well". The Commerce Ministry did not give further details on who was leading Chinese negotiators or on the meeting's agenda.

Trump, who has been accusing China of indulging in unfair trade practices contributing to the huge trade deficit amounting to Dollars 375 billion, sounded positive note by saying that negotiations between the two sides were going "very well".

A US delegation arrived in Beijing on January 7 to conduct in-person trade negotiations with their Chinese counterparts.

But observers fear the time constraints and substantial range of prickly issues, including those Beijing considers core to its development, will make it hard to reach a deal.

The working level talks held at the Chinese Commerce Ministry were the first round of face-to-face discussions since both sides agreed to a 90-day truce in a trade war that has roiled worldwide markets.

China accuses the U.S. of violating worldwide law after an American navy destroyer sailed near islands claimed by Beijing in the South China Sea.

If the talks this week between the mid-level USA trade officials and their Chinese counterparts go well, senior Chinese officials are likely to head to the coming weeks to continue negotiations, Schmitz reports. There are concerns that US growth, 3.4 percent in the third quarter, could also be slowing even as the country's unemployment rate remains almost at a five-decade low.

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The US has thousands of troops in the region and, while some larger military exercises have been stopped, smaller ones continue. Secretary of State Mike Pompeo and senior North Korean officials after the North canceled it at the last minute in November.

"For example, with [resuming] buying US soybeans, it is because China has no choice but to buy". But economists say that is too little time to settle all the disputes that bedevil U.S.

U.S. and Chinese officials will begin talks on Monday aimed at resolving their damaging trade dispute.

If there is no discernible progress towards a trade deal this week - higher level follow-up talks are planned later this month - it is probable that there will be another eruption of financial markets turbulence.

"Most firms expect the trade war to escalate", the bank said.

Mr. Trump has said talks are progressing well, but it remains unclear whether Beijing will yield to US demands on open markets, technology transfer and industrial subsidies.

The negotiations are to address issues including intellectual property, agriculture and industrial purchases, two people familiar with the preparations said. Chinese data last week showed its manufacturing activity contracted for the first time in more than two years.

Trump initiated the hostilities because of complaints over unfair Chinese trade practices - concerns shared by the European Union, Japan and others.

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