Published: Wed, January 09, 2019
Money | By Arnold Ball

US Expresses Optimism About Trade Talks with China

US Expresses Optimism About Trade Talks with China

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.

US Commerce Secretary Wilbur Ross signalled in a CNBC interview on Monday that there was a "very good chance" of reaching an agreement.

The trade talks are the result of an agreement last month between U.S. President Donald Trump and Chinese President Xi Jinping to stop the tit-for-tat tariff conflict between the two countries for 90 days starting on New Year's Day.

The US team is led by deputy US trade representative Jeffrey Gerrish, and includes under secretaries from the US Departments of Agriculture, Commerce, Energy and Treasury, as well as senior officials from the White House.

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

China's Foreign Ministry Spokesperson, Lu Kang, addressed the encounter during a press briefing later on Monday, stating that Beijing had "lodged stern representations" with Washington. Beijing 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.

"Liu's participation in the meeting, held at the ministry's premises, signals that China is attaching high importance to the talks, even if the main participants this time are mid-level officials", Bloomberg wrote.

Optimistic investors are placing their bets on the stock market once again, boosted by the United States' and China's latest attempt to resolve their trade war.

TSA Screeners Working Without Pay During Government Shutdown Calling Out Sick
At Dallas-Fort Worth (DFW) International, the wait time was slightly longer than in NY but still within TSA standards . Other airport employees called the situation unmanageable and said frantic passengers were left crying in line.

One Chinese official reportedly described the negotiations as "constructive".

The US and its allies periodically send planes and warships through the area, which is claimed by China, to signal to Beijing their right under worldwide law to pass through the waters.

Trump has imposed 25 percent tariffs on $50 billion of Chinese good and 10 percent duties on $200 billion of imports.

"China's ability to use (North Korea) as leverage has diminished considerably since Trump opened his own channel to Kim", she said. "China's development has ample tenacity and huge potential", Lu said.

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

Liu's appearance at the talks is a "symbol of Xi's personal buy-in" in the effort to reach a deal, said Leland Miller, chief executive officer of China Beige Book, a data-analytics firm that surveys companies across the Chinese economy. Among many things, the Communist leader pledged to buy more USA agricultural and industrial products, allow increased access to Chinese markets, and abide by more cybersecurity and property theft rules.

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

The Trump administration's calculus regarding how much to stress either increased purchases of USA goods, on the one hand, or structural reforms reflects a divide within the White House.

Like this: