Markets push higher as US-China trade talks wrap up

Markets push higher as US-China trade talks wrap up

US Commerce Secretary Wilbur Ross signalled in a CNBC interview on Monday that there was a "very good chance" of reaching an agreement. While both sides have expressed an interest in settling the fight, China complained of a sighting of a USA warship in what it said were Chinese waters.

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.

The more intractable issues related to structural reforms to China's industrial policies, as well as enforcement of any pledges, have been raised by officials on both sides, though there is little clarity on details.

Talks between mid-level US and Chinese officials in Beijing were extended for a third day into Wednesday, adding to optimism fueled by tweets from Trump that the two sides are making progress toward an agreement.

China and American officials began talks on Monday to potentially resolve a bruising trade war between the world's two biggest economies.

China's Foreign Ministry spokesman Lu Kang later told a daily news briefing results will be released soon.


Trump imposed tariff increases of up to 25 per cent on $250 billion U.S. of Chinese imports.

Lu also said Vice President Wang Qishan would attend the annual World Economic Forum in Davos, Switzerland in late January, but added that he had not yet heard of any arrangements for a meeting with Trump there. "Their economy is slowing much more than I think public data is showing right now", Leland Miller, chief executive officer of China Beige Book, said on Bloomberg TV Tuesday.

Trump imposed tariff increases of up to 25 percent on $250 billion of Chinese imports over complaints Beijing steals or pressures companies to hand over technology. More senior-level discussions could take place this month, with the South China Morning Post reporting that Trump and Chinese Vice President Wang Qishan may meet at the World Economic Forum in Davos, Switzerland.

The talks are occurring as Chinese growth - 6.5 percent in the July-to-September period - fell to its lowest point in a decade. "We have firm confidence in the strong long-term fundamentals of the Chinese economy".

Neither Chinese nor USA officials have given any details about the discussions. Advocates of a quick deal with Beijing, including Treasury Secretary Steven Mnuchin and White House economic adviser Larry Kudlow, have used the markets jitters as a cudgel to press their case, the people said. Among many things, the Communist leader pledged to buy more US agricultural and industrial products, allow increased access to Chinese markets, and abide by more cybersecurity and property theft rules. "We have lodged stern representations with the USA side".

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 global law to pass through the waters.

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