Fresh round of US-China trade war talks starts in Beijing

Fresh round of US-China trade war talks starts in Beijing

Fresh round of US-China trade war talks starts in Beijing

"Talks are underway. The two sides have expressed their willingness to hold constructive talks and to work together to resolve the disputes following the consensus reached between the leaders of the two countries", Chinese Foreign Ministry spokesperson Lu Kang said in a press briefing.

"I think that gives them a great incentive to negotiate".

Trump administration officials were to begin two days of trade talks in China early Monday, Beijing time.

It is unclear if Beijing will yield to key US demands over trade imbalances, market access, and more protection for intellectual property. I think we will make a deal with China. The meeting marks the first face-to-face talks between the two governments since Chinese President Xi Jinping and President Donald Trump agreed to a tariff truce when they met during G-20 summit.

Washington has imposed punitive tariffs of up to 25 percent on $250 billion of Chinese goods.

The US has downplayed the damage the conflict is doing to its own industries as the impact of its tariffs feeds into higher costs for business and consumers and reduced demand from China for US products.

The talks went ahead despite tensions over the arrest of a Chinese tech executive in Canada on US charges related to possible violations of trade sanctions against Iran. There are concerns that USA 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.

Trump and Xi agreed to a 90-day postponement of additional tariff increases to take effect January 1.

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The outcome of the talks, apart from its implication for a wider regional economy, including Australia's, that is acutely sensitive to China's economic health, is critical for the outlook for the global economy and global financial markets. The talk with Trump would take place on the sidelines of the meeting, the newspaper said.

Without a resolution, punitive United States duty rates on US$200 billion in Chinese goods are due to rise to 25 per cent from 10 per cent on March 2. "We have firm confidence in the strong long-term fundamentals of the Chinese economy".

The United States has long complained about access to the vast Chinese market and Beijing's demands US companies reveal their technology advances.

The sell-off dropped Apple to fourth place in terms of United States companies by market capitalization.

The protracted trade war between the top two economies of the world is seen by many as a battle for global leadership.

In his New Year address, Xi said despite the slowdown the Chinese economy stayed within a reasonable range in 2018. In exchange, Trump agreed to put on hold a planned increase in tariffs on $200 billion (€175 billion) in imports from China.

Analysts say Washington's complaints imply far-reaching changes to Beijing's industrial policies, but Ross said there was a "very good chance" of reaching an agreement, although monitoring compliance would present a challenge.

"This trade fight couldn't have come at a worse time for China".

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