China says trade talks with U.S. end, no details released

China says trade talks with U.S. end, no details released

China says trade talks with U.S. end, no details released

The S&P 500 Index has fallen about 8% since Trump and Chinese President Xi Jinping agreed on a 90-day truce at a December 1 meeting in Argentina.

Global financial markets had surged on hopes that Washington and Beijing may soon end their dispute and avert an all-out trade war between the two biggest economies.

A US delegation, led by deputy US Trade Representative (USTR) Jeffrey Gerrish, travelled to China on Friday (4 January) to discuss the trade relationship between the two countries.

Almost halfway into the 90-day truce, there have been few concrete details on progress made so far. Following the economic summit, Vice Premier Liu He is expected to visit Washington, D.C., where he will meet with US trade negotiators led by Robert Lighthizer. Media reports, citing United States officials, have said that the talks were still underway on Wednesday.

The negotiations were initially scheduled to last two days but went on for three because both sides were "serious" and "honest", Gao Feng, spokesman at the Chinese commerce ministry, told a news conference. The USTR statement didn't say whether progress had been achieved on its main concerns.

There was little market reaction to Trump's prime-time televised address where he made his case that a U.S. -Mexico border wall is urgently needed, despite opposition from Democrats. United States officials are expected to host China's top trade negotiator, Vice Premier Liu He, in Washington later this month, a source told CNN on Monday. The issues at play have soured the wider U.S. -Chinese relations for years.

The talks were seen as a litmus test of whether a lasting deal can be reached before March 2, when the Trump administration plans to hike tariffs on $200 billion of Chinese goods from 10% to 25%.

The paper said in an editorial that the dispute harms both countries and disrupts the global trade order and supply chains.

The U.S. Trade Representative's office said officials broached those topics and discussed the need for any agreement to include "complete implementation subject to ongoing verification and effective enforcement".

Chinese exports to the US have held up despite tariff increases, partly due to exporters rushing to fill orders before more increases hit. "Their economy is slowing much more than I think public data is showing right now", Leland Miller, CEO of China Beige Book, said on Bloomberg TV on Tuesday.

"What really matters here is what enforcements will the US have when the Chinese don't follow through", Scissors said, adding that this would need to entail a threat to reimpose tariffs by a certain date.

China has also cut tariffs on USA cars, dialled back on an industrial development plan known as "Made in China 2025", and told its state refiners to buy more US oil.

Asked what he expected to come out of this week's talks in Beijing, Trump sounded a positive note.

"These issues are much more hard to solve immediately but are, frankly, much more compelling to USA companies", said Jake Parker, vice president for China operations of the U.S.

Stock markets were roiled last week after Apple (APPL) warned it will badly miss its quarterly sales forecast because of weaker growth in China amid the trade war.

News reports citing sources familiar with the negotiations overall indicate that the relatively superficial issues - such as Chinese purchases of American goods and services - are seeing some progress.

Ted McKinney, US Under Secretary of Agriculture for Trade and Foreign Agricultural Affairs, said the US delegation would return to the United States later today after a "good few days", CNBC reported. He added: "It's been a good one for us".

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