US official says China trade talks ‘went just fine’

What hope for markets in the US-China trade talks?

What hope for markets in the US-China trade talks?

A Chinese foreign ministry spokesman, Lu Kang, announced the talks had ended.

This week's meetings are the first face-to-face talks since Trump and Chinese president Xi Jinping agreed in December to a 90-day truce in a trade war that has roiled global financial markets.

A statement released by China's Commerce Ministry on Thursday morning said both sides carried out "wide, deep and thorough exchanges" on trade and structural issues of mutual concern. "Both sides agreed to keep in close contact", the statement said.

Trump and Xi have given their officials until March 1 to reach an accord on "structural changes" to China's economy on issues such as the forced transfer of American technology, intellectual-property rights, and non-tariff barriers.

Beijing has tried in vain to recruit France, Germany, South Korea and other governments as allies against Trump, but they have echoed USA complaints about Chinese industrial policy and market barriers.

"Removal of these tariffs must be a priority, to address the damage that has been done to American companies that depend on trade with China, and to the USA economy as a whole", the group said.

Trump boasted on Twitter on Tuesday that discussions in China were "going very well!".

Neither side has said when the two countries will meet again for further negotiations. Trump tweeted on Tuesday.

Stocks rose across Asia and Europe, and equity futures indicated an increase in the United States on Wednesday, on signs the world's two largest economies are trying to resolve their trade war. On Wednesday, White House press secretary Sarah Huckabee Sanders told the Fox Business Network, "We're optimistic".

She added that the Trump administration's complaint that China is stealing US intellectual property is "top of mind" in the negotiations with Beijing. Hong Kong's main market index closed up 2.1 percent and Tokyo rose 1.1 percent. They say China's companies are treated unfairly in national security reviews of proposed corporate acquisitions, though nearly all deals are approved unchanged. "Our sense is that there's good progress on the purchase piece", said one person familiar with the talks.

U.S. Treasury yields climbed to the highest this year, helped by improved risk appetite, but retreated following dovish commentary from Fed speakers and a strong 10-year note auction.

Still, the US statement said the negotiations dealt with the need for any deal with China to be "subject to ongoing verification and effective enforcement" - a comment that reflects USA frustration that the Chinese have failed to live up to past commitments. "We hope your company can become an in-depth participant in China's opening and a promoter of the stability of Chinese-U.S. relations".

A statement from the Office of the U.S. Trade Representative didn't characterize the tone of the talks or say what would happen next.

Trump has been demanding China to drastically reduce the Dollars 375 billion trade deficit and ensure IPR production for USA technology and services.

While the talks were mostly between mid-level officials, a photograph leaked on Monday showed they were also attended by China's Vice-Premier Liu He, the chief trade negotiator for the Chinese side.

U.S. Undersecretary for Trade and Foreign Agricultural Affairs Ted McKinney walks into a hotel after a second day of meetings with Chinese officials in Beijing, Tuesday, Jan. 8, 2019.

The Communist country has been hit with an economic slowdown and its auto sales have dropped 19 percent last month from the year before, the steepest decline in China in almost three decades.

On Monday, Chinese importers made another large purchase of U.S. soybeans, their third in the past month.

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