China-US trade talks end on positive note

China promises to purchase ‘substantial amount’ of US goods as three-day trade talks end

China promises to purchase ‘substantial amount’ of US goods as three-day trade talks end

Given the results of the talks, reports of optimism on both sides suggest that Washington may be willing to settle for a deal that mostly involves addressing the trade deficit by increasing USA exports to China.

Notably, in Thursday's press conference in Beijing, Gao avoided verifying some of the specifics of the USTR press release, including the promise for China to purchase increased amounts of USA goods as well as the specific list of issues covered.

White House press secretary Sarah Huckabee Sanders expressed optimism to Fox Business Network.

China also restarted purchases of American soybeans last month, providing relief for a crop hit by Chinese retaliatory tariffs.

Trump, a Republican, has accused China of cheating the United States on trade and stealing USA intellectual property, though he often has said he has a good personal rapport with Xi.

United States commerce secretary Wilbur Ross predicted that the U.S. and Chinaare likely to reach a trade deal, as officials from both nations met for face-to-face talks in Beijingon Monday (New York time). The Chinese government is reported to be releasing a statement on the talks tomorrow.

The benchmark S&P 500 added 0.7 per cent to 2,550 and the tech-heavy Nasdaq index jumped 1.3 per cent to 6,823 - but retreated from their intraday highs.

Chinese officials have suggested Beijing might alter its industrial plans but reject pressure to abandon what they consider a path to prosperity and global influence. He added that China and the United States would "maintain close communication" on a potential next round of talks.

Neither side has given any indicatio that its basic position has changed.

But if the countries fail to reach a deal by March 2, Trump has threatened to restart the trade war, increasing tariffs on 200 billion dollars-worth of Chinese imports from ten to twenty-five percent.

China has imposed penalties on $110 billion of American goods, slowing customs clearance for USA companies and suspending issuing licenses in finance and other businesses. Forecasters expect American orders to slump this year. "We believe the economic environment in China has been further impacted by rising trade tensions with the United States", CEO Tim Cook wrote in a letter to investors.

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

China is the largest electric vehicle market and is strongly encouraging its development.

Citing unidentified Chinese officials involved in the trade talks, Bloomberg reported January 9 that there were disagreements between the two delegations on structural issues, which they hope will be addressed when more senior negotiators meet for talks.

USA companies also want action on Chinese policies they complain improperly favor local companies.

People familiar with the U.S.

The U.S. and China gave no indication of next steps after wrapping up mid-level talks in Beijing meant to resolve a tariff fight that threatens to chill global growth and further roil financial markets. The delegation, led by Deputy U.S. Trade Representative Jeffrey Gerrish, extended its stay for an additional day; talks had originally been scheduled to conclude on January 8. Those include subsidies and other favors for high-tech and state-owned industry, rules on technology licensing and preferential treatment of domestic suppliers in government procurement.

"Listen, I think in the end markets are not really going to care very much about the details of any deal that's struck as long as a deal is struck and directionally looks like we are going toward deescalation rather than escalation", said Jimmy Pethokoukis, fellow at the American Enterprise Institute.

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.

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