China Trade Talks Extend to Wednesday, Trump Sees Progress

China Trade Talks Extend to Wednesday, Trump Sees Progress

China Trade Talks Extend to Wednesday, Trump Sees Progress

The extended US-China talks to resolve the trade war between the world's two largest economies concluded here on a positive note Wednesday with a senior American official describing the dialogue as "good one" for the US.

China's Ministry of Commerce said Thursday the two sides would "maintain close contact".

As per the Chinese Commerce Ministry statement, both countries "conducted extensive, in-depth and meticulous exchanges on trade issues and structural issues of common concern, which enhanced mutual understanding and laid the foundation for resolving mutual concerns".

That throws into doubt the possibility of a trade agreement based largely on Chinese promises to raise US imports.

The two governments have announced no details, but Asian stock markets rose on news the negotiations that originally were planned for two days were extended.

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

That issue was the first stressed in the statement released Wednesday, which noted that "the officials also discussed the need for any agreement to provide for complete implementation subject to ongoing verification and effective enforcement". "The US is very clear about China's stance".

After that meeting, top USA officials said China had made an additional $1.2 trillion in trade commitments.

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%.

They include changes to China's policies on intellectual property protection, technology transfers, industrial subsidies and other non-tariff barriers to trade. This meeting was previously unscheduled, signaling the two sides could be coming together on key issues.

The restrictions on cars and soybeans were imposed as part of China's retaliation against Trump's decision to place tariffs on $50 billion worth of Chinese goods.

United States officials have long complained that China has failed to live up to trade promises, often citing Beijing's pledges to resume imports of American beef that took more than a decade to implement. Getty Images President Donald Trump speaks during a press conference with China's President Xi Jinping at the Great Hall of the People in Beijing on November 9, 2017.

Mike Bell, a global market strategist at J.P. Morgan Asset Management, said it was clear that US growth will fade in 2019, while presenting the bank's "Guide to Markets" at an event in London on Wednesday.

US SHUTDOWN: President Donald Trump's televised address Tuesday night helped soothe frazzled nerves over what steps he might take in the standoff with lawmakers over border wall funding, which has resulted in a partial government shutdown. That includes giving specific dates for making purchases, and making assurances that Beijing won't hinder US companies from gaining access to China's market. To Lighthizer - and thus the USTR office - China's promise to buy more US goods is of less interest than the need for "structural changes".

Trade in services with China (exports and imports) totalled an estimated United States dollars 75.0 billion in 2017. "The view, once commonly heard in Beijing, that it could outlast America in a grinding tariff battle has given way to the realisation that, as the country with the huge trade surplus, China has more to lose upfront".

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