Thursday, 17 January, 2019

China trade talks extend into evening of second day

USS Mc Campbell departs U.S. Fleet Activities Yokosuka and transits into Tokyo Bay USS Mc Campbell departs U.S. Fleet Activities Yokosuka and transits into Tokyo Bay
Orlando Vargas | 09 January, 2019, 08:27

To that end, America carries out what it calls "freedom of navigation operations" by sailing within 12 nautical miles of islands claimed by the Chinese - but which also have rival claims from other nations, including USA allies.

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.

"We're looking at commentary from the Fed suggesting they're going to be flexible around rate hikes, there's positive commentary on the United States trade war", said Christopher Anselmo, director at Nasdaq IR Intelligence.

The Wall Street Journal reported Tuesday the two sides were narrowing their differences, with Chinese officials offering greater purchases of U.S. goods and services and Cabinet-level follow-up meetings expected later this month.

The US delegation, which is led by Deputy US Trade Representative Jeffrey Gerrish and includes officials from the Treasury, Commerce, Agriculture and Energy departments, left its hotel without talking to reporters ahead of the talks. "The Chinese side firmly opposes the relevant action by the USA side and urges the U.S.to immediately stop such provocations".

During that 90-day period, agreements "may not be reached until the last day", said Tu Xinquan, director of the China Institute for World Trade Organization Studies at the University of International Business and Economics in Beijing.

China and USA officials started negotiations Monday in the first face-to-face meetings since Presidents Donald Trump and Xi Jinping agreed in early December on a 90-day truce.

China's Foreign Ministry Spokesperson, Lu Kang, addressed the encounter during a press briefing later on Monday, stating that Beijing had "lodged stern representations" with Washington.

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President Donald Trump is increasingly eager to strike a deal with China soon in an effort to perk up financial markets that have slumped on concerns over the trade war, according to people familiar with internal White House deliberations.

The American side is led by a deputy USA trade representative, Jeffrey D. Gerrish, according to the US government.

The US guided-missile destroyer McCampbell sailed near the disputed Paracel Islands in the South China Sea as officials of both the countries kicked off their first face-to-face talks here to resolve the trade dispute during which the world's top two economies have imposed import duties on more than United States dollars 300 billion of each other's goods.

Trump has imposed 25 percent tariffs on $50 billion of Chinese good and 10 percent duties on $200 billion of imports.

For their part, Chinese officials are unhappy with USA curbs on exports of "dual use" technology with possible military applications. The threat of USA tariff hikes was the "dominating factor" for almost half, while others moved because of higher costs or tighter environmental regulation. They have tried to defuse pressure for more sweeping change by offering trade concessions including purchasing more American soybeans, natural gas and other exports. Economists say that is too little time to resolve a laundry list of irritants in trade relations. -China trade talks resumed.

The U.S. economy grew at an annual rate of 3.4 percent in the third quarter, and unemployment is at a five-decade low.

The voyage of the USS McCampbell marks the first publicized FONOP operation of the U.S.in the South China Sea for 2019. There is no question that the Chinese want the deal, they need the deal.

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