Fresh round of US-China trade war talks starts in Beijing

Fresh round of US-China trade war talks starts in Beijing

The talks have become the very first official contact on trade rivalry since early December, when US President Donald Trump and his Chinese counterpart Xi Jinping agreed to try and settle differences during the G20 summit in Argentina.

The statement came as trade talks between China and the United States were under way in Beijing, the first round of face-to-face discussions since both sides agreed to a 90-day truce in a trade war that has roiled worldwide markets.

Trump temporarily suspended the planned increase in tariffs from 10 per cent to 25 per cent on Chinese goods worth $200 billion, although warning that he would go ahead with the plan if a trade agreement was not sealed before the 90-day deadline.

On its part, China has resumed purchases of USA soya beans, suspended import tariffs on United States cars and also released a draft foreign investment law banning forced technology transfers.

Trump said the USA tariffs had hurt China.

"We have a massive trade negotiation going on with China. Their economy's not doing very well", he told reporters on Sunday. "I think the two sides need some kind of agreement for now", Tu said.

Beijing on Friday cut bank-reserve requirements amid slowing growth at home and pressure from the USA tariffs.

As for whether this would affect ongoing trade talks, Mr Lu replied saying that the "appropriate resolution" of issues between the United States and China held benefits to both sides and the world.

"We have a massive trade negotiation going on with China".

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But observers fear the time constraints and substantial range of prickly issues, including those Beijing considers core to its development, will make it hard to reach a deal.

Trump initiated the hostilities because of complaints over unfair Chinese trade practices - concerns shared by the European Union, Japan and others.

Asked about Mr Trump's comments, Mr Lu said the Chinese economy has adequate "resilience and potential", adding: "We have full confidence in the long-term sound fundamentals of the Chinese economy".

U.S. -CHINA TALKS: A U.S. delegation led by Deputy U.S. Trade Representative Jeffrey Gerrish sat down for two days of talks with Chinese officials starting Monday.

The president also is likely to hold talks with Chinese Vice President Wang Qishan at the World Economic Forum later this month in Davos, Switzerland, reported The South China Morning Post.

Economists say the 90-day postponement of tariff increases that had been meant to take effect January 1 may be too short to settle the disputes bedeviling U.S.

"It certainly has hurt the Chinese economy", Ross told CNBC. "And to do that properly would require significant changes in how China manages its economy - changes that would put the Chinese government and its state-owned enterprises in a vulnerable position". Beijing responded by imposing penalties on $110 billion of American goods, slowing down customs clearance for US companies, and suspending issuance of licenses in finance and other industries. Both Taiwan and Vietnam also claim the Paracel Islands, and the USA has contended that its ships passed through only global waters, which Chinese officials refuted. "We have lodged stern representations with the USA side".

The protracted trade war between the top two economies of the world is seen by many as a battle for global leadership. Chinese data last week showed its manufacturing activity contracted for the first time in more than two years.

American companies like Apple and FedEx have already attributed lowered revenue estimates to the trade war with China.

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