US-China trade talks: Donald trump may extend 1st March deadline

Chinese President Xi Jinping said on Friday trade talks with the United States will continue in Washington next week and that he hopes the two sides will be able to reach a mutually beneficial deal in the upcoming negotiations, state media reported.

Xi said during a meeting with US Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin that talks in Beijing this week made progress and that China is willing to solve economic and trade disputes with the United States via cooperation, according to a report by Xinhua.

Lighthizer and Mnuchin said during the meeting that they maintain hope although there is still much work to be done and that they are willing to work with China to reach a deal that is in line with the interests of both countries, according to Xinhua.

The US delegation had a banquet with Chinese counterparts at a Beijing hotel on Thursday night, a person with knowledge of the meetings said. But neither country had offered details on how the two sides might de-escalate a tariff war that has roiled financial markets and disrupted manufacturing supply chains.

US duties on $200 billion worth of imports from China are scheduled to rise to 25 per cent from 10 per cent if no deal is reached by March 1 to address US demands that China curb forced technology transfers and better enforce intellectual property rights.

Although US President Donald Trump said earlier in the week that an extension of the deadline was possible if a "real deal" was close, Larry Kudlow, director of the National Economic Council, said the White House had made no such decision.

Several sources informed about the meetings told Reuters there was little indication negotiators had made major progress on sticking points to pave the way for a potential meeting between Xi and Trump in coming weeks to hammer out a deal.

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Chinese President Xi Jinping said on Friday trade talks with the United States will continue in Washington next week and that he hopes the two sides will be able to reach a mutually beneficial deal in the upcoming negotiations, state media reported.

Chinese President Xi Jinping said on Friday trade talks with the United States will continue in Washington next week and that he hopes the two sides will be able to reach a mutually beneficial deal in the upcoming negotiations, state media reported. Xi said during a meeting with US Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin that talks in Beijing this week made progress and that China is willing to solve economic and trade disputes with the United States via cooperation, according to a report by Xinhua. Lighthizer and Mnuchin said during the meeting that they maintain hope although there is still much work to be done and that they are willing to work with China to reach a deal that is in line with the interests of both countries, according to Xinhua. The US delegation had a banquet with Chinese counterparts at a Beijing hotel on Thursday night, a person with knowledge of the meetings said. But neither country had offered details on how the two sides might de-escalate a tariff war that has roiled financial markets and disrupted manufacturing supply chains. US duties on $200 billion worth of imports from China are scheduled to rise to 25 per cent from 10 per cent if no deal is reached by March 1 to address US demands that China curb forced technology transfers and better enforce intellectual property rights. Although US President Donald Trump said earlier in the week that an extension of the deadline was possible if a "real deal" was close, Larry Kudlow, director of the National Economic Council, said the White House had made no such decision. Several sources informed about the meetings told Reuters there was little indication negotiators had made major progress on sticking points to pave the way for a potential meeting between Xi and Trump in coming weeks to hammer out a deal.

Trade talks with US to continue in Washington next week: Chinese President Xi Jinping

US Treasury Secretary Steven Mnuchin said talks with China went well on Wednesday, as the world's two largest economies try to iron out an agreement to resolve their trade dispute.

"So far, so good," he said when asked by reporters on how the meetings in Beijing went. He did not say who he met.

Mnuchin said earlier he hoped for "productive" trade meetings as the two countries seek to end a festering dispute that has seen both sides level tariffs at one other.

US tariffs on $200 billion worth of imports from China are scheduled to rise to 25 per cent from 10 per cent if the two sides cannot reach a deal by a March 1 deadline, increasing pain and costs in sectors from consumer electronics to agriculture.

Mnuchin, asked by reporters as he left his Beijing hotel what his hopes were for the visit, said "productive meetings". He did not elaborate.

Mnuchin, along with US Trade Representative Robert Lighthizer, arrived in the Chinese capital on Tuesday.

US President Donald Trump said on Tuesday that he could let the deadline for a trade agreement "slide for a little while," but that he would prefer not to and expects to meet with Chinese President Xi Jinping to close the deal at some point.

Trump's advisers have previously described March 1 as a "hard deadline," but Trump told reporters that a delay was now possible.

He said in December that the 90-day truce could be extended, but that he could revert to tariffs if differences could not be resolved.

A growing number of US businesses and lawmakers have expressed hopes for a delay in the tariff increase while the two sides tackle the difficult US demands for major structural policy changes by China aimed at ending the forced transfer of American trade secrets, curbing Beijing's industrial subsidies and enforcing intellectual property rights.

Trump said last week he did not plan to meet with Xi before the March 1 deadline.

Mnuchin and Lighthizer are scheduled to hold talks on Thursday and Friday with Vice Premier Liu He, the top economic adviser to Xi.

The latest round of talks in Beijing kicked off on Monday with discussions among deputy-level officials to try to work out technical details, including a mechanism for enforcing any trade agreement.

China's Foreign Ministry referred questions on the talks to the Ministry of Commerce, which did not respond to a request for comment.

A round of talks at the end of January ended with some progress reported, but no deal, and US declarations that much more work was needed.

Dodge a bullet

James Green, a senior research fellow at Georgetown University, said he believed China was looking to secure a Xi-Trump meeting in the hope that it would make a near-term deal on tariffs far more likely.

"From their point of view, they would have dodged a bullet," Green, who was USTR's top official at the US embassy in Beijing until mid-2018, told Reuters by telephone.

But there is growing bipartisan concern in the United States about increasing state control of China's economy, military activity in the South China Sea, and security issues around its technology companies.

Even if the two sides could come to terms on tariffs, that might not mean an end to trade friction, Green added.

"I think that whatever we might get for an agreement, it will be a pause, because the US government is still going to move forward in the telecoms sector, on law enforcement and legal action, and on sanctions-related issues."

US Secretary of State Mike Pompeo cautioned allies on Monday against deploying equipment from Chinese telecoms giant Huawei Technologies on their soil, saying it would make it more difficult for Washington to "partner alongside them".

The United States and its Western allies believe Huawei's apparatus could be used for espionage, and see its expansion into central Europe as a way to gain a foothold in the European Union market.

Both the Chinese government and Huawei have dismissed these concerns.

US Treasury Secretary Steven Mnuchin said talks with China went well on Wednesday, as the world's two largest economies try to iron out an agreement to resolve their trade dispute.

US Treasury Secretary Steven Mnuchin said talks with China went well on Wednesday, as the world's two largest economies try to iron out an agreement to resolve their trade dispute. "So far, so good," he said when asked by reporters on how the meetings in Beijing went. He did not say who he met. Mnuchin said earlier he hoped for "productive" trade meetings as the two countries seek to end a festering dispute that has seen both sides level tariffs at one other. US tariffs on $200 billion worth of imports from China are scheduled to rise to 25 per cent from 10 per cent if the two sides cannot reach a deal by a March 1 deadline, increasing pain and costs in sectors from consumer electronics to agriculture. Mnuchin, asked by reporters as he left his Beijing hotel what his hopes were for the visit, said "productive meetings". He did not elaborate. Mnuchin, along with US Trade Representative Robert Lighthizer, arrived in the Chinese capital on Tuesday. US President Donald Trump said on Tuesday that he could let the deadline for a trade agreement "slide for a little while," but that he would prefer not to and expects to meet with Chinese President Xi Jinping to close the deal at some point. Trump's advisers have previously described March 1 as a "hard deadline," but Trump told reporters that a delay was now possible. He said in December that the 90-day truce could be extended, but that he could revert to tariffs if differences could not be resolved. A growing number of US businesses and lawmakers have expressed hopes for a delay in the tariff increase while the two sides tackle the difficult US demands for major structural policy changes by China aimed at ending the forced transfer of American trade secrets, curbing Beijing's industrial subsidies and enforcing intellectual property rights. Trump said last week he did not plan to meet with Xi before the March 1 deadline. Mnuchin and Lighthizer are scheduled to hold talks on Thursday and Friday with Vice Premier Liu He, the top economic adviser to Xi. The latest round of talks in Beijing kicked off on Monday with discussions among deputy-level officials to try to work out technical details, including a mechanism for enforcing any trade agreement. China's Foreign Ministry referred questions on the talks to the Ministry of Commerce, which did not respond to a request for comment. A round of talks at the end of January ended with some progress reported, but no deal, and US declarations that much more work was needed. Dodge a bullet James Green, a senior research fellow at Georgetown University, said he believed China was looking to secure a Xi-Trump meeting in the hope that it would make a near-term deal on tariffs far more likely. "From their point of view, they would have dodged a bullet," Green, who was USTR's top official at the US embassy in Beijing until mid-2018, told Reuters by telephone. But there is growing bipartisan concern in the United States about increasing state control of China's economy, military activity in the South China Sea, and security issues around its technology companies. Even if the two sides could come to terms on tariffs, that might not mean an end to trade friction, Green added. "I think that whatever we might get for an agreement, it will be a pause, because the US government is still going to move forward in the telecoms sector, on law enforcement and legal action, and on sanctions-related issues." US Secretary of State Mike Pompeo cautioned allies on Monday against deploying equipment from Chinese telecoms giant Huawei Technologies on their soil, saying it would make it more difficult for Washington to "partner alongside them". The United States and its Western allies believe Huawei's apparatus could be used for espionage, and see its expansion into central Europe as a way to gain a foothold in the European Union market. Both the Chinese government and Huawei have dismissed these concerns.

'So far, so good,' Steven Mnuchin says of trade talks in China

Asian shares started the week on the backfoot as investors were unable to shake off worries about global growth, US politics and the Sino-US trade war, keeping the safe-haven dollar well bid near a six-week top against major currencies.

Chinese shares see-sawed on Monday after they resumed trading following a week-long Lunar New Year holiday. The blue-chip index was last up 0.4 per cent, Australian stocks were down 0.6 per cent while South Korea eased 0.2 per cent.

That left MSCI's broadest index of Asia-Pacific shares outside Japan off 0.1 per cent after it was toppled from a four-month top on Friday.

Trading volumes are expected to be light with Japan on public holiday.

Investors are now looking ahead to trade talks this week with a delegation of US&nbsp;officials travelling to China for the next round of negotiations.

"After we went home on Friday, Asian equities closed the week weaker... reflecting an increased level of apprehension on whether or not the US and China can find an agreement to de-escalate their trade tensions ahead of the March 1st deadline," said Rodrigo Catril, senior forex strategist at National Australia Bank.

"US-led trade uncertainty along with increasing concerns over the extent of the current global growth slowdown has seen an increase in demand for core global bonds," Catril said.

"Against a backdrop of uncertainty and despite a Fed that is comfortably on hold, the dollar continues to win the least ugly contest."

The US Federal Reserve has signalled patience on policy after it delivered four hikes in 2018, citing growing economic risks from a slowdown in global growth.

The dollar index held near a six-week high around 96.625 against a basket of currencies, after notching up its strongest weekly gain in six months as traders piled into the greenback in a safe-haven move.

The collapse in talks between US Democrat and Republican lawmakers over the weekend amid a clash over immigrant detention policy raised fears of another government shutdown.

That development was yet another worry for markets already under strain from a drumroll of gloomy news on the global economy. Last week, the European Commission sharply downgraded eurozone growth for this year and next and US&nbsp;President Donald Trump added to the anxiety with a declaration that he had no plans to meet with Chinese President Xi Jinping before the March 1 deadline to achieve a trade deal.

"Growth is probably the big area of risk – the US is still on a healthy track but China stabilisation is more hope than reality at the moment while European momentum continues to soften," JPMorgan analysts said in a note.

"Investors have plenty to be nervous about, including the ongoing growth softness in Europe and the risk this drags the other major geographies down with it."

The rising pressure on growth means the near term fortunes of the equity markets will partly depend on earnings from major US companies. These include Coca-Cola Co, PepsiCo Inc, Walmart Inc, Home Depot Inc, Macy's Inc and Gap Inc for further clues about the health of the consumer sector.

Analysts now expect first-quarter earnings for S&amp;P 500 companies to decline 0.1 per cent from a year earlier, which would be the first such quarterly profit decline since 2016, according to IBES data from Refinitiv.

Elsewhere, the euro was barely changed at $1.1324 after five straight days of losses took it to more than 2 weeks lows. Sterling dithered at $1.2934.

The Australian dollar inched up from Friday's one-month lows although sentiment was still cautious after the country's central bank opened the door to a possible rate cut.

Oil prices slipped on concerns about slowing global demand amid a pick-up in US drilling activity.

US crude was 73 cents weaker at $51.99 per barrel while Brent fell 69 cents to $61.41.

Asian shares started the week on the backfoot as investors were unable to shake off worries about global growth, US politics and the Sino-US trade war, keeping the safe-haven dollar well bid near a six-week top against major currencies.

Asian shares started the week on the backfoot as investors were unable to shake off worries about global growth, US politics and the Sino-US trade war, keeping the safe-haven dollar well bid near a six-week top against major currencies. Chinese shares see-sawed on Monday after they resumed trading following a week-long Lunar New Year holiday. The blue-chip index was last up 0.4 per cent, Australian stocks were down 0.6 per cent while South Korea eased 0.2 per cent. That left MSCI's broadest index of Asia-Pacific shares outside Japan off 0.1 per cent after it was toppled from a four-month top on Friday. Trading volumes are expected to be light with Japan on public holiday. Investors are now looking ahead to trade talks this week with a delegation of US officials travelling to China for the next round of negotiations. "After we went home on Friday, Asian equities closed the week weaker... reflecting an increased level of apprehension on whether or not the US and China can find an agreement to de-escalate their trade tensions ahead of the March 1st deadline," said Rodrigo Catril, senior forex strategist at National Australia Bank. "US-led trade uncertainty along with increasing concerns over the extent of the current global growth slowdown has seen an increase in demand for core global bonds," Catril said. "Against a backdrop of uncertainty and despite a Fed that is comfortably on hold, the dollar continues to win the least ugly contest." The US Federal Reserve has signalled patience on policy after it delivered four hikes in 2018, citing growing economic risks from a slowdown in global growth. The dollar index held near a six-week high around 96.625 against a basket of currencies, after notching up its strongest weekly gain in six months as traders piled into the greenback in a safe-haven move. The collapse in talks between US Democrat and Republican lawmakers over the weekend amid a clash over immigrant detention policy raised fears of another government shutdown. That development was yet another worry for markets already under strain from a drumroll of gloomy news on the global economy. Last week, the European Commission sharply downgraded eurozone growth for this year and next and US President Donald Trump added to the anxiety with a declaration that he had no plans to meet with Chinese President Xi Jinping before the March 1 deadline to achieve a trade deal. "Growth is probably the big area of risk – the US is still on a healthy track but China stabilisation is more hope than reality at the moment while European momentum continues to soften," JPMorgan analysts said in a note. "Investors have plenty to be nervous about, including the ongoing growth softness in Europe and the risk this drags the other major geographies down with it." The rising pressure on growth means the near term fortunes of the equity markets will partly depend on earnings from major US companies. These include Coca-Cola Co, PepsiCo Inc, Walmart Inc, Home Depot Inc, Macy's Inc and Gap Inc for further clues about the health of the consumer sector. Analysts now expect first-quarter earnings for S&P 500 companies to decline 0.1 per cent from a year earlier, which would be the first such quarterly profit decline since 2016, according to IBES data from Refinitiv. Elsewhere, the euro was barely changed at $1.1324 after five straight days of losses took it to more than 2 weeks lows. Sterling dithered at $1.2934. The Australian dollar inched up from Friday's one-month lows although sentiment was still cautious after the country's central bank opened the door to a possible rate cut. Oil prices slipped on concerns about slowing global demand amid a pick-up in US drilling activity. US crude was 73 cents weaker at $51.99 per barrel while Brent fell 69 cents to $61.41.

Asian shares slip, looming US-China trade talks in focus

White House economic adviser Larry Kudlow has played down reports of a breakthrough in US-China trade talks, but said progress had been made.

"We've made some progress with China in the deputy's meeting in Beijing," Larry Kudlow, director of the National Economic Council, told Fox Business.&nbsp;

But he added, "Nothing has been resolved, nothing on paper, no contracts."

Recent news reports of a deal being imminent were not accurate, he said.

Bloomberg had reported earlier Friday that Beijing had offered to eliminate its soaring trade surplus with the United States in five years.

The US sent a delegation led by Deputy Trade Representative Jeffrey Gerrish to Beijing earlier this month, where they held talks with China's foreign ministry to seek ways to end their trade war.

China's chief negotiator on trade disputes with the United States, Vice Premier Liu He, is due in Washington on January 30 and 31 for the next round talks.

In December, President Trump and Chinese leader Xi Jinping agreed to a truce in their three-month trade war.

Washington suspended plans to increase tariffs on Chinese goods, to give negotiators space to find a solution to the dispute, which has triggered fears of a global economic slowdown.

White House economic adviser Larry Kudlow has played down reports of a breakthrough in US-China trade talks, but said progress had been made. "We've made some progress with China in the deputy's meeting in Beijing," Larry Kudlow, director of the National Economic Council, told Fox Business.

White House economic adviser Larry Kudlow has played down reports of a breakthrough in US-China trade talks, but said progress had been made. "We've made some progress with China in the deputy's meeting in Beijing," Larry Kudlow, director of the National Economic Council, told Fox Business. But he added, "Nothing has been resolved, nothing on paper, no contracts." Recent news reports of a deal being imminent were not accurate, he said. Bloomberg had reported earlier Friday that Beijing had offered to eliminate its soaring trade surplus with the United States in five years. The US sent a delegation led by Deputy Trade Representative Jeffrey Gerrish to Beijing earlier this month, where they held talks with China's foreign ministry to seek ways to end their trade war. China's chief negotiator on trade disputes with the United States, Vice Premier Liu He, is due in Washington on January 30 and 31 for the next round talks. In December, President Trump and Chinese leader Xi Jinping agreed to a truce in their three-month trade war. Washington suspended plans to increase tariffs on Chinese goods, to give negotiators space to find a solution to the dispute, which has triggered fears of a global economic slowdown.

No breakthrough in US-China trade talks: Trump adviser

US President Donald Trump boasted Tuesday that <a href="http://www.wionews.com/world/i-am-a-tariff-man-if-a-fair-deal-is-made-with-china-i-will-happily-sign-trump-181512">US-China trade negotiations were going "very well"</a> as officials held talks in Beijing that will spill into a third day.

A member of the US delegation said the two sides would resume talks on Wednesday as they continue their first face-to-face meetings since Trump and Chinese President Xi Jinping agreed to a tariff truce during a meeting in Argentina on December 1.

The talks are taking longer than expected as the Chinese commerce ministry had said last week that the meetings would take place on Monday and Tuesday.

"Talks with China are going very well!" Trump said on Twitter, but gave no further information.

The Wall Street Journal reported Tuesday the two sides were narrowing their differences, with Chinese officials offering greater purchases of US goods and services and Cabinet-level follow-up meetings expected later this month.

Word of progress briefly drove US stocks higher in early morning trading but major indices soon pared much of those gains.

The meeting between the US delegation -- led by Deputy US Trade Representative Jeffrey Gerrish and including officials from the Treasury, Commerce, Agriculture and Energy Departments -- and the Chinese side ran late into Tuesday night.

"I can confirm we are continuing tomorrow (Wednesday)," Steven Winberg, assistant energy secretary, told reporters after returning to his hotel in Beijing.&nbsp;

He declined to provide more details.

The Trump administration wants Beijing to abandon its strategy of seeking global industrial predominance through the alleged theft and forced transfer of American technology as well as massive state intervention in markets.

The truce came after the two sides imposed import duties on more than $300 billion of each other's goods.

US Commerce Secretary Wilbur Ross said Monday that China's economy was more vulnerable to the fallout from the trade war.

"It certainly has hurt the Chinese economy," Ross told CNBC, noting that China exports many more goods to the United States than the other way around.

Ross said there was a "very good chance" of reaching an agreement, although monitoring compliance would present a challenge.

Without a resolution, punitive US duty rates on $200 billion in Chinese goods are due to rise to 25 percent from 10 percent on March 2.

Geopolitical distractions 
The second day of trade negotiations coincided with an unannounced visit by North Korean leader Kim Jong Un for talks with Xi in Beijing, amid speculation of a second meeting between Kim and Trump.

Some analysts say that China -- Pyongyang's key diplomatic ally and main source of trade -- could use Kim's visit as a bargaining chip in the US trade talks.

But Bonnie Glaser, a senior adviser at the Center for Strategic and International Studies, said the timing of the North Korean leader's arrival could be coincidental.

"I don't see any linkage with the trade talks," said Glaser.

"China's ability to use (North Korea) as leverage has diminished considerably since Trump opened his own channel to Kim," she said.

Chinese foreign ministry spokesman Lu Kang said Kim's visit and the trade talks were "two separate matters".

"China's position in the China-US trade friction and its solutions to the friction is open, it's transparent," Lu said at a regular press briefing.

"We have shown our sincerity, we have established our stand in this, so we don't need other actions to gain the confidence of the US. The US is very clear about China's stance."

A separate geopolitical issue angered China on Monday when a US Navy guided-missile destroyer sailed near disputed islands in the South China Sea -- a vast expanse claimed by Beijing.

China called it a violation of its sovereignty that has damaged "peace, safety and order" in the waterway.

The United States periodically sends planes and warships through the area to signal to Beijing its right under international law to pass through the waters. 
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US President Donald Trump boasted Tuesday that US-China trade negotiations were going "very well" as officials held talks in Beijing that will spill into a third day.

US President Donald Trump boasted Tuesday that US-China trade negotiations were going "very well" as officials held talks in Beijing that will spill into a third day. A member of the US delegation said the two sides would resume talks on Wednesday as they continue their first face-to-face meetings since Trump and Chinese President Xi Jinping agreed to a tariff truce during a meeting in Argentina on December 1. The talks are taking longer than expected as the Chinese commerce ministry had said last week that the meetings would take place on Monday and Tuesday. "Talks with China are going very well!" Trump said on Twitter, but gave no further information. The Wall Street Journal reported Tuesday the two sides were narrowing their differences, with Chinese officials offering greater purchases of US goods and services and Cabinet-level follow-up meetings expected later this month. Word of progress briefly drove US stocks higher in early morning trading but major indices soon pared much of those gains. The meeting between the US delegation -- led by Deputy US Trade Representative Jeffrey Gerrish and including officials from the Treasury, Commerce, Agriculture and Energy Departments -- and the Chinese side ran late into Tuesday night. "I can confirm we are continuing tomorrow (Wednesday)," Steven Winberg, assistant energy secretary, told reporters after returning to his hotel in Beijing. He declined to provide more details. The Trump administration wants Beijing to abandon its strategy of seeking global industrial predominance through the alleged theft and forced transfer of American technology as well as massive state intervention in markets. The truce came after the two sides imposed import duties on more than $300 billion of each other's goods. US Commerce Secretary Wilbur Ross said Monday that China's economy was more vulnerable to the fallout from the trade war. "It certainly has hurt the Chinese economy," Ross told CNBC, noting that China exports many more goods to the United States than the other way around. Ross said there was a "very good chance" of reaching an agreement, although monitoring compliance would present a challenge. Without a resolution, punitive US duty rates on $200 billion in Chinese goods are due to rise to 25 percent from 10 percent on March 2. Geopolitical distractions The second day of trade negotiations coincided with an unannounced visit by North Korean leader Kim Jong Un for talks with Xi in Beijing, amid speculation of a second meeting between Kim and Trump. Some analysts say that China -- Pyongyang's key diplomatic ally and main source of trade -- could use Kim's visit as a bargaining chip in the US trade talks. But Bonnie Glaser, a senior adviser at the Center for Strategic and International Studies, said the timing of the North Korean leader's arrival could be coincidental. "I don't see any linkage with the trade talks," said Glaser. "China's ability to use (North Korea) as leverage has diminished considerably since Trump opened his own channel to Kim," she said. Chinese foreign ministry spokesman Lu Kang said Kim's visit and the trade talks were "two separate matters". "China's position in the China-US trade friction and its solutions to the friction is open, it's transparent," Lu said at a regular press briefing. "We have shown our sincerity, we have established our stand in this, so we don't need other actions to gain the confidence of the US. The US is very clear about China's stance." A separate geopolitical issue angered China on Monday when a US Navy guided-missile destroyer sailed near disputed islands in the South China Sea -- a vast expanse claimed by Beijing. China called it a violation of its sovereignty that has damaged "peace, safety and order" in the waterway. The United States periodically sends planes and warships through the area to signal to Beijing its right under international law to pass through the waters.

Trump says US-China trade talks going 'very well'