China has demonstrated more than enough sincerity to reach a mutually beneficial deal and end trade tensions with the United States. However, trapped in hegemonic ideology, the U.S. has responded by unilateral and protectionist tariff hikes that put world economy in danger, according to a commentary published by China's Xinhua News Agency on Sunday.

China's utmost sincerity in trade talks a sign of strength

<a href="https://www.wionews.com/world/china-slams-us-lies-about-huaweis-government-ties-221382">China's</a> banking and insurance regulator on Saturday said it did not expect a persistent decline in the yuan and warned speculative short sellers they would suffer "heavy losses" if they bet against the currency.

The yuan has lost more than 2.5% against the dollar since the festering <a href="https://www.wionews.com/world/imf-warns-us-china-trade-war-will-jeopardize-2019-global-growth-221117">China-US trade dispute</a> intensified earlier this month. It is now less than a tenth of a yuan away from the 7-per-dollar level authorities have in the past indicated as a floor.

"Short-term fluctuation of the yuan exchange rate is normal, but in the long-run, China's economic fundamentals determine that the yuan will not depreciate persistently," Xiao Yuanqi, the spokesman for the China Banking and Insurance Regulatory Commission (CBIRC), told a finance forum in Beijing.

"Those who speculate and short the yuan will for sure suffer heavy loss."

Xiao was reading from a script prepared for Guo Shuqing, CBIRC's chairman and the Communist Party chief of the People's Bank of China (PBOC). Guo was scheduled to give a speech at the same forum but couldn't make it due to last minute arrangements.

Xiao also said Beijing must look out for hot money moving in and out of the country, as well as large amounts of capital flowing into the frothy real estate market.

"We must be especially vigilant about money from overseas moving in and out in large quantities, and hot speculative money, and we must resolutely fight bubbles in real estate and financial assets," he said.

Chinese policymakers have struggled to manage bubble risks in the property market, the world's largest, without hurting growth in the sector, which is crucial for the wider economy.

China's banking and insurance regulator on Saturday said it did not expect a persistent decline in the yuan and warned speculative short sellers they would suffer "heavy losses" if they bet against the currency.

China's banking and insurance regulator on Saturday said it did not expect a persistent decline in the yuan and warned speculative short sellers they would suffer "heavy losses" if they bet against the currency. The yuan has lost more than 2.5% against the dollar since the festering China-US trade dispute intensified earlier this month. It is now less than a tenth of a yuan away from the 7-per-dollar level authorities have in the past indicated as a floor. "Short-term fluctuation of the yuan exchange rate is normal, but in the long-run, China's economic fundamentals determine that the yuan will not depreciate persistently," Xiao Yuanqi, the spokesman for the China Banking and Insurance Regulatory Commission (CBIRC), told a finance forum in Beijing. "Those who speculate and short the yuan will for sure suffer heavy loss." Xiao was reading from a script prepared for Guo Shuqing, CBIRC's chairman and the Communist Party chief of the People's Bank of China (PBOC). Guo was scheduled to give a speech at the same forum but couldn't make it due to last minute arrangements. Xiao also said Beijing must look out for hot money moving in and out of the country, as well as large amounts of capital flowing into the frothy real estate market. "We must be especially vigilant about money from overseas moving in and out in large quantities, and hot speculative money, and we must resolutely fight bubbles in real estate and financial assets," he said. Chinese policymakers have struggled to manage bubble risks in the property market, the world's largest, without hurting growth in the sector, which is crucial for the wider economy.

China's top banking regulator says yuan bears will suffer 'heavy losses'

&nbsp;The US&nbsp;President<a href="https://www.wionews.com/world/us-consumers-businesses-to-pay-for-tariffs-on-chinese-goods-expert-219096"> Donald&nbsp;Trump&nbsp;said his tariffs on Chinese goods </a>are causing companies to move production out of China to Vietnam and other countries in Asia and added that any agreement with China cannot be a "50-50" deal.

In an interview with Fox News Channel recorded last week and aired on Sunday night,&nbsp;Trump&nbsp;said that the United States and China "had a very strong deal, we had a good deal, and they changed it. And I said that's OK, we're going to tariff their products."

No further trade talks between top Chinese and US&nbsp;trade negotiators have been scheduled since the last round ended on May 10 - the same day&nbsp;Trump&nbsp;raised the tariff rate on $200 billion worth of Chinese products from 10 per cent.

Trump&nbsp;took the step after China soured the negotiations by seeking major changes to a deal that US&nbsp;officials said had been largely agreed.

Since then, China has struck a sterner tone in its rhetoric, suggesting that a resumption of talks aimed at ending the 10-month trade war between the world's two largest economies was unlikely to happen soon.

Trump, who said the interview with Fox News host Steve Hilton had taken place two days after he raised the tariffs, said he would be happy to simply keep tariffs on Chinese products because the United States would be taking in $100 billion or more in tariffs.

But he added that he believed that China would eventually make a deal with the United States "because they're getting killed with the tariffs, China' getting totally killed."

But he said that he had told<a href="https://www.wionews.com/world/there-is-no-clash-between-different-civilisations-says-president-xi-amid-us-china-trade-war-218993"> Chinese President Xi Jinping</a> before the most recent rounds of talks that any deal could not be "50-50" between the two countries and had to be more in favour of the United States because of past trade practices by China.

Trump&nbsp;also said that Democratic presidential candidate and former US vice president Joe Biden should be investigated over a conservative author's allegation that Biden's son Hunter Biden took advantage of his father's position to sign a lucrative business deal with state-controlled Bank of China. The allegation was made in Peter Schweizer's 2018 book "Secret Empires."

Asked if this should be investigated,&nbsp;Trump&nbsp;said,&nbsp;"100 per cent. It’s a disgrace and then (Joe Biden) says China’s not a competitor of ours. China is a massive competitor of ours. They want to take over the world."

The US President Donald Trump said his tariffs on Chinese goods are causing companies to move production out of China to Vietnam and other countries in Asia and added that any agreement with China cannot be a "50-50" deal.

The US President Donald Trump said his tariffs on Chinese goods are causing companies to move production out of China to Vietnam and other countries in Asia and added that any agreement with China cannot be a "50-50" deal. In an interview with Fox News Channel recorded last week and aired on Sunday night, Trump said that the United States and China "had a very strong deal, we had a good deal, and they changed it. And I said that's OK, we're going to tariff their products." No further trade talks between top Chinese and US trade negotiators have been scheduled since the last round ended on May 10 - the same day Trump raised the tariff rate on $200 billion worth of Chinese products from 10 per cent. Trump took the step after China soured the negotiations by seeking major changes to a deal that US officials said had been largely agreed. Since then, China has struck a sterner tone in its rhetoric, suggesting that a resumption of talks aimed at ending the 10-month trade war between the world's two largest economies was unlikely to happen soon. Trump, who said the interview with Fox News host Steve Hilton had taken place two days after he raised the tariffs, said he would be happy to simply keep tariffs on Chinese products because the United States would be taking in $100 billion or more in tariffs. But he added that he believed that China would eventually make a deal with the United States "because they're getting killed with the tariffs, China' getting totally killed." But he said that he had told Chinese President Xi Jinping before the most recent rounds of talks that any deal could not be "50-50" between the two countries and had to be more in favour of the United States because of past trade practices by China. Trump also said that Democratic presidential candidate and former US vice president Joe Biden should be investigated over a conservative author's allegation that Biden's son Hunter Biden took advantage of his father's position to sign a lucrative business deal with state-controlled Bank of China. The allegation was made in Peter Schweizer's 2018 book "Secret Empires." Asked if this should be investigated, Trump said, "100 per cent. It’s a disgrace and then (Joe Biden) says China’s not a competitor of ours. China is a massive competitor of ours. They want to take over the world."

Trump says tariffs making companies leave China, a deal can't be '50-50'

Oil prices were moving higher on Tuesday, though gains were checked amid an escalation in the trade war between the United States and China.

Brent crude futures were at $70.30 a barrel at 0318 GMT, up 7 cents, or 0.1%, from their last close. Brent ended the previous session down 0.6%.

The US&nbsp;West Texas Intermediate (WTI) crude futures were at $61.11 per barrel, up 7 cents, or 0.1%, from their previous settlement. WTI closed down 1% on Monday.

Headlines from the Middle East grabbed attention early in the session after Saudi Arabia said two of its oil tankers were among those attacked off the coast of the United Arab Emirates, describing it as an attempt to undermine the security of supply amid United States-Iran tensions.

But analysts said the US-China trade war continued to cast a pall on the market as a whole.

"This ramp-up in trade tensions, which I don't really think people saw coming, is going to have an impact, a broad impact," Phin Ziebell, senior economist at National Australia Bank said by phone. "You can't avoid the impact on the oil market."

China on Monday ignored a warning from US&nbsp;President Donald Trump and moved to impose higher tariffs on a range of US goods including frozen vegetables and liquefied natural gas

The US&nbsp;Energy Department said on Monday that it was confident global oil markets are well supplied.

But that may change by the end of the year as oil production capacity could drop to under 1% of global supply-demand by the end of the year after the US&nbsp;imposed sanctions on Iran and Venezuela, the analyst said.

Saudi Arabia, the world's biggest oil exporter, is likely to raise its production much more cautiously than last year when production from the Kingdom rose to record highs above 11 million bpd in November after calls from Trump to replace Iranian barrels.

Riyadh, for now, is reluctant to boost oil supply too quickly and risk a price crash and a build-up in inventories, despite pressure from the Trump administration to reduce oil prices.

Oil prices were moving higher on Tuesday, though gains were checked amid an escalation in the trade war between the United States and China. Brent crude futures were at $70.

Oil prices were moving higher on Tuesday, though gains were checked amid an escalation in the trade war between the United States and China. Brent crude futures were at $70.30 a barrel at 0318 GMT, up 7 cents, or 0.1%, from their last close. Brent ended the previous session down 0.6%. The US West Texas Intermediate (WTI) crude futures were at $61.11 per barrel, up 7 cents, or 0.1%, from their previous settlement. WTI closed down 1% on Monday. Headlines from the Middle East grabbed attention early in the session after Saudi Arabia said two of its oil tankers were among those attacked off the coast of the United Arab Emirates, describing it as an attempt to undermine the security of supply amid United States-Iran tensions. But analysts said the US-China trade war continued to cast a pall on the market as a whole. "This ramp-up in trade tensions, which I don't really think people saw coming, is going to have an impact, a broad impact," Phin Ziebell, senior economist at National Australia Bank said by phone. "You can't avoid the impact on the oil market." China on Monday ignored a warning from US President Donald Trump and moved to impose higher tariffs on a range of US goods including frozen vegetables and liquefied natural gas The US Energy Department said on Monday that it was confident global oil markets are well supplied. But that may change by the end of the year as oil production capacity could drop to under 1% of global supply-demand by the end of the year after the US imposed sanctions on Iran and Venezuela, the analyst said. Saudi Arabia, the world's biggest oil exporter, is likely to raise its production much more cautiously than last year when production from the Kingdom rose to record highs above 11 million bpd in November after calls from Trump to replace Iranian barrels. Riyadh, for now, is reluctant to boost oil supply too quickly and risk a price crash and a build-up in inventories, despite pressure from the Trump administration to reduce oil prices.

Oil prices rise, gains tempered by US-China trade tensions

China Neglect US President Trump's Warning Not To Retaliate. Global Markets Are Struggling As Trade Disputes Between US & China Come To The Fore.

Gravitas: US-China Trade Tensions Escalate, China Announces Retaliatory Tariffs

By raising tariffs on Chinese products, the United States will harm the interests of its businesses and consumers in the long term, according to Chinese economic experts at a seminar on China-US trade in Beijing on Sunday.

US raising tariffs will harm American businesses, consumers: Chinese experts

China's top trade negotiator Liu He said on Friday in Washington that<a href="https://www.wionews.com/world/us-officials-says-china-trade-talks-constructive-217600"> trade talks with the US</a> would continue in Beijing but warned that there would be no concessions on "important principles".

"Negotiations have not broken down, but rather on the contrary, this is only a normal twist in the negotiations between the two countries, it is inevitable," Liu told Chinese media.

<a href="https://www.wionews.com/photos/top-facts-how-us-china-talks-differ-from-any-other-trade-deal-217563">In pics: How US-China talks differ from any other trade deal</a>

"Both sides agree they will meet again in Beijing in the future and keep pushing forward the negotiations," he said without giving a date.

Although Liu deemed the two days of talks in the US "productive" he said differences continued to exist.

"We have a consensus in lots of areas but to speak frankly there are areas we have differences on, and we believe these concern big principles," he said.

"Every country has important principles, and we will not make concessions on matters of principle."

US Treasury Secretary Steven Mnuchin said earlier, talks to end a worrisome&nbsp;<a href="https://www.wionews.com/photos/top-facts-how-us-china-talks-differ-from-any-other-trade-deal-217563">US-China trade battle</a>&nbsp;were "constructive," giving a sign of hope that Washington and Beijing could seal a deal to avert damage to the global economy.

"They were constructive discussions between both parties, that's all we're going to say," Mnuchin was quoted as saying by CNBC following a two-hour negotiating session.

President Donald&nbsp;<a href="https://www.wionews.com/world/tariffs-will-bring-in-far-more-wealth-to-our-country-than-even-phenomenal-deal-of-traditional-kind-donald-trump-217507">Trump said Friday he was in no hurry to reach a deal with Beijing</a>, arguing the United States was negotiating from a position of strength.

Just hours earlier, Washington had pulled the trigger on an increase in punitive duties on $200 billion in Chinese imports to 25 per cent from 10 per cent, and Beijing responded vowing to take the "necessary countermeasures."

China's top trade negotiator Liu He said on Friday in Washington that trade talks with the US would continue in Beijing but warned that there would be no concessions on "important principles".

China's top trade negotiator Liu He said on Friday in Washington that trade talks with the US would continue in Beijing but warned that there would be no concessions on "important principles". "Negotiations have not broken down, but rather on the contrary, this is only a normal twist in the negotiations between the two countries, it is inevitable," Liu told Chinese media. In pics: How US-China talks differ from any other trade deal "Both sides agree they will meet again in Beijing in the future and keep pushing forward the negotiations," he said without giving a date. Although Liu deemed the two days of talks in the US "productive" he said differences continued to exist. "We have a consensus in lots of areas but to speak frankly there are areas we have differences on, and we believe these concern big principles," he said. "Every country has important principles, and we will not make concessions on matters of principle." US Treasury Secretary Steven Mnuchin said earlier, talks to end a worrisome US-China trade battle were "constructive," giving a sign of hope that Washington and Beijing could seal a deal to avert damage to the global economy. "They were constructive discussions between both parties, that's all we're going to say," Mnuchin was quoted as saying by CNBC following a two-hour negotiating session. President Donald Trump said Friday he was in no hurry to reach a deal with Beijing, arguing the United States was negotiating from a position of strength. Just hours earlier, Washington had pulled the trigger on an increase in punitive duties on $200 billion in Chinese imports to 25 per cent from 10 per cent, and Beijing responded vowing to take the "necessary countermeasures."

China says it will hold more trade talks with US in Beijing

The rupee depreciated by 18 paise to 69.89 against the US dollar in early trade Thursday amid heavy sell-off in the domestic equity market and foreign fund outflows.

Forex traders said, the US-China trade concerns also weighed on the domestic currency.

The rupee opened weak at 69.70 at the interbank forex market and then fell further to 69.89, down 18 paise over its last close.

The rupee had settled at 69.71 against the US dollar Wednesday.

China has threatened to take retaliatory measures if US President Donald Trump raises tariffs on $200 billion worth of goods ahead of the crucial 11th round of talks aimed at ending the trade war between the world's two largest economies.

The talks are due to be held on May 9-10 in Washington between trade delegations headed by Chinese Vice Premier Liu He and US Trade Representative Robert Lighthizer and US Treasury Secretary Steven Mnuchin.

On the domestic front, foreign institutional investors (FIIs) pulled out Rs 645.08 crore on a net basis Wednesday, provisional data showed.

Domestic bourses opened on a negative note Thursday with benchmark indices Sensex trading 191.71 points down at 37,606.72 and Nifty down 54.60 points at 11,304.85.

Forex dealers said easing crude oil prices however supported the local unit and restricted the downfall. 
Brent crude futures, the global oil benchmark, fell 0.78 per cent to $69.82 per barrel.

The rupee depreciated by 18 paise to 69.89 against the US dollar in early trade Thursday amid heavy sell-off in the domestic equity market and foreign fund outflows.

The rupee depreciated by 18 paise to 69.89 against the US dollar in early trade Thursday amid heavy sell-off in the domestic equity market and foreign fund outflows. Forex traders said, the US-China trade concerns also weighed on the domestic currency. The rupee opened weak at 69.70 at the interbank forex market and then fell further to 69.89, down 18 paise over its last close. The rupee had settled at 69.71 against the US dollar Wednesday. China has threatened to take retaliatory measures if US President Donald Trump raises tariffs on $200 billion worth of goods ahead of the crucial 11th round of talks aimed at ending the trade war between the world's two largest economies. The talks are due to be held on May 9-10 in Washington between trade delegations headed by Chinese Vice Premier Liu He and US Trade Representative Robert Lighthizer and US Treasury Secretary Steven Mnuchin. On the domestic front, foreign institutional investors (FIIs) pulled out Rs 645.08 crore on a net basis Wednesday, provisional data showed. Domestic bourses opened on a negative note Thursday with benchmark indices Sensex trading 191.71 points down at 37,606.72 and Nifty down 54.60 points at 11,304.85. Forex dealers said easing crude oil prices however supported the local unit and restricted the downfall. Brent crude futures, the global oil benchmark, fell 0.78 per cent to $69.82 per barrel.

Rupee depreciates 18 paise to 69.89 against dollar as US-China trade concern weighs in

By Charles Hankla 
 
Last week President Donald Trump seemed to be on the cusp of a trade deal with China. A couple of threatening tweets later, the odds of ending the 16-month-old US-China trade war have dropped dramatically.

Whether or not American and Chinese trade negotiators ultimately salvage a deal – the US says China backpedaled on a commitment and intends to raise tariffs within days – the episode highlights drawbacks in Trump’s trade strategy, which tends to be protectionist, confrontational and negotiated one on one.

Unfortunately, Trump’s policies are only an acceleration of a trend in international trade that’s been going on for several decades. It’s a move away from multilateralism – in which many countries agree on certain trading principles – and toward bilateralism – which pits nation against nation, raising the stakes.

I am a specialist in the politics of trade. My observations lead me to believe that the increasing abandonment of multilateralism will have pernicious long-term consequences. Not only will trade become more costly for businesses and consumers, it may even make the planet a more dangerous place.

World trade – Trump style

Before we can understand what has changed, we need to revisit how trade deals have historically been done.

In the decades following World War II, the General Agreement on Tariffs and Trade was the center of gravity for trade negotiations. While that system wasn’t perfect, most of the world’s countries could at least participate, to one degree or another, in hammering out the rules of trade.

This multilateral trading order reached its heyday in 1995, with the creation of the World Trade Organisation. But more recently, the system has weakened. Today, most of the world’s new agreements are struck between only two countries or within a single region.

Trump has shown little appetite for continuing the multilateral negotiations his predecessors were working on. He’s also hammered on regional accords, famously renegotiating the North American Free Trade Agreement and withdrawing from the Trans-Pacific Partnership.

Trump’s clear preference is for bilateral deals where the US can use its market power to force concessions from its negotiating partners. But Trump has added a level of confrontation and antagonism to world trade not known in the postwar era.

For evidence, look no further than his threats to raise tariffs on hundreds of billions of dollars of Chinese goods if a deal falls through.

In essence, the United States under Trump has begun to see itself as the victim, rather than the guarantor, of the liberal trading order. This new perspective has made American negotiators more willing to extract temporary concessions from trading partners, even when these come at the cost of destabilizing the system as a whole.

Rules upon rules

One pernicious consequence of abandoning multilateralism is the mounting complexity and discriminatory nature of global trading arrangements.

In international trade, the fewer rules there are the better. One real benefit of the WTO system is that the same rules, more or less, apply to everyone.

But the world’s increasing rejection of multilateralism is creating a complex web of trade regulations that are tremendously hard to navigate. The number of preferential trade agreements jumped from just over 50 in 1990 to nearly 300 in 2010.

More deals like these mean that one set of rules is overlaid by more rules that only apply when trading with specific countries in certain goods and services. For this reason, the economist Jagdish Bhagwati has called bilateral deals “termites in the trading system.”

These “termites” and the informational burdens they create have real costs for companies and consumers, whether in Europe, Asia or the United States. And this growing complexity weakens competition by giving certain companies an edge over others based on their national origin, distorting the efficiency of global markets.

In the end, these burdens can discourage smaller companies from engaging in global commerce, make it more expensive for even the largest businesses and drive up the cost of products for consumers.

Trade conflicts

A second drawback to Trump’s approach is that it increases the risk of war, at least over the long term.

As the political economist David Lake has pointed out, one purpose of the trading system that the US helped set up after World War II was to forestall mutually antagonistic trading blocs like the ones built by Adolf Hitler or, earlier, by the European and Japanese colonial powers.

The origins of the two world wars may have been principally political, but there is little doubt that economic conflicts between blocs contributed to the military tensions.

During the postwar era, the multilateral system took a major step toward insulating trade from such international disputes and strategic competition. Outside of relations with the communist bloc, which only later participated in multilateral trade deals, there is ample reason to believe that economic interdependence helped produce the “long peace” of that period.

For this reason, we should all be worried about the wobbly state of the global trading system. Bilateral and regional deals are making it easier for large countries to use trade policy more explicitly as an arm of foreign and military policy.

Modern bilateral deals are not recreating the colonial systems of the past, but they do tend to center on major powers in what some scholars have called a “hub” and “spoke” pattern. The “hub” often enjoys significant influence over the “spoke,” and not just in commercial affairs. China’s overtures to African countries over a free trade deal, for example, are likely linked to its strategic interest in securing access to national resources.

While I’m not suggesting that these deals are likely to trigger a shooting war anytime soon, an increasingly fractured world will gradually reduce interdependence among countries – which can act as a strong incentive to avoid a fight.

If the rising number of bilateral deals become an instrument of security policy, and trade increasingly flows only to strategically friendly countries, we should all prepare for more violent conflict in the future. 
 
(Charles Hankla is Associate Professor of Political Science, Georgia State University) 
 
(This article was originally published on The Conversation. Read the <a href="https://theconversation.com/trumps-one-on-one-approach-to-china-has-dangerous-implications-for-global-trade-and-world-peace-116505">original article)</a>

(Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL) 
 
&nbsp;

By Charles Hankla Last week President Donald Trump seemed to be on the cusp of a trade deal with China. A couple of threatening tweets later, the odds of ending the 16-month-old US-China trade war have dropped dramatically.

By Charles Hankla Last week President Donald Trump seemed to be on the cusp of a trade deal with China. A couple of threatening tweets later, the odds of ending the 16-month-old US-China trade war have dropped dramatically. Whether or not American and Chinese trade negotiators ultimately salvage a deal – the US says China backpedaled on a commitment and intends to raise tariffs within days – the episode highlights drawbacks in Trump’s trade strategy, which tends to be protectionist, confrontational and negotiated one on one. Unfortunately, Trump’s policies are only an acceleration of a trend in international trade that’s been going on for several decades. It’s a move away from multilateralism – in which many countries agree on certain trading principles – and toward bilateralism – which pits nation against nation, raising the stakes. I am a specialist in the politics of trade. My observations lead me to believe that the increasing abandonment of multilateralism will have pernicious long-term consequences. Not only will trade become more costly for businesses and consumers, it may even make the planet a more dangerous place. World trade – Trump style Before we can understand what has changed, we need to revisit how trade deals have historically been done. In the decades following World War II, the General Agreement on Tariffs and Trade was the center of gravity for trade negotiations. While that system wasn’t perfect, most of the world’s countries could at least participate, to one degree or another, in hammering out the rules of trade. This multilateral trading order reached its heyday in 1995, with the creation of the World Trade Organisation. But more recently, the system has weakened. Today, most of the world’s new agreements are struck between only two countries or within a single region. Trump has shown little appetite for continuing the multilateral negotiations his predecessors were working on. He’s also hammered on regional accords, famously renegotiating the North American Free Trade Agreement and withdrawing from the Trans-Pacific Partnership. Trump’s clear preference is for bilateral deals where the US can use its market power to force concessions from its negotiating partners. But Trump has added a level of confrontation and antagonism to world trade not known in the postwar era. For evidence, look no further than his threats to raise tariffs on hundreds of billions of dollars of Chinese goods if a deal falls through. In essence, the United States under Trump has begun to see itself as the victim, rather than the guarantor, of the liberal trading order. This new perspective has made American negotiators more willing to extract temporary concessions from trading partners, even when these come at the cost of destabilizing the system as a whole. Rules upon rules One pernicious consequence of abandoning multilateralism is the mounting complexity and discriminatory nature of global trading arrangements. In international trade, the fewer rules there are the better. One real benefit of the WTO system is that the same rules, more or less, apply to everyone. But the world’s increasing rejection of multilateralism is creating a complex web of trade regulations that are tremendously hard to navigate. The number of preferential trade agreements jumped from just over 50 in 1990 to nearly 300 in 2010. More deals like these mean that one set of rules is overlaid by more rules that only apply when trading with specific countries in certain goods and services. For this reason, the economist Jagdish Bhagwati has called bilateral deals “termites in the trading system.” These “termites” and the informational burdens they create have real costs for companies and consumers, whether in Europe, Asia or the United States. And this growing complexity weakens competition by giving certain companies an edge over others based on their national origin, distorting the efficiency of global markets. In the end, these burdens can discourage smaller companies from engaging in global commerce, make it more expensive for even the largest businesses and drive up the cost of products for consumers. Trade conflicts A second drawback to Trump’s approach is that it increases the risk of war, at least over the long term. As the political economist David Lake has pointed out, one purpose of the trading system that the US helped set up after World War II was to forestall mutually antagonistic trading blocs like the ones built by Adolf Hitler or, earlier, by the European and Japanese colonial powers. The origins of the two world wars may have been principally political, but there is little doubt that economic conflicts between blocs contributed to the military tensions. During the postwar era, the multilateral system took a major step toward insulating trade from such international disputes and strategic competition. Outside of relations with the communist bloc, which only later participated in multilateral trade deals, there is ample reason to believe that economic interdependence helped produce the “long peace” of that period. For this reason, we should all be worried about the wobbly state of the global trading system. Bilateral and regional deals are making it easier for large countries to use trade policy more explicitly as an arm of foreign and military policy. Modern bilateral deals are not recreating the colonial systems of the past, but they do tend to center on major powers in what some scholars have called a “hub” and “spoke” pattern. The “hub” often enjoys significant influence over the “spoke,” and not just in commercial affairs. China’s overtures to African countries over a free trade deal, for example, are likely linked to its strategic interest in securing access to national resources. While I’m not suggesting that these deals are likely to trigger a shooting war anytime soon, an increasingly fractured world will gradually reduce interdependence among countries – which can act as a strong incentive to avoid a fight. If the rising number of bilateral deals become an instrument of security policy, and trade increasingly flows only to strategically friendly countries, we should all prepare for more violent conflict in the future. (Charles Hankla is Associate Professor of Political Science, Georgia State University) (This article was originally published on The Conversation. Read the original article) (Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL)

Donald Trump’s one-on-one approach to China has dangerous implications for global trade

US&nbsp;stocks fell on Monday after President Donald Trump pledged to <a href="https://www.wionews.com/world/us-china-reneged-on-trade-commitments-sparking-trump-tariff-hike-216534">raise tariffs on Chinese goods</a>, though Wall Street finished well off its session lows as some investors saw Trump`s comments as a bargaining tactic and expressed confidence in an eventual trade agreement.

But stock futures dropped sharply following the market close after US Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin said China had moved away from commitments made over the course of trade negotiations. S&amp;P e-minis were last down 1.3%.

Also read:&nbsp;<a href="https://www.wionews.com/world/explaining-the-us-china-trade-war-which-grabbed-spotlight-in-2018-185043">Explaining the US-China trade war which grabbed spotlight in 2018</a>

US negotiators are now recommending an increase in tariffs on Chinese goods if a trade agreement is not reached by Friday. Lighthizer said his office would likely post a notice on Tuesday about the planned increase in tariffs on $200 billion worth of Chinese goods to 25% from 10%.

On Sunday, Trump had said an increase in the tariffs would go into effect, reversing a decision he made in February to retain the tariffs at 10% as the United States and China made progress on trade talks.&nbsp;

China said on Monday that a delegation was still preparing to go to the United States, but did not mention if Vice Premier Liu He, its lead official in the negotiations, would be part of the team as originally planned.

Trump`s comments inflamed fears of a slowdown in global growth, which have periodically roiled markets over the past year. The benchmark S&amp;P 500 fell as much as 1.6% during the session while US&nbsp;Treasury yields dropped as investors turned to low-risk government bonds.

Yet the major indexes recovered much of their losses in afternoon trading as some investors remained hopeful that a trade agreement would soon be reached.

"It seems like a negotiating stance," said David Lefkowitz, senior Americas equity strategist at UBS Global Wealth Management`s chief investment office in New York. "Our base case still is that China and the United States do find common ground.

"The probability that there is a negative outcome has probably gone up a little bit, but quantifying that, it`s hard to say," he added.

A rise in healthcare shares helped offset the trade-driven losses. At the Sohn Investment Conference on Monday, Glenview Capital Management Chief Executive Larry Robbins said he favored the sector.

The sector got a further lift as Centene Corp shares rose 6.6% after Reuters reported that two hedge funds have built stakes in the health insurer and are exploring a challenge to its planned acquisition of WellCare Health Plans Inc.

But materials, industrials and technology shares dropped as investors moved away from cyclical and trade-sensitive sectors.

Boeing Co, the single largest US exporter to China, fell 1.3%. Chipmakers, which get a sizable portion of their revenue from China, also tumbled. The Philadelphia chip index slid 1.7%. Apple Inc shares, which have also been sensitive to signs of weakness in China, declined 1.5%.

The Dow Jones Industrial Average fell 66.47 points, or 0.25%, to 26,438.48, the S&amp;P 500 lost 13.17 points, or 0.45%, to 2,932.47 and the Nasdaq Composite dropped 40.71 points, or 0.5%, to 8,123.29.

In a bright spot, Anadarko Petroleum Corp shares rose 3.8% after Occidental Petroleum Corp increased the cash component of its $38 billion bid, removing a need for any deal to receive the approval of Occidental`s shareholders.

Occidental is trying to convince Anadarko to accept its offer and abandon the agreed-upon $33 billion sale to Chevron Corp. Shares of Chevron rose 1.0%.&nbsp;

Declining issues outnumbered advancing ones on the NYSE by a 1.45-to-1 ratio; on Nasdaq, a 1.28-to-1 ratio favored decliners.

The S&amp;P 500 posted 19 new 52-week highs and four new lows; the Nasdaq Composite recorded 69 new highs and 33 new lows.&nbsp;

Volume on US exchanges was 6.45 billion shares, compared to the 6.62 billion average for the full session over the last 20 trading days.

US stocks fell on Monday after President Donald Trump pledged to raise tariffs on Chinese goods, though Wall Street finished well off its session lows as some investors saw Trump`s comments as a bargaining tactic and expressed confidence in an eventual trade agreement.

US stocks fell on Monday after President Donald Trump pledged to raise tariffs on Chinese goods, though Wall Street finished well off its session lows as some investors saw Trump`s comments as a bargaining tactic and expressed confidence in an eventual trade agreement. But stock futures dropped sharply following the market close after US Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin said China had moved away from commitments made over the course of trade negotiations. S&P e-minis were last down 1.3%. Also read: Explaining the US-China trade war which grabbed spotlight in 2018 US negotiators are now recommending an increase in tariffs on Chinese goods if a trade agreement is not reached by Friday. Lighthizer said his office would likely post a notice on Tuesday about the planned increase in tariffs on $200 billion worth of Chinese goods to 25% from 10%. On Sunday, Trump had said an increase in the tariffs would go into effect, reversing a decision he made in February to retain the tariffs at 10% as the United States and China made progress on trade talks. China said on Monday that a delegation was still preparing to go to the United States, but did not mention if Vice Premier Liu He, its lead official in the negotiations, would be part of the team as originally planned. Trump`s comments inflamed fears of a slowdown in global growth, which have periodically roiled markets over the past year. The benchmark S&P 500 fell as much as 1.6% during the session while US Treasury yields dropped as investors turned to low-risk government bonds. Yet the major indexes recovered much of their losses in afternoon trading as some investors remained hopeful that a trade agreement would soon be reached. "It seems like a negotiating stance," said David Lefkowitz, senior Americas equity strategist at UBS Global Wealth Management`s chief investment office in New York. "Our base case still is that China and the United States do find common ground. "The probability that there is a negative outcome has probably gone up a little bit, but quantifying that, it`s hard to say," he added. A rise in healthcare shares helped offset the trade-driven losses. At the Sohn Investment Conference on Monday, Glenview Capital Management Chief Executive Larry Robbins said he favored the sector. The sector got a further lift as Centene Corp shares rose 6.6% after Reuters reported that two hedge funds have built stakes in the health insurer and are exploring a challenge to its planned acquisition of WellCare Health Plans Inc. But materials, industrials and technology shares dropped as investors moved away from cyclical and trade-sensitive sectors. Boeing Co, the single largest US exporter to China, fell 1.3%. Chipmakers, which get a sizable portion of their revenue from China, also tumbled. The Philadelphia chip index slid 1.7%. Apple Inc shares, which have also been sensitive to signs of weakness in China, declined 1.5%. The Dow Jones Industrial Average fell 66.47 points, or 0.25%, to 26,438.48, the S&P 500 lost 13.17 points, or 0.45%, to 2,932.47 and the Nasdaq Composite dropped 40.71 points, or 0.5%, to 8,123.29. In a bright spot, Anadarko Petroleum Corp shares rose 3.8% after Occidental Petroleum Corp increased the cash component of its $38 billion bid, removing a need for any deal to receive the approval of Occidental`s shareholders. Occidental is trying to convince Anadarko to accept its offer and abandon the agreed-upon $33 billion sale to Chevron Corp. Shares of Chevron rose 1.0%. Declining issues outnumbered advancing ones on the NYSE by a 1.45-to-1 ratio; on Nasdaq, a 1.28-to-1 ratio favored decliners. The S&P 500 posted 19 new 52-week highs and four new lows; the Nasdaq Composite recorded 69 new highs and 33 new lows. Volume on US exchanges was 6.45 billion shares, compared to the 6.62 billion average for the full session over the last 20 trading days.

Wall Street falls as White House plans to raise China tariffs

President Donald Trump is due to meet Friday afternoon with China's top trade negotiator, as talks continue to try to defuse the escalation of the tariff war between the world's economic superpowers.

Global stock markets were higher as the two sides continued to project optimism, with Trump's personal involvement a likely signal of the White House's confidence in a successful outcome.

Also read: <a href="http://www.wionews.com/opinions/us-china-trade-talks-free-trade-must-not-be-derailed-198923">US-China trade talks, free trade must not be derailed</a>

Just a week remains to avoid a sharp increase in US duty rates on more than $200 billion in Chinese exports -- though Trump has suggested he could extend this deadline if needed.

The fourth round of talks has been underway all week, with senior officials meeting as of Thursday. The White House said Trump would meet with China's Vice Premier Liu He, who is leading the delegation from Beijing.&nbsp;

China's President Xi Jinping also met with US negotiators last week in Beijing, a sign the two leaders are closely following the high-stakes talks.

Analysts say the two sides are likely to trumpet mutual agreements to resolve the easier parts of the trade dispute -- increasing Chinese purchases of American exports, more open investment in China and tougher protections for intellectual property and companies' proprietary technology.

The harder parts -- structural changes to China's economy including an end to Beijing's massive intervention in markets and scaling back its ambitious industrial strategy for global preeminence -- are another question.

William Reinsch, a former senior Treasury official for trade in the administration of President Bill Clinton, told AFP it was unclear if Trump would seek to force Beijing to make such deep concessions.

'Combined impacts'

"Will he hold out for the whole loaf? I don't think anybody knows whether he'll do that. I don’t know if he knows," said Reinsch.

A risk for Trump, said Reinsch, is whether any agreement holds and the Chinese honour their commitments.

"If it unravels and we have a string of unmet commitments and then US retaliation right before the election, we're kind of right back where we started," he said.

US Trade Representative Robert Lighthizer is leading the US negotiating team, which also includes Treasury Secretary Steven Mnuchin and Commerce Secretary Wilbur Ross.

In a sign of how high the stakes could be, Christine Lagarde, head of the International Monetary Fund, called the US-China trade tensions a "major risk" to global economic growth.

Since July, the countries have hit out with tariffs on more than $360 billion in two-way trade.

By themselves, Lagarde told the US radio broadcast Marketplace, the tariffs are having "minimal" effect on global trade but they are also damaging business confidence and weighing on stock markets.

"So the combined three impacts -- trade, markets, confidence -- actually reduce global growth and certainly explain our downside projection," Lagarde said, referring to the IMF's recent cuts to global growth forecasts.

The two sides are working towards memorandums of understanding to formalize their commitments ahead of a possible meeting between Trump and Xi.

"The big surprise would be a complete removal of tariffs by Trump but I’m expecting an asymmetrical removal of tariffs by China in order to get to some of these numbers," said Gary Clyde Hufbauer, a trade expert at the Peterson Institute for International Economics.

China may have to remove its tariffs in order to increase purchases of US exports while Trump may feel no pressing obligation to lower the tariffs he imposed on Chinese imports last year, he said.

Global stock markets have been battered since last year through the ups and downs of the trade war but have tended to react positively to signs relations at least will not deteriorate further.

Word of progress had Wall Street in a cheerful mood, with the benchmark Dow Jones Industrial Average up 0.6 per cent at 1600 GMT.

President Donald Trump is due to meet Friday afternoon with China's top trade negotiator, as talks continue to try to defuse the escalation of the tariff war between the world's economic superpowers.

President Donald Trump is due to meet Friday afternoon with China's top trade negotiator, as talks continue to try to defuse the escalation of the tariff war between the world's economic superpowers. Global stock markets were higher as the two sides continued to project optimism, with Trump's personal involvement a likely signal of the White House's confidence in a successful outcome. Also read: US-China trade talks, free trade must not be derailed Just a week remains to avoid a sharp increase in US duty rates on more than $200 billion in Chinese exports -- though Trump has suggested he could extend this deadline if needed. The fourth round of talks has been underway all week, with senior officials meeting as of Thursday. The White House said Trump would meet with China's Vice Premier Liu He, who is leading the delegation from Beijing. China's President Xi Jinping also met with US negotiators last week in Beijing, a sign the two leaders are closely following the high-stakes talks. Analysts say the two sides are likely to trumpet mutual agreements to resolve the easier parts of the trade dispute -- increasing Chinese purchases of American exports, more open investment in China and tougher protections for intellectual property and companies' proprietary technology. The harder parts -- structural changes to China's economy including an end to Beijing's massive intervention in markets and scaling back its ambitious industrial strategy for global preeminence -- are another question. William Reinsch, a former senior Treasury official for trade in the administration of President Bill Clinton, told AFP it was unclear if Trump would seek to force Beijing to make such deep concessions. 'Combined impacts' "Will he hold out for the whole loaf? I don't think anybody knows whether he'll do that. I don’t know if he knows," said Reinsch. A risk for Trump, said Reinsch, is whether any agreement holds and the Chinese honour their commitments. "If it unravels and we have a string of unmet commitments and then US retaliation right before the election, we're kind of right back where we started," he said. US Trade Representative Robert Lighthizer is leading the US negotiating team, which also includes Treasury Secretary Steven Mnuchin and Commerce Secretary Wilbur Ross. In a sign of how high the stakes could be, Christine Lagarde, head of the International Monetary Fund, called the US-China trade tensions a "major risk" to global economic growth. Since July, the countries have hit out with tariffs on more than $360 billion in two-way trade. By themselves, Lagarde told the US radio broadcast Marketplace, the tariffs are having "minimal" effect on global trade but they are also damaging business confidence and weighing on stock markets. "So the combined three impacts -- trade, markets, confidence -- actually reduce global growth and certainly explain our downside projection," Lagarde said, referring to the IMF's recent cuts to global growth forecasts. The two sides are working towards memorandums of understanding to formalize their commitments ahead of a possible meeting between Trump and Xi. "The big surprise would be a complete removal of tariffs by Trump but I’m expecting an asymmetrical removal of tariffs by China in order to get to some of these numbers," said Gary Clyde Hufbauer, a trade expert at the Peterson Institute for International Economics. China may have to remove its tariffs in order to increase purchases of US exports while Trump may feel no pressing obligation to lower the tariffs he imposed on Chinese imports last year, he said. Global stock markets have been battered since last year through the ups and downs of the trade war but have tended to react positively to signs relations at least will not deteriorate further. Word of progress had Wall Street in a cheerful mood, with the benchmark Dow Jones Industrial Average up 0.6 per cent at 1600 GMT.

Trump to meet China's top trade negotiator as deadline presses

While there is no such thing as “free trade”, but freer trade, which gained impetus after the second world war has not only raised world output, among other things but raised, also lifted millions out of poverty. Underpinned and promoted by an institutional firmament, especially the World Trade Organisation (WTO), whose precursor was the General Agreement on Trade and Tariffs (GATT),&nbsp;and what has been termed as the “liberal world order”, the freer trade paradigm is under serious threat. This holds despite US president Donald Trump’s assurances that trade talks between the United States and China were going on well and the March 1 deadline for tariffs might be extended.

The backdrop to the threat to freer trade is a mélange of the 2008 financial crisis, the assumption of Donald Trump to the highest office in the United States, with the concomitant rise of protectionism and mercantilism, or in other words, the primacy of the nation-state over a more open trading and even world order. The paradox here is that the United States, which led and pioneered the liberal economic and political world order and whose support for it was essential, benefited from an open economic order but is now retreating from it. The reasons pertain not to economics but to political economy.

While broad benefits accrue from freer trade, but it has both distributional and other economic consequences in terms of both “winners” and “losers”. This has been poignant in the United States where the distributional consequences of freer trade were acutely and intensely felt by those left behind by the gale of trade. The base brought Trump to power who, in his campaign pledges, promised to unwind the trade bargains and pacts and “make America great again(MAGA). In lieu of his pledges, Trump picked a trade fight with China and also attempted to rejigg trade between the United States, Canada and Mexico. The result has been a disruption that might feel good to some, but throws a spanner into the works of freer trade.

This insalubrious development is not only ominous but potentially threatens to roll back the stupendous gains made so far throwing into jeopardy human welfare. The question is: can freer trade be salvaged?&nbsp;

Yes. It can and it will perhaps gyrate to a dynamic of its own.&nbsp;

The reasons accrue from the nature of the 21st-century economy which is both a knowledge and a “gig” economy and the widgets, nuts and bolts one too. Trump’s focus till now has been the relocation of manufacturing to the United States. But, the country’s economy and even the global economy in which it is enmeshed has moved on. Profound and staggering developments in the Information, Communications and Technologies (ICTs), automation, robotics and Artificial Intelligence(AI) mean that the name of the game is different, especially in the developed world. This is not to demean the nuts and bolts economy which is and will remain relevant but it will be a complement to changes elsewhere. It is here that the United States, the world’s largest economy, must focus on instead of adopting a protectionist mercantilist paradigm.&nbsp;

The nature of this approach should be to reorient the country’s educational institutions and skill development in tune with the demands and the needs of the 21st century. A political price might have to made here but from a long duree perspective, it is the adoption of this particular approach that would be more sustainable and yield rewards both to the United States and the world, at large.

But, importantly, an important structural complement to the suggested paradigm, should be the creation of safety nets for those who are likely to be left behind by what is a veritable gale of “creative destruction” in the offing. 
 
Cumulatively, a novel approach toward education, skill development and a safety net could lead to a condition that would be win-win and offset the losses from freer trade. There would also ensue global prosperity which could undercut migratory pressures to both the developed world and the United States, in particular.

In the final analysis, freer trade is a blessing that has proved to be a boon for mankind. It would be a sheer travesty if its momentum is derailed, even if temporarily. What is required,&nbsp;at this delicate point in world history, is far-sighted and deft leadership that is both particular and general.&nbsp;

(Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL.)

While there is no such thing as “free trade”, but freer trade, which gained impetus after the second world war has not only raised world output, among other things but raised, also lifted millions out of poverty.

While there is no such thing as “free trade”, but freer trade, which gained impetus after the second world war has not only raised world output, among other things but raised, also lifted millions out of poverty. Underpinned and promoted by an institutional firmament, especially the World Trade Organisation (WTO), whose precursor was the General Agreement on Trade and Tariffs (GATT), and what has been termed as the “liberal world order”, the freer trade paradigm is under serious threat. This holds despite US president Donald Trump’s assurances that trade talks between the United States and China were going on well and the March 1 deadline for tariffs might be extended. The backdrop to the threat to freer trade is a mélange of the 2008 financial crisis, the assumption of Donald Trump to the highest office in the United States, with the concomitant rise of protectionism and mercantilism, or in other words, the primacy of the nation-state over a more open trading and even world order. The paradox here is that the United States, which led and pioneered the liberal economic and political world order and whose support for it was essential, benefited from an open economic order but is now retreating from it. The reasons pertain not to economics but to political economy. While broad benefits accrue from freer trade, but it has both distributional and other economic consequences in terms of both “winners” and “losers”. This has been poignant in the United States where the distributional consequences of freer trade were acutely and intensely felt by those left behind by the gale of trade. The base brought Trump to power who, in his campaign pledges, promised to unwind the trade bargains and pacts and “make America great again(MAGA). In lieu of his pledges, Trump picked a trade fight with China and also attempted to rejigg trade between the United States, Canada and Mexico. The result has been a disruption that might feel good to some, but throws a spanner into the works of freer trade. This insalubrious development is not only ominous but potentially threatens to roll back the stupendous gains made so far throwing into jeopardy human welfare. The question is: can freer trade be salvaged? Yes. It can and it will perhaps gyrate to a dynamic of its own. The reasons accrue from the nature of the 21st-century economy which is both a knowledge and a “gig” economy and the widgets, nuts and bolts one too. Trump’s focus till now has been the relocation of manufacturing to the United States. But, the country’s economy and even the global economy in which it is enmeshed has moved on. Profound and staggering developments in the Information, Communications and Technologies (ICTs), automation, robotics and Artificial Intelligence(AI) mean that the name of the game is different, especially in the developed world. This is not to demean the nuts and bolts economy which is and will remain relevant but it will be a complement to changes elsewhere. It is here that the United States, the world’s largest economy, must focus on instead of adopting a protectionist mercantilist paradigm. The nature of this approach should be to reorient the country’s educational institutions and skill development in tune with the demands and the needs of the 21st century. A political price might have to made here but from a long duree perspective, it is the adoption of this particular approach that would be more sustainable and yield rewards both to the United States and the world, at large. But, importantly, an important structural complement to the suggested paradigm, should be the creation of safety nets for those who are likely to be left behind by what is a veritable gale of “creative destruction” in the offing. Cumulatively, a novel approach toward education, skill development and a safety net could lead to a condition that would be win-win and offset the losses from freer trade. There would also ensue global prosperity which could undercut migratory pressures to both the developed world and the United States, in particular. In the final analysis, freer trade is a blessing that has proved to be a boon for mankind. It would be a sheer travesty if its momentum is derailed, even if temporarily. What is required, at this delicate point in world history, is far-sighted and deft leadership that is both particular and general. (Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL.)

US-China trade talks: Free trade must not be derailed

President Donald Trump said Friday that trade negotiations with <a href="http://www.wionews.com/world/had-productive-trade-meetings-with-china-us-secretary-mnuchin-197584">China</a> were going "extremely well" and again offered the possibility of extending the March 1 deadline for a sharp rise in punitive tariffs.

Senior officials completed two days of high-stakes talks in Beijing on Friday as they try to avert the US threat to more than double tariffs on $200 billion in Chinese goods, which would be an unwelcome shock to the world's second-largest economy as it already has shown signs of slowing.&nbsp;

"It is going extremely well," Trump said of the talks.&nbsp;

"The tariffs are hurting China very badly. They don't want them and frankly if we can make the deal it would be my honour to remove them," he told reporters at the White House.

The president confirmed his comments earlier this week that he might be willing to hold off on increasing tariffs to 25 per cent from the current 10 per cent, if Washington and Beijing are close to finalizing an agreement to deal with US complaints about unfair trade and theft of American technology.

"There is a possibility that I will extend the date," he told reporters. "If I see we're close to a deal or the deal is going in the right direction, I would do that."

After progress in the talks in Beijing, the fourth round of negotiations is scheduled for next week in Washington.

Trump said he likes tariffs which are bringing "many billions of dollars pouring into our Treasury," but continues to state that China is paying the duties, when in fact they are paid by US companies and ultimately by American consumers in the form of higher prices.

"The tariffs are hurting China very badly. They don't want them and frankly, if we can make the deal it would be my honour to remove them."

'The vibe is good'

Chinese President Xi Jinping hailed the "important step-by-step progress," and said he hoped the two delegations would continue to "work hard" for a "win-win" agreement, according to China's state news agency Xinhua.

Wall Street was cheered by the talks' optimistic tone, with the benchmark Dow Jones Industrial Average up more than 350 points or 1.5 per cent around midday.

American officials accuse Beijing of seeking global industrial predominance through an array of unfair trade practices, including the "theft" of American intellectual property and massive state intervention in commodities markets.

Since a December detente, China has resumed purchases of some US soybeans and dangled massive buying of American commodities to get US trade negotiators closer to a deal.

The talks have included discussion of purchases to reduce the "large and persistent bilateral trade deficit," the White House said in a statement.&nbsp;

But many China experts say Beijing's Communist Party rulers are unlikely to make significant changes to industrial policies without a long and tough fight.

Still, expectations for an accord have been growing as China faces pressure from slowing economic growth.&nbsp;

"We all believe that China-US relations have broad common interests in safeguarding world peace and stability and promoting global economic prosperity and development," Xi told the US negotiators.

US Trade Representative Robert Lighthizer, who led the American delegation, told Xi on Friday that while there was more work to do, they had made progress.

Lighthizer and US Treasury Secretary Steven Mnuchin and met with China's top trade negotiator Liu He, Foreign Minister Wang Yi and central bank chief Yi Gang.&nbsp;

Bloomberg News reported that the White House was considering a 60-day deadline extension, but Trump did not offer any particulars.&nbsp;

Trump's economic advisor Larry Kudlow said of the talks, "the vibe is good" but there was no decision yet on extending the 90-day tariff truce.

The two sides last year exchanged tariffs on more than $360 billion in two-way trade.

China's politically sensitive trade surplus with the US last year hit a record $323 billion as tariffs kept Chinese buyers away from American agricultural and energy exports.

Trump has said that any eventual trade deal would need to be sealed personally with Xi, though no date has been set for a meeting.

President Donald Trump said Friday that trade negotiations with China were going "extremely well" and again offered the possibility of extending the March 1 deadline for a sharp rise in punitive tariffs.

President Donald Trump said Friday that trade negotiations with China were going "extremely well" and again offered the possibility of extending the March 1 deadline for a sharp rise in punitive tariffs. Senior officials completed two days of high-stakes talks in Beijing on Friday as they try to avert the US threat to more than double tariffs on $200 billion in Chinese goods, which would be an unwelcome shock to the world's second-largest economy as it already has shown signs of slowing. "It is going extremely well," Trump said of the talks. "The tariffs are hurting China very badly. They don't want them and frankly if we can make the deal it would be my honour to remove them," he told reporters at the White House. The president confirmed his comments earlier this week that he might be willing to hold off on increasing tariffs to 25 per cent from the current 10 per cent, if Washington and Beijing are close to finalizing an agreement to deal with US complaints about unfair trade and theft of American technology. "There is a possibility that I will extend the date," he told reporters. "If I see we're close to a deal or the deal is going in the right direction, I would do that." After progress in the talks in Beijing, the fourth round of negotiations is scheduled for next week in Washington. Trump said he likes tariffs which are bringing "many billions of dollars pouring into our Treasury," but continues to state that China is paying the duties, when in fact they are paid by US companies and ultimately by American consumers in the form of higher prices. "The tariffs are hurting China very badly. They don't want them and frankly, if we can make the deal it would be my honour to remove them." 'The vibe is good' Chinese President Xi Jinping hailed the "important step-by-step progress," and said he hoped the two delegations would continue to "work hard" for a "win-win" agreement, according to China's state news agency Xinhua. Wall Street was cheered by the talks' optimistic tone, with the benchmark Dow Jones Industrial Average up more than 350 points or 1.5 per cent around midday. American officials accuse Beijing of seeking global industrial predominance through an array of unfair trade practices, including the "theft" of American intellectual property and massive state intervention in commodities markets. Since a December detente, China has resumed purchases of some US soybeans and dangled massive buying of American commodities to get US trade negotiators closer to a deal. The talks have included discussion of purchases to reduce the "large and persistent bilateral trade deficit," the White House said in a statement. But many China experts say Beijing's Communist Party rulers are unlikely to make significant changes to industrial policies without a long and tough fight. Still, expectations for an accord have been growing as China faces pressure from slowing economic growth. "We all believe that China-US relations have broad common interests in safeguarding world peace and stability and promoting global economic prosperity and development," Xi told the US negotiators. US Trade Representative Robert Lighthizer, who led the American delegation, told Xi on Friday that while there was more work to do, they had made progress. Lighthizer and US Treasury Secretary Steven Mnuchin and met with China's top trade negotiator Liu He, Foreign Minister Wang Yi and central bank chief Yi Gang. Bloomberg News reported that the White House was considering a 60-day deadline extension, but Trump did not offer any particulars. Trump's economic advisor Larry Kudlow said of the talks, "the vibe is good" but there was no decision yet on extending the 90-day tariff truce. The two sides last year exchanged tariffs on more than $360 billion in two-way trade. China's politically sensitive trade surplus with the US last year hit a record $323 billion as tariffs kept Chinese buyers away from American agricultural and energy exports. Trump has said that any eventual trade deal would need to be sealed personally with Xi, though no date has been set for a meeting.

Trump says could extend March 1 China tariff 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.

&nbsp;

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 and Chinese negotiators kicked off two days of high-level trade talks in Beijing on Thursday hoping to resolve a festering dispute that has cast a shadow over financial markets and the global growth outlook.

Pressure to seal an accord ahead of a March 1 deadline set by <a href="http://www.wionews.com/world/trump-says-confident-in-us-trade-deal-with-china-188332">Donald Trump</a> appears to have eased slightly after the US president indicated he was open to extending a trade truce depending on progress in Beijing.

Trump in December postponed plans to sharply hike tariffs on $200 billion of Chinese imports to allow more time for negotiation.

The two economic superpowers have already imposed duties on more than $360 billion in <a href="http://www.wionews.com/business-economy/china-us-trade-tension-a-major-risk-to-global-growth-imf-chief-192497">two-way trade</a>, which has weighed on their manufacturing sectors and shaken global financial markets.

US Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin are meeting with China's top economic czar Liu He, seeking to build on progress made in Washington last month.

We are "looking forward to discussions today," Mnuchin said as he left his hotel Thursday morning for the talks.

Expectations for a trade deal have grown as China faces pressure from slowing economic growth, and as swooning global markets rattle Trump and his economic advisors.

Chinese President Xi Jinping plans to meet with the US officials in Beijing this week, a report in the South China Morning Post said Wednesday, bolstering hopes for the talks and markets in Asia.&nbsp;

Trump also has said he expects to meet with Xi "at some point" to clinch a trade deal.

Trump told reporters in the Oval Office on Wednesday that preliminary talks in Beijing were "going along very well," Bloomberg reported.

"They're showing us tremendous respect," he added.

"Markets will continue to watch — and react — closely to the ups and downs of the negotiations," said Trey McArver of Trivium Research.

"But Sino-US relations are all about the two leaders, and it will ultimately be up to Xi and Trump to come to a deal — or not," he wrote Wednesday in a newsletter.

The two sides said major progress was made in talks last month in Washington, but a wide gulf remains on some issues.

The US is demanding far-reaching changes to Chinese practices that it says are unfair, including theft of US technology and intellectual property, and myriad barriers that foreign companies face in the Chinese domestic market.

Beijing has offered to boost its purchases of US goods but is widely expected to resist calls for major changes to its industrial policies such as slashing government subsidies.

The International Monetary Fund warned on Sunday of a possible global economic "storm" as world growth forecasts dip, citing the US-China trade row as a key pivot point. 
&nbsp;

US and Chinese negotiators kicked off two days of high-level trade talks in Beijing on Thursday hoping to resolve a festering dispute that has cast a shadow over financial markets and the global growth outlook.

US and Chinese negotiators kicked off two days of high-level trade talks in Beijing on Thursday hoping to resolve a festering dispute that has cast a shadow over financial markets and the global growth outlook. Pressure to seal an accord ahead of a March 1 deadline set by Donald Trump appears to have eased slightly after the US president indicated he was open to extending a trade truce depending on progress in Beijing. Trump in December postponed plans to sharply hike tariffs on $200 billion of Chinese imports to allow more time for negotiation. The two economic superpowers have already imposed duties on more than $360 billion in two-way trade, which has weighed on their manufacturing sectors and shaken global financial markets. US Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin are meeting with China's top economic czar Liu He, seeking to build on progress made in Washington last month. We are "looking forward to discussions today," Mnuchin said as he left his hotel Thursday morning for the talks. Expectations for a trade deal have grown as China faces pressure from slowing economic growth, and as swooning global markets rattle Trump and his economic advisors. Chinese President Xi Jinping plans to meet with the US officials in Beijing this week, a report in the South China Morning Post said Wednesday, bolstering hopes for the talks and markets in Asia. Trump also has said he expects to meet with Xi "at some point" to clinch a trade deal. Trump told reporters in the Oval Office on Wednesday that preliminary talks in Beijing were "going along very well," Bloomberg reported. "They're showing us tremendous respect," he added. "Markets will continue to watch — and react — closely to the ups and downs of the negotiations," said Trey McArver of Trivium Research. "But Sino-US relations are all about the two leaders, and it will ultimately be up to Xi and Trump to come to a deal — or not," he wrote Wednesday in a newsletter. The two sides said major progress was made in talks last month in Washington, but a wide gulf remains on some issues. The US is demanding far-reaching changes to Chinese practices that it says are unfair, including theft of US technology and intellectual property, and myriad barriers that foreign companies face in the Chinese domestic market. Beijing has offered to boost its purchases of US goods but is widely expected to resist calls for major changes to its industrial policies such as slashing government subsidies. The International Monetary Fund warned on Sunday of a possible global economic "storm" as world growth forecasts dip, citing the US-China trade row as a key pivot point.

US, China open trade talks in Beijing as deadline looms

High level US trade negotiators in Beijing will meet with Chinese President Xi Jinping, a top White House official confirmed Thursday.

President Donald Trump's economic advisor Larry Kudlow told reporters in Washington that he'd just talked to the delegation, which includes US Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin.

"They're covering all the ground. They're hard at it. They are going to meet with President Xi, so that's a very good sign," he said.

Kudlow said "the vibe is good."

But he said there'd been "no decision" on extending a March 1 truce in tariff hikes between the world's two main economic powers.

Earlier, the South China Morning Post reported that the US officials would meet with Xi, bolstering hopes for a successful outcome in the talks.

Trump has said he is open to extending the March 1 deadline to give time for more negotiations and he says he will meet with Xi to finalise any deal.

The United States accuses China of a slew of unfair trading practices, including systemic theft of US intellectual property, and wants deep reforms to the system.

Beijing and Washington have already imposed duties on more than $360 billion in two-way trade, weighing on their manufacturing sectors and shaking global financial markets.

High level US trade negotiators in Beijing will meet with Chinese President Xi Jinping, a top White House official confirmed Thursday. President Donald Trump's economic advisor Larry Kudlow told reporters in Washington that he'd just talked to the delegation, which includes US Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin.

High level US trade negotiators in Beijing will meet with Chinese President Xi Jinping, a top White House official confirmed Thursday. President Donald Trump's economic advisor Larry Kudlow told reporters in Washington that he'd just talked to the delegation, which includes US Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin. "They're covering all the ground. They're hard at it. They are going to meet with President Xi, so that's a very good sign," he said. Kudlow said "the vibe is good." But he said there'd been "no decision" on extending a March 1 truce in tariff hikes between the world's two main economic powers. Earlier, the South China Morning Post reported that the US officials would meet with Xi, bolstering hopes for a successful outcome in the talks. Trump has said he is open to extending the March 1 deadline to give time for more negotiations and he says he will meet with Xi to finalise any deal. The United States accuses China of a slew of unfair trading practices, including systemic theft of US intellectual property, and wants deep reforms to the system. Beijing and Washington have already imposed duties on more than $360 billion in two-way trade, weighing on their manufacturing sectors and shaking global financial markets.

US trade negotiators to meet with Chinese President Xi Jinping: White House

Two US warships sailed near islands claimed by <a href="http://www.wionews.com/world/china-calls-us-warship-in-south-china-sea-a-provocation-188818">China in the South China Sea </a>on Monday, a US official told Reuters, a move likely to anger Beijing at a time of tense relations between the world's two biggest economies.

Beijing and Washington are locked in a trade war and the two sides are trying to hammer out a deal ahead of a March 1 deadline when US tariffs on $200 billion worth of Chinese imports are scheduled to increase to 25 per cent from 10 per cent.

Escalating tensions between the United States and China have cost both countries billions of dollars and roiled global financial markets.

The official, speaking on condition of anonymity, said the <a href="http://www.wionews.com/world/naval-destroyer-sailed-through-south-china-sea-to-ensure-freedom-of-navigation-us-188742">two guided-missile destroyers</a> travelled within 12 nautical miles of Mischief Reef in the disputed Spratly Islands.

The operation was the latest attempt to counter what Washington sees as Beijing's efforts to limit freedom of navigation in the strategic waters, where Chinese, Japanese and some Southeast Asian navies operate.

China claims almost all of the strategic South China Sea and frequently lambastes the United States and its allies over naval operations near Chinese-occupied islands.

China and the United States have repeatedly traded barbs in the past over what Washington says is Beijing’s militarisation of the South China Sea by building military installations on artificial islands and reefs.

China defends its construction as necessary for self-defence and says it is the United States that is responsible for ratcheting up tensions in the region by sending warships and military planes close to islands Beijing claims.

Vietnam, the Philippines, Brunei, Malaysia, Indonesia and Taiwan have competing claims in the region.

Fears have grown in recent months that the US-China trade dispute is just one element in a bilateral relationship that is fast cooling across the board, with top US administration officials sharply criticising Beijing for everything from human rights abuses to cyber espionage in the United States.

The two countries are also at odds over regional security, including Washington’s overtures to the self-ruled island of Taiwan, which China claims as its own. 
&nbsp;

Two US warships sailed near islands claimed by China in the South China Sea on Monday, a US official told Reuters, a move likely to anger Beijing at a time of tense relations between the world's two biggest economies.

Two US warships sailed near islands claimed by China in the South China Sea on Monday, a US official told Reuters, a move likely to anger Beijing at a time of tense relations between the world's two biggest economies. Beijing and Washington are locked in a trade war and the two sides are trying to hammer out a deal ahead of a March 1 deadline when US tariffs on $200 billion worth of Chinese imports are scheduled to increase to 25 per cent from 10 per cent. Escalating tensions between the United States and China have cost both countries billions of dollars and roiled global financial markets. The official, speaking on condition of anonymity, said the two guided-missile destroyers travelled within 12 nautical miles of Mischief Reef in the disputed Spratly Islands. The operation was the latest attempt to counter what Washington sees as Beijing's efforts to limit freedom of navigation in the strategic waters, where Chinese, Japanese and some Southeast Asian navies operate. China claims almost all of the strategic South China Sea and frequently lambastes the United States and its allies over naval operations near Chinese-occupied islands. China and the United States have repeatedly traded barbs in the past over what Washington says is Beijing’s militarisation of the South China Sea by building military installations on artificial islands and reefs. China defends its construction as necessary for self-defence and says it is the United States that is responsible for ratcheting up tensions in the region by sending warships and military planes close to islands Beijing claims. Vietnam, the Philippines, Brunei, Malaysia, Indonesia and Taiwan have competing claims in the region. Fears have grown in recent months that the US-China trade dispute is just one element in a bilateral relationship that is fast cooling across the board, with top US administration officials sharply criticising Beijing for everything from human rights abuses to cyber espionage in the United States. The two countries are also at odds over regional security, including Washington’s overtures to the self-ruled island of Taiwan, which China claims as its own.

US guided missile destroyers sail near disputed islands in South China Sea amid tensions with China

<a href="http://www.wionews.com/business-economy/gold-rises-as-us-government-shutdown-deepens-global-growth-concerns-192633">Gold prices</a> held firm on Monday, supported by worries over a slowdown in global economic growth and uncertainties around Sino-US trade war, but a strong dollar limited the safe-haven metal's appeal.

Spot gold was marginally lower at $1,312.76 per ounce, as of 0254 GMT, while US gold futures fell 0.2 per cent to $1,316.50 per ounce.

"Global growth worries, the absence of positive signs in US-China trade (talks) and reduction in the euro-zone growth forecasts have laid a strong foundation for gold in the longer run," said Benjamin Lu, an analyst with Singapore-based Phillip Futures.

"There are a lot of headwinds for gold in the near-term from the six-week rally in US equities and a vigorous dollar."

Investors are looking ahead to trade talks between Beijing and Washington this week with a delegation of US officials travelling to China for the next round of negotiations. US President Donald Trump said last week that he had no plans to meet with Chinese President Xi Jinping before a March 1 deadline to achieve a trade deal.

Trump has vowed to increase US tariffs on $200 billion worth of Chinese imports if the two sides cannot reach a deal by 12:01 a.m. (0501 GMT) on March 2.

Trade tensions between the world's top two economies have rattled financial markets since last year and also boosted the appeal of the US dollar as a safe-haven.

The dollar index was hovering near a more than one-month high touched in the previous session.

A stronger greenback makes dollar-denominated gold more expensive for holders of other currencies.

Gold slumped to a more than 1-1/2-year low in mid-August to $1,159.96 on rising interest rates and a strong dollar. But, tumultuous stock markets and expectations of a pause in interest rate hikes this year helped gold touch a nine-month high at $1,326.30 in late January.

Tighter financial conditions since last September make further interest rate hikes seem much less necessary than just a few months ago, San Francisco Federal Reserve Bank President Mary Daly said on Friday.

While gold is supported by the Fed's dovish policy, prices will likely remain range-bound until there is clarity on the trade front and US government shutdown, OANDA analyst Edward Moya said in a note.

SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, saw outflows for five straight sessions last week.

Talks on border security funding collapsed after Democratic and Republican lawmakers clashed over immigrant detention policy as they worked to avert another US government shutdown.

Meanwhile, palladium fell 0.5 per cent to $1,395 an ounce.

Spot silver dropped 0.2 per cent to $15.79, while platinum was down 0.5 perc ent at $794.

Gold prices held firm on Monday, supported by worries over a slowdown in global economic growth and uncertainties around Sino-US trade war, but a strong dollar limited the safe-haven metal's appeal.

Gold prices held firm on Monday, supported by worries over a slowdown in global economic growth and uncertainties around Sino-US trade war, but a strong dollar limited the safe-haven metal's appeal. Spot gold was marginally lower at $1,312.76 per ounce, as of 0254 GMT, while US gold futures fell 0.2 per cent to $1,316.50 per ounce. "Global growth worries, the absence of positive signs in US-China trade (talks) and reduction in the euro-zone growth forecasts have laid a strong foundation for gold in the longer run," said Benjamin Lu, an analyst with Singapore-based Phillip Futures. "There are a lot of headwinds for gold in the near-term from the six-week rally in US equities and a vigorous dollar." Investors are looking ahead to trade talks between Beijing and Washington this week with a delegation of US officials travelling to China for the next round of negotiations. US President Donald Trump said last week that he had no plans to meet with Chinese President Xi Jinping before a March 1 deadline to achieve a trade deal. Trump has vowed to increase US tariffs on $200 billion worth of Chinese imports if the two sides cannot reach a deal by 12:01 a.m. (0501 GMT) on March 2. Trade tensions between the world's top two economies have rattled financial markets since last year and also boosted the appeal of the US dollar as a safe-haven. The dollar index was hovering near a more than one-month high touched in the previous session. A stronger greenback makes dollar-denominated gold more expensive for holders of other currencies. Gold slumped to a more than 1-1/2-year low in mid-August to $1,159.96 on rising interest rates and a strong dollar. But, tumultuous stock markets and expectations of a pause in interest rate hikes this year helped gold touch a nine-month high at $1,326.30 in late January. Tighter financial conditions since last September make further interest rate hikes seem much less necessary than just a few months ago, San Francisco Federal Reserve Bank President Mary Daly said on Friday. While gold is supported by the Fed's dovish policy, prices will likely remain range-bound until there is clarity on the trade front and US government shutdown, OANDA analyst Edward Moya said in a note. SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, saw outflows for five straight sessions last week. Talks on border security funding collapsed after Democratic and Republican lawmakers clashed over immigrant detention policy as they worked to avert another US government shutdown. Meanwhile, palladium fell 0.5 per cent to $1,395 an ounce. Spot silver dropped 0.2 per cent to $15.79, while platinum was down 0.5 perc ent at $794.

Gold holds steady on global growth concerns; trade talks in focus

Asian markets mostly rose Friday, with investors treading carefully as <a href="http://www.wionews.com/world/us-china-trade-talks-begin-amid-deep-differences-193945">China-US trade talks</a> ended with no deal but with both sides sounding notes of optimism and setting up more high-level meetings later this month.

After the much-anticipated gathering, Donald Trump hailed "tremendous progress" between the world's top two economies but warned the "hard deadline" of March 1 remained in place, after which US tariffs on billions of dollars of Chinese goods will be imposed.

For its part, Beijing said they held "candid, specific and fruitful" discussions and had agreed to increase cooperation on intellectual property — a major source of White House anger with China — and boost imports of US goods.

Trump's top two economic officials will visit Beijing later this month, after which he said he will meet his counterpart Xi Jinping to hammer out the final deal.

While the negotiations ended with no agreement, Jeffrey Halley, senior market analyst at OANDA, said: "For the markets, which are clearly in 'risk-on' mood, it was a case of no news is good news."

However, an early surge across the region petered out to leave markets mixed.

Tokyo ended 0.1 per cent higher and Hong Kong was marginally lower, while Shanghai jumped 1.3 per cent as traders welcomed news that authorities had relaxed certain rules to make investing easier.

Sydney and Singapore were both flat and Seoul dipped 0.1 per cent, though Manila, Mumbai, Bangkok and Jakarta were all up.

In early trade, London rose 0.3 per cent, while Frankfurt and Paris each added 0.2 per cent.

"The statement certainly signals progress, but at best-limited progress on the core long-term structural issues that separate the two sides," Eswar Prasad, a trade policy professor at Cornell University, told Bloomberg News.

"The statement ends with a not-so-veiled threat that China will need to offer more substantive concessions to enable a deal that would take further tariffs off the table."

The tepid movement in markets also comes after an impressive month that saw Hong Kong pile on more than eight per cent and Tokyo more than four per cent, a much-needed bounce after December's hammering.

Next on the agenda is the release of US jobs data later Friday, which comes days after the Federal Reserve fueled a rally by signalling a slowdown in its pace of interest rate hikes this year.

The non-farm payrolls figures will be closely watched for an idea about the state of the world's number-one economy, with the Fed having warned of a global slowdown.

Asian markets mostly rose Friday, with investors treading carefully as China-US trade talks ended with no deal but with both sides sounding notes of optimism and setting up more high-level meetings later this month.

Asian markets mostly rose Friday, with investors treading carefully as China-US trade talks ended with no deal but with both sides sounding notes of optimism and setting up more high-level meetings later this month. After the much-anticipated gathering, Donald Trump hailed "tremendous progress" between the world's top two economies but warned the "hard deadline" of March 1 remained in place, after which US tariffs on billions of dollars of Chinese goods will be imposed. For its part, Beijing said they held "candid, specific and fruitful" discussions and had agreed to increase cooperation on intellectual property — a major source of White House anger with China — and boost imports of US goods. Trump's top two economic officials will visit Beijing later this month, after which he said he will meet his counterpart Xi Jinping to hammer out the final deal. While the negotiations ended with no agreement, Jeffrey Halley, senior market analyst at OANDA, said: "For the markets, which are clearly in 'risk-on' mood, it was a case of no news is good news." However, an early surge across the region petered out to leave markets mixed. Tokyo ended 0.1 per cent higher and Hong Kong was marginally lower, while Shanghai jumped 1.3 per cent as traders welcomed news that authorities had relaxed certain rules to make investing easier. Sydney and Singapore were both flat and Seoul dipped 0.1 per cent, though Manila, Mumbai, Bangkok and Jakarta were all up. In early trade, London rose 0.3 per cent, while Frankfurt and Paris each added 0.2 per cent. "The statement certainly signals progress, but at best-limited progress on the core long-term structural issues that separate the two sides," Eswar Prasad, a trade policy professor at Cornell University, told Bloomberg News. "The statement ends with a not-so-veiled threat that China will need to offer more substantive concessions to enable a deal that would take further tariffs off the table." The tepid movement in markets also comes after an impressive month that saw Hong Kong pile on more than eight per cent and Tokyo more than four per cent, a much-needed bounce after December's hammering. Next on the agenda is the release of US jobs data later Friday, which comes days after the Federal Reserve fueled a rally by signalling a slowdown in its pace of interest rate hikes this year. The non-farm payrolls figures will be closely watched for an idea about the state of the world's number-one economy, with the Fed having warned of a global slowdown.

Asian markets mixed as China, US agree to further trade talks

Gold prices edged higher on Friday amid concerns that a prolonged <a href="https://www.google.com/url?q=http://www.wionews.com/world/we-cant-pay-informants-fbi-on-us-government-shutdown-192096&amp;sa=U&amp;ved=0ahUKEwim7JrvjojgAhVKv48KHSO-DdkQFggFMAA&amp;client=internal-uds-cse&amp;cx=006054055338965708568:09spwrlibei&amp;usg=AOvVaw0dRzgZiX_rSxNlQ65tbxBd">US government shutdown </a>could exacerbate an already slowing global growth, while markets awaited US-China trade talks scheduled for next week.

Spot gold rose 0.2 per cent at $1,282.50 per ounce, as of 0343 GMT, while US gold futures were steady at $1,281.40 per ounce.

Investors are worried about the economic impact of the longest US government shutdown in history, now in its 34th day, with two bills to end the partial shutdown failing to win enough votes in the Senate.

"There are some positive features supporting gold like the US government shutdown, ongoing trade war and potential for slower rate hikes," said John Sharma, an economist with National Australia Bank.

"At the moment, people are waiting for the US-China trade discussions," Sharma said, adding that any development on that front could provide a direction for gold.

The United States and China are "miles and miles" from resolving trade issues, but there is a fair chance the two countries will get a deal, US Commerce Secretary Wilbur Ross said on Thursday.

Concerns about slowing global economy and hopes that the US Federal Reserve will pause its multi-year rate hike cycle are supporting gold, analysts said.

A synchronised global economic slowdown is underway and any escalation in the <a href="https://www.google.com/url?q=http://www.wionews.com/business-economy/imf-cuts-global-forecast-due-to-us-china-trade-tensions-191841&amp;sa=U&amp;ved=0ahUKEwibjvXajojgAhUYaI8KHZdKDtoQFggFMAA&amp;client=internal-uds-cse&amp;cx=006054055338965708568:09spwrlibei&amp;usg=AOvVaw1P8ubV5EDxGkjQi6PzMCZS">US-China trade</a> war would trigger a sharper downturn, according to the latest Reuters polls of hundreds of economists from around the world.

"We expect that a topping out of US real yields will put a firmer floor under gold prices this year and Fed's hiking cycle to peter out in 2019," said Sabrin Chowdhury, commodities analyst at Fitch Solutions.

"Global risk-aversion will rise in 2019 and flows into safe-haven assets, including gold, are likely to pick up."

Meanwhile, the dollar index, which measures the greenback against a basket of currencies, fell 0.2 per cent, after a report that Northern Ireland's Democratic Unionist Party has privately decided to offer conditional backing for Prime Minister Theresa May's Brexit deal next week.&nbsp;

A softer dollar makes gold less expensive for holders of other currencies.

Technically, spot gold has found support at $1,278 per ounce, and it may hover above this level or bounce towards resistance at $1,289, according to Reuters analyst Wang Tao.

Among other metals, palladium, which hit a record high of $1,434.50 an ounce last week on low inventories and rising demand, was steady at $1,320 on Friday.

It registered its biggest intraday percentage decline since December 21, falling 2 per cent to $1,313.50 on Thursday. The metal also was heading for its first weekly fall in five weeks.

Silver was up 0.3 per cent at $15.35 per ounce while platinum gained 0.3 per cent to $803.

Gold prices edged higher on Friday amid concerns that a prolonged US government shutdown could exacerbate an already slowing global growth, while markets awaited US-China trade talks scheduled for next week.

Gold prices edged higher on Friday amid concerns that a prolonged US government shutdown could exacerbate an already slowing global growth, while markets awaited US-China trade talks scheduled for next week. Spot gold rose 0.2 per cent at $1,282.50 per ounce, as of 0343 GMT, while US gold futures were steady at $1,281.40 per ounce. Investors are worried about the economic impact of the longest US government shutdown in history, now in its 34th day, with two bills to end the partial shutdown failing to win enough votes in the Senate. "There are some positive features supporting gold like the US government shutdown, ongoing trade war and potential for slower rate hikes," said John Sharma, an economist with National Australia Bank. "At the moment, people are waiting for the US-China trade discussions," Sharma said, adding that any development on that front could provide a direction for gold. The United States and China are "miles and miles" from resolving trade issues, but there is a fair chance the two countries will get a deal, US Commerce Secretary Wilbur Ross said on Thursday. Concerns about slowing global economy and hopes that the US Federal Reserve will pause its multi-year rate hike cycle are supporting gold, analysts said. A synchronised global economic slowdown is underway and any escalation in the US-China trade war would trigger a sharper downturn, according to the latest Reuters polls of hundreds of economists from around the world. "We expect that a topping out of US real yields will put a firmer floor under gold prices this year and Fed's hiking cycle to peter out in 2019," said Sabrin Chowdhury, commodities analyst at Fitch Solutions. "Global risk-aversion will rise in 2019 and flows into safe-haven assets, including gold, are likely to pick up." Meanwhile, the dollar index, which measures the greenback against a basket of currencies, fell 0.2 per cent, after a report that Northern Ireland's Democratic Unionist Party has privately decided to offer conditional backing for Prime Minister Theresa May's Brexit deal next week. A softer dollar makes gold less expensive for holders of other currencies. Technically, spot gold has found support at $1,278 per ounce, and it may hover above this level or bounce towards resistance at $1,289, according to Reuters analyst Wang Tao. Among other metals, palladium, which hit a record high of $1,434.50 an ounce last week on low inventories and rising demand, was steady at $1,320 on Friday. It registered its biggest intraday percentage decline since December 21, falling 2 per cent to $1,313.50 on Thursday. The metal also was heading for its first weekly fall in five weeks. Silver was up 0.3 per cent at $15.35 per ounce while platinum gained 0.3 per cent to $803.

Gold rises as US government shutdown deepens global growth concerns

Asian stocks rose across the board on Friday, buoyed by gains in US technology shares while investors awaited several key events next week including US-China trade talks.

The euro struggled near a six-week low versus the dollar following dovish-sounding comments from European Central Bank President Mario Draghi, who expressed concerns about the eurozone economy.

MSCI's broadest index of Asia-Pacific shares outside Japan gained 0.95 per cent to scale its highest since December 4.

The index was headed for a gain of 0.6 per cent this week, with strong corporate earnings helping somewhat to counter growing concerns over slowing global economic growth.

The Shanghai Composite Index rose 0.6 per cent.

Tech-heavy South Korean shares added 0.9 per cent. Australian stocks climbed 0.8 per cent, lifted by higher prices of commodities such as iron ore and crude oil.

Japan's Nikkei advanced 1.4 per cent with technology companies boosted by a surge in their US peers.

"Investors who were already excited about the U.S. chip sector's earnings the day before got even more reassured after they saw how their stocks moved," said Shogo Maekawa, a global market strategist at JPMorgan Asset Management.

Maekawa added that a recovery in the global cyclical chip sector is taken as a silver-lining amid concerns about a global economic slowdown.

A synchronised global economic slowdown is underway and any escalation in the US-China trade war would trigger a sharper downturn, according to the latest Reuters polls of hundreds of economists from around the world.

"Equities may be drawing some support but the markets are bracing for next week's events," said Masahiro Ichikawa, senior strategist at Sumitomo Mitsui Asset Management.

"The US-China trade discussions will provide insight into how talks are progressing, while the British parliamentary voting is a key Brexit event. And there is also the FOMC (Federal Open Market Committee) meeting."

Chinese Vice Premier Liu He will visit the United States on January 30 and 31 for the next round of trade negotiations with Washington.

The two sides are "miles and miles" from resolving trade issues but there is a fair chance they will get a deal, US Commerce Secretary Wilbur Ross said on Thursday.

The British parliament will debate and vote on Prime Minister Theresa May's Brexit "plan B" on January 29, and the US Federal Reserve concludes a two-day policy setting meeting on January 30.

The Nasdaq had risen roughly 0.7 per cent on Thursday thanks to a rally by chipmakers, while the S&amp;P 500 edged higher and the Dow closed nominally lower as anxiety about slowing global growth and the Sino-U.S. trade dispute undercut a spate of strong earnings.

In currency markets, the euro was a shade firmer at $1.1316 but still in close reach of a six-week trough of $1.1289 plumbed overnight. The euro was down 0.4 per cent this week.

The single currency slid after ECB President Draghi acknowledged on Thursday that economic growth in the euro zone was likely to be weaker than earlier expected due to the fall-out from factors ranging from China's slowdown to Brexit.

Germany has dropped its economic growth forecast for 2019 to 1.0 per cent from 1.8 per cent due to slower global economic growth and uncertainty about Britain's exit from the European Union, the Handelsblatt newspaper reported on Thursday.

The ECB had left its policy stance unchanged as expected on Thursday and Draghi's downbeat comments added to speculation that the central bank will hold back on interest rate hikes that some market watchers had expected in October.

The pound was up 0.4 per cent at $1.3109 after brushing a two-month high of $1.3130, lifted after The Sun reported on Thursday that Northern Ireland's Democratic Unionist Party has privately decided to back Prime Minister May's Brexit deal next week if it includes a clear time limit to the Irish backstop.

The dollar nudged up 0.1 per cent to 109.74 yen and on track to end the week little changed.

The benchmark 10-year US Treasury note yield was slightly higher at 2.724 per cent after dropping to a one-week low as concerns over slowing global growth supported safe-haven government debt.

Crude oil extended gains after rallying the previous day as the United States threatened sanctions on Venezuela's crude exports as the country descended further into political and economic turmoil.

US crude oil futures were up 1.3 per cent at $53.82 per barrel after gaining 1 per cent on Thursday.

Asian stocks rose across the board on Friday, buoyed by gains in US technology shares while investors awaited several key events next week including US-China trade talks.

Asian stocks rose across the board on Friday, buoyed by gains in US technology shares while investors awaited several key events next week including US-China trade talks. The euro struggled near a six-week low versus the dollar following dovish-sounding comments from European Central Bank President Mario Draghi, who expressed concerns about the eurozone economy. MSCI's broadest index of Asia-Pacific shares outside Japan gained 0.95 per cent to scale its highest since December 4. The index was headed for a gain of 0.6 per cent this week, with strong corporate earnings helping somewhat to counter growing concerns over slowing global economic growth. The Shanghai Composite Index rose 0.6 per cent. Tech-heavy South Korean shares added 0.9 per cent. Australian stocks climbed 0.8 per cent, lifted by higher prices of commodities such as iron ore and crude oil. Japan's Nikkei advanced 1.4 per cent with technology companies boosted by a surge in their US peers. "Investors who were already excited about the U.S. chip sector's earnings the day before got even more reassured after they saw how their stocks moved," said Shogo Maekawa, a global market strategist at JPMorgan Asset Management. Maekawa added that a recovery in the global cyclical chip sector is taken as a silver-lining amid concerns about a global economic slowdown. A synchronised global economic slowdown is underway and any escalation in the US-China trade war would trigger a sharper downturn, according to the latest Reuters polls of hundreds of economists from around the world. "Equities may be drawing some support but the markets are bracing for next week's events," said Masahiro Ichikawa, senior strategist at Sumitomo Mitsui Asset Management. "The US-China trade discussions will provide insight into how talks are progressing, while the British parliamentary voting is a key Brexit event. And there is also the FOMC (Federal Open Market Committee) meeting." Chinese Vice Premier Liu He will visit the United States on January 30 and 31 for the next round of trade negotiations with Washington. The two sides are "miles and miles" from resolving trade issues but there is a fair chance they will get a deal, US Commerce Secretary Wilbur Ross said on Thursday. The British parliament will debate and vote on Prime Minister Theresa May's Brexit "plan B" on January 29, and the US Federal Reserve concludes a two-day policy setting meeting on January 30. The Nasdaq had risen roughly 0.7 per cent on Thursday thanks to a rally by chipmakers, while the S&P 500 edged higher and the Dow closed nominally lower as anxiety about slowing global growth and the Sino-U.S. trade dispute undercut a spate of strong earnings. In currency markets, the euro was a shade firmer at $1.1316 but still in close reach of a six-week trough of $1.1289 plumbed overnight. The euro was down 0.4 per cent this week. The single currency slid after ECB President Draghi acknowledged on Thursday that economic growth in the euro zone was likely to be weaker than earlier expected due to the fall-out from factors ranging from China's slowdown to Brexit. Germany has dropped its economic growth forecast for 2019 to 1.0 per cent from 1.8 per cent due to slower global economic growth and uncertainty about Britain's exit from the European Union, the Handelsblatt newspaper reported on Thursday. The ECB had left its policy stance unchanged as expected on Thursday and Draghi's downbeat comments added to speculation that the central bank will hold back on interest rate hikes that some market watchers had expected in October. The pound was up 0.4 per cent at $1.3109 after brushing a two-month high of $1.3130, lifted after The Sun reported on Thursday that Northern Ireland's Democratic Unionist Party has privately decided to back Prime Minister May's Brexit deal next week if it includes a clear time limit to the Irish backstop. The dollar nudged up 0.1 per cent to 109.74 yen and on track to end the week little changed. The benchmark 10-year US Treasury note yield was slightly higher at 2.724 per cent after dropping to a one-week low as concerns over slowing global growth supported safe-haven government debt. Crude oil extended gains after rallying the previous day as the United States threatened sanctions on Venezuela's crude exports as the country descended further into political and economic turmoil. US crude oil futures were up 1.3 per cent at $53.82 per barrel after gaining 1 per cent on Thursday.

Asia stocks firm, euro sags after dovish ECB

<a href="http://www.wionews.com/world/house-speaker-pelosi-says-trump-cannot-give-state-of-union-speech-until-he-ends-govt-shutdown-192338">US President Donald Trump</a> said Wednesday that Washington is doing "very well" in trade talks with China and that Beijing is keen to strike a deal ending their trade war.

China "wants to make a deal," he said at the White House. "We're doing very well in the negotiations."

Data showing China's economy grew at its weakest pace in three decades have fuelled fears it is heading for a rocky patch, exacerbated by the pressure from US tariffs.&nbsp;

Trump argues that China has skewed the trading rules for decades and must agree to substantial reductions in import barriers, while boosting protection for US intellectual property.

However, the tit-for-tat tariffs between the world's two main economic powers have also hurt US economic confidence and markets are waiting anxiously for a deal.

On Wednesday, Chinese Vice President Wang Qishan told an audience at the World Economic Forum in Davos that "the Chinese and US economies are mutually indispensable, so their relations must be mutually beneficial and win-win."&nbsp;

US President Donald Trump said Wednesday that Washington is doing "very well" in trade talks with China and that Beijing is keen to strike a deal ending their trade war.

US President Donald Trump said Wednesday that Washington is doing "very well" in trade talks with China and that Beijing is keen to strike a deal ending their trade war. China "wants to make a deal," he said at the White House. "We're doing very well in the negotiations." Data showing China's economy grew at its weakest pace in three decades have fuelled fears it is heading for a rocky patch, exacerbated by the pressure from US tariffs. Trump argues that China has skewed the trading rules for decades and must agree to substantial reductions in import barriers, while boosting protection for US intellectual property. However, the tit-for-tat tariffs between the world's two main economic powers have also hurt US economic confidence and markets are waiting anxiously for a deal. On Wednesday, Chinese Vice President Wang Qishan told an audience at the World Economic Forum in Davos that "the Chinese and US economies are mutually indispensable, so their relations must be mutually beneficial and win-win."

US doing 'very well' in China trade talks: Trump

Asian stocks advanced on Friday as a report of progress in US-China trade talks stirred hopes of a deal in their tariff dispute and supported risk sentiment.

The Wall Street Journal reported on Thursday that US Treasury Secretary Steven Mnuchin discussed lifting some or all tariffs imposed on Chinese imports and suggested offering a tariff rollback during trade discussions scheduled for January 30.

US stocks rallied following the report, but pared some of those gains after a Treasury spokesperson told CNBC that Mnuchin had not made any such recommendations. WSJ also reported that US Trade Representative Robert Lighthizer has resisted Mnuchin`s idea. For the day, all three major US indexes were up, led by a surge in industrial stocks.&nbsp;

Even the whiff of progress in the months-long Sino-U.S. trade war helped boost risk sentiment. MSCI`s broadest index of Asia-Pacific shares outside Japan added 0.7 per cent. The index has gained 1.4 per cent this week.

The Shanghai Composite Index was up 0.8 per cent.

Australian stocks rose 0.5 per cent, as did South Korea`s KOSPI while Japan`s Nikkei gained more than 1 per cent to a one-month high.

"As with 2018, the U.S.-China trade row remains a key market theme in 2019. A slight difference is that there are some signs that the two sides are seeking some sort of a resolution," said Soichiro Monji, senior economist at Daiwa SB Investments in Tokyo.

"China seems to be running low on options, while the United States would also want to avoid a prolonged conflict given the negative consequences on its markets and the economy," Monji said.

Chinese Vice Premier Liu He will visit the United States on January 30 and 31 for the latest round of trade talks aimed at resolving the dispute between the world`s two largest economies.

In December, Washington and Beijing agreed to a 90-day truce in a trade war that has disrupted the flow of hundreds of billions of dollars of goods.

Indicators released recently have shown signs that the Chinese economy is losing some momentum.

China`s fourth-quarter economic growth, due to be reported on Monday, likely slowed to the weakest pace since the global financial crisis, a Reuters poll showed, as demand faltered at home and abroad.

The dollar was mildly supported after US Treasury yields rose amid the improvement in risk appetite in the broader markets.

The greenback was a shade higher at 109.320 yen after popping up to a two-week high of 109.40 overnight. The dollar has gained about 0.7 per cent against the Japanese currency this week.

The euro was little changed at $1.1393 after dipping slightly overnight. The common currency was on track for a weekly loss of 0.7 per cent.

The 10-year Treasury yield stood at 2.750 per cent after going brushing 2.761 per cent the previous day, its highest in three weeks.

The pound traded at $1.2978, hovering close to a two-month peak of $1.3001 scaled overnight on the back of hopes that Britain can avoid a no-deal Brexit.

British Prime Minister Theresa May`s Brexit deal suffered a heavy defeat in parliament this week but she survived a subsequent vote of confidence, removing some political uncertainty for now.

US crude oil futures extended gains after rising the previous day on a bounce in Wall Street and news that OPEC sharply curtailed production in December.&nbsp;

US crude futures added 1 per cent to $52.61 per barrel. The contracts have gained more than 2 per cent this week.

Brent crude was up 0.8 per cent at $61.67 per barrel and on track to gain 2 per cent on the week.

Elsewhere in commodities, palladium was 0.6 per cent higher at $1,403.50 an ounce after rising to an all-time high of $1,434.50 overnight.

Demand has recently outstripped supply for the metal, used in emissions-reducing catalytic converters for cars. Palladium also appeared to get a boost from hopes for further government stimulus in China, the world`s biggest auto market.&nbsp;

Spot gold was steady at $1,291.56 an ounce, having relinquished its spot as the most expensive precious metal to palladium early in December.

Asian stocks advanced on Friday as a report of progress in US-China trade talks stirred hopes of a deal in their tariff dispute and supported risk sentiment. The Wall Street Journal reported on Thursday that US Treasury Secretary Steven Mnuchin discussed lifting some or all tariffs imposed on Chinese imports and suggested offering a tariff rollback during trade discussions scheduled for January 30.

Asian stocks advanced on Friday as a report of progress in US-China trade talks stirred hopes of a deal in their tariff dispute and supported risk sentiment. The Wall Street Journal reported on Thursday that US Treasury Secretary Steven Mnuchin discussed lifting some or all tariffs imposed on Chinese imports and suggested offering a tariff rollback during trade discussions scheduled for January 30. US stocks rallied following the report, but pared some of those gains after a Treasury spokesperson told CNBC that Mnuchin had not made any such recommendations. WSJ also reported that US Trade Representative Robert Lighthizer has resisted Mnuchin`s idea. For the day, all three major US indexes were up, led by a surge in industrial stocks. Even the whiff of progress in the months-long Sino-U.S. trade war helped boost risk sentiment. MSCI`s broadest index of Asia-Pacific shares outside Japan added 0.7 per cent. The index has gained 1.4 per cent this week. The Shanghai Composite Index was up 0.8 per cent. Australian stocks rose 0.5 per cent, as did South Korea`s KOSPI while Japan`s Nikkei gained more than 1 per cent to a one-month high. "As with 2018, the U.S.-China trade row remains a key market theme in 2019. A slight difference is that there are some signs that the two sides are seeking some sort of a resolution," said Soichiro Monji, senior economist at Daiwa SB Investments in Tokyo. "China seems to be running low on options, while the United States would also want to avoid a prolonged conflict given the negative consequences on its markets and the economy," Monji said. Chinese Vice Premier Liu He will visit the United States on January 30 and 31 for the latest round of trade talks aimed at resolving the dispute between the world`s two largest economies. In December, Washington and Beijing agreed to a 90-day truce in a trade war that has disrupted the flow of hundreds of billions of dollars of goods. Indicators released recently have shown signs that the Chinese economy is losing some momentum. China`s fourth-quarter economic growth, due to be reported on Monday, likely slowed to the weakest pace since the global financial crisis, a Reuters poll showed, as demand faltered at home and abroad. The dollar was mildly supported after US Treasury yields rose amid the improvement in risk appetite in the broader markets. The greenback was a shade higher at 109.320 yen after popping up to a two-week high of 109.40 overnight. The dollar has gained about 0.7 per cent against the Japanese currency this week. The euro was little changed at $1.1393 after dipping slightly overnight. The common currency was on track for a weekly loss of 0.7 per cent. The 10-year Treasury yield stood at 2.750 per cent after going brushing 2.761 per cent the previous day, its highest in three weeks. The pound traded at $1.2978, hovering close to a two-month peak of $1.3001 scaled overnight on the back of hopes that Britain can avoid a no-deal Brexit. British Prime Minister Theresa May`s Brexit deal suffered a heavy defeat in parliament this week but she survived a subsequent vote of confidence, removing some political uncertainty for now. US crude oil futures extended gains after rising the previous day on a bounce in Wall Street and news that OPEC sharply curtailed production in December. US crude futures added 1 per cent to $52.61 per barrel. The contracts have gained more than 2 per cent this week. Brent crude was up 0.8 per cent at $61.67 per barrel and on track to gain 2 per cent on the week. Elsewhere in commodities, palladium was 0.6 per cent higher at $1,403.50 an ounce after rising to an all-time high of $1,434.50 overnight. Demand has recently outstripped supply for the metal, used in emissions-reducing catalytic converters for cars. Palladium also appeared to get a boost from hopes for further government stimulus in China, the world`s biggest auto market. Spot gold was steady at $1,291.56 an ounce, having relinquished its spot as the most expensive precious metal to palladium early in December.

Global Markets: Asia stocks advance on US-China trade relief

By Christopher Dent

The clock is ticking for China and the US to resolve their trade dispute. Some progress was made at the last round of talks (January 7-9) but negotiators must find a comprehensive agreement by March 2.&nbsp;

If they fail, the US government plans to raise tariffs from 10 per cent to 25 per cent on $200 billion of Chinese imports. This would have an enormous impact not just on US-China bilateral trade but also on many other countries due to global supply chain linkages.

The US president, Donald Trump, wishes to adjust the “terms of trade” between both countries, addressing what he alleges are China’s “unfair” trading practices. Many observers believe this is a battle not just about trade but also about economic and technological supremacy.

The Trump administration accuses China of stealing technology from American companies. It has also been critical of the Chinese government’s strategic plans to make the country a world leader in industry sectors such as aerospace, renewable energy, robotics and electric vehicles. The recent successful landing of a Chinese spacecraft on the Moon would have caused further consternation among Americans fearful of China’s new technological capacities.

The US says it wants China to become a free market economy and ditch its state management approach. Ironically, the credibility of America’s position on this matter is undermined by Trump’s own protectionist stance on trade, which itself constitutes significant state intervention in the marketplace.

But, despite their political and economic differences, the reality is that the US and China’s economies are deeply interconnected through various layers of commercial, financial and production links. The two are so entwined that they have been dubbed a symbiotic “Chimerica” economy.

Economic interdependence

US-China economic interdependence has to be carefully managed and many companies are critical of the Trump administration’s decision to raise tariffs. They rightly warn that aggressive US actions against China will ultimately harm American firms, workers and consumers. What’s more, the world’s two largest national economies lie at the core of an ever more integrated global economy. Any significant disruption to their relationship will have major ramifications for businesses worldwide.

From his actions and tweeted thinking to date, it appears that Trump is failing to acknowledge the extent of US-China economic interdependence, or is choosing to ignore it. While the US trade deficit of $336 billion with China in 2017 is at some level a cause for concern, China recycles much of its surplus back through buying US government securities.

Taking the car industry as an example, we can reasonably assume that Trump wishes to see more cars made by Ford, General Motors and other American firms in the US, which get sold both at home and in foreign markets. Ideally, in Trump’s view, they would also be sourcing materials and parts from US-based companies, thus overall generating more jobs and prosperity for Americans. But this cannot be sustainably achieved through protectionist trade measures.

Trump’s adoption of a defensive economic nationalist position and a simplistic “imports bad, exports good” mindset chimes with a 19th-century view of the world economy. Then it was the norm for companies to organise production in one nation and simply export from it. Today, technological advances mean companies increasingly organise their production across nations, mainly for reasons of cost efficiency, making goods cheaper to buy and providing wider consumer choice. In many of the world’s major industries, it makes no economic sense today to do otherwise.

Competitive advantage

For companies, the ultimate arbiter of success is the consumer. The fundamental reason why the sales of American car manufacturers have fallen over the years – both at home and in export markets – is not due to “unfair” trade practices but because they lack competitiveness. The same logic applies to other industries.

Sales of foreign cars in Japan illustrates this. While the Japanese car market is hard for foreign firms to penetrate, Japan does not apply import tariffs in this sector. So both European and US firms face the same challenges in satisfying the discerning Japanese consumer.

From 2013 to 2016, Japan’s imports of US cars fell from 23,381 to 19,933, whereas imports of European vehicles increased from 239,090 to 251,155. If Trump wishes American car makers to expand production and exports, they need to produce more competitive and desirable products.

Sometimes, this is extraordinarily difficult to achieve in industries experiencing deep structural decline, such as the US steel sector. There are, of course, many other sectors where American firms have developed a competitive advantage over their foreign rivals, such as cinema and television shows, popular culture, financial services and university education.

Higher tariffs on US imports of goods from China and other countries will in most cases be passed on as higher prices to American consumers, raising inflation and, in turn, interest rates. One of the ironies of imposing import tariffs on goods from China is that a high volume of these will come from US companies such as Apple and Dell, which assemble their products cost competitively in China, then export them to US consumers. Trump calls for these firms to relocate their production back to the US, but comparatively much higher labour and other costs would lead to higher prices for consumers and inflation.

It is time for the US president to end his short-sighted and self-harming trade policies, and fully appreciate the inter-connected nature of the 21st-century global economy and society. The future health of the global economy depends on a good working partnership between the US and China. Both countries must quickly end this trade war and focus instead on establishing more harmonious relations – for all our sakes.

(Christopher Dent is Senior Lecturer, Edge Hill University)

(This article was originally published on The Conversation. Read the <a href="https://theconversation.com/why-there-will-be-no-winners-from-the-us-china-trade-war-109822">original article</a>)

(Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL)

&nbsp;

By Christopher Dent The clock is ticking for China and the US to resolve their trade dispute. Some progress was made at the last round of talks (January 7-9) but negotiators must find a comprehensive agreement by March 2.

By Christopher Dent The clock is ticking for China and the US to resolve their trade dispute. Some progress was made at the last round of talks (January 7-9) but negotiators must find a comprehensive agreement by March 2. If they fail, the US government plans to raise tariffs from 10 per cent to 25 per cent on $200 billion of Chinese imports. This would have an enormous impact not just on US-China bilateral trade but also on many other countries due to global supply chain linkages. The US president, Donald Trump, wishes to adjust the “terms of trade” between both countries, addressing what he alleges are China’s “unfair” trading practices. Many observers believe this is a battle not just about trade but also about economic and technological supremacy. The Trump administration accuses China of stealing technology from American companies. It has also been critical of the Chinese government’s strategic plans to make the country a world leader in industry sectors such as aerospace, renewable energy, robotics and electric vehicles. The recent successful landing of a Chinese spacecraft on the Moon would have caused further consternation among Americans fearful of China’s new technological capacities. The US says it wants China to become a free market economy and ditch its state management approach. Ironically, the credibility of America’s position on this matter is undermined by Trump’s own protectionist stance on trade, which itself constitutes significant state intervention in the marketplace. But, despite their political and economic differences, the reality is that the US and China’s economies are deeply interconnected through various layers of commercial, financial and production links. The two are so entwined that they have been dubbed a symbiotic “Chimerica” economy. Economic interdependence US-China economic interdependence has to be carefully managed and many companies are critical of the Trump administration’s decision to raise tariffs. They rightly warn that aggressive US actions against China will ultimately harm American firms, workers and consumers. What’s more, the world’s two largest national economies lie at the core of an ever more integrated global economy. Any significant disruption to their relationship will have major ramifications for businesses worldwide. From his actions and tweeted thinking to date, it appears that Trump is failing to acknowledge the extent of US-China economic interdependence, or is choosing to ignore it. While the US trade deficit of $336 billion with China in 2017 is at some level a cause for concern, China recycles much of its surplus back through buying US government securities. Taking the car industry as an example, we can reasonably assume that Trump wishes to see more cars made by Ford, General Motors and other American firms in the US, which get sold both at home and in foreign markets. Ideally, in Trump’s view, they would also be sourcing materials and parts from US-based companies, thus overall generating more jobs and prosperity for Americans. But this cannot be sustainably achieved through protectionist trade measures. Trump’s adoption of a defensive economic nationalist position and a simplistic “imports bad, exports good” mindset chimes with a 19th-century view of the world economy. Then it was the norm for companies to organise production in one nation and simply export from it. Today, technological advances mean companies increasingly organise their production across nations, mainly for reasons of cost efficiency, making goods cheaper to buy and providing wider consumer choice. In many of the world’s major industries, it makes no economic sense today to do otherwise. Competitive advantage For companies, the ultimate arbiter of success is the consumer. The fundamental reason why the sales of American car manufacturers have fallen over the years – both at home and in export markets – is not due to “unfair” trade practices but because they lack competitiveness. The same logic applies to other industries. Sales of foreign cars in Japan illustrates this. While the Japanese car market is hard for foreign firms to penetrate, Japan does not apply import tariffs in this sector. So both European and US firms face the same challenges in satisfying the discerning Japanese consumer. From 2013 to 2016, Japan’s imports of US cars fell from 23,381 to 19,933, whereas imports of European vehicles increased from 239,090 to 251,155. If Trump wishes American car makers to expand production and exports, they need to produce more competitive and desirable products. Sometimes, this is extraordinarily difficult to achieve in industries experiencing deep structural decline, such as the US steel sector. There are, of course, many other sectors where American firms have developed a competitive advantage over their foreign rivals, such as cinema and television shows, popular culture, financial services and university education. Higher tariffs on US imports of goods from China and other countries will in most cases be passed on as higher prices to American consumers, raising inflation and, in turn, interest rates. One of the ironies of imposing import tariffs on goods from China is that a high volume of these will come from US companies such as Apple and Dell, which assemble their products cost competitively in China, then export them to US consumers. Trump calls for these firms to relocate their production back to the US, but comparatively much higher labour and other costs would lead to higher prices for consumers and inflation. It is time for the US president to end his short-sighted and self-harming trade policies, and fully appreciate the inter-connected nature of the 21st-century global economy and society. The future health of the global economy depends on a good working partnership between the US and China. Both countries must quickly end this trade war and focus instead on establishing more harmonious relations – for all our sakes. (Christopher Dent is Senior Lecturer, Edge Hill University) (This article was originally published on The Conversation. Read the original article) (Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL)

Why there will be no winners from the US-China trade war

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