Asian shares pulled ahead on Wednesday while rising Treasury yields lifted the dollar as investors waited anxiously to hear if the world's most powerful central banker would confirm or confound expectations for US easing this month.

MSCI's broadest index of <a href="https://www.wionews.com/business-economy/asian-shares-fall-as-bets-off-on-sharp-us-rate-cuts-233889">Asia-Pacific shares</a> outside Japan advanced 0.4 per cent,&nbsp;after three sessions of losses.

South Korea edged up 0.4%, but Japan's Nikkei lagged with a loss of 0.1 per cent&nbsp;E-Mini futures for the S&amp;P 500 were flat, while EURO STOXX and FTSE futures pointed to small opening gains in Europe.

Chinese blue chips barely budged as data showed inflation remained stubbornly subdued despite a spike in pork prices.

A worrying lack of inflation globally is one reason investors are counting on Federal Reserve Chair Jerome Powell to sound suitably dovish when testifying to Congress on Wednesday.

Futures are still fully priced for a 25-basis-point cut at the Fed's July 30-31 meeting but have abandoned wagers on a half-point move. They had implied a 25% probability of an aggressive cut before Friday's upbeat jobs report.

"We still think the odds favour a 25 bps 'insurance' cut," said Kevin Cummins, a senior US economist at NatWest Markets.

"The Fed's consideration of rate cuts is not only about growth but also about inflation, which remains well below target, and inflation expectations, which were breaking to the downside before the Fed signalled the likelihood of cuts."

Overnight, Atlanta Fed bank president Raphael Bostic let nothing out of the bag by saying the central bank was debating the risks and benefits of letting the US economy run "a little hotter."

Lurking in the background, the US and Chinese trade officials held "constructive" talks on trade by phone on Tuesday, White House economic adviser Larry Kudlow said.

Wall Street had been duly circumspect on Tuesday, with the Dow ending down 0.08%, while the S&amp;P 500 added 0.12% and the Nasdaq 0.54%.

A little More Yield

The cooling in US rate fever has seen bonds give back just a little of their huge rally, with yields on two-year Treasuries rising to 1.917% from the recent trough of 1.696%.

That, in turn, has helped the dollar bounce on a basket of currencies to 97.500 from a June low of 95.843.

The dollar also firmed to 108.90 yen, while the euro faded to $1.1206 having been as high as $1.1412 just a couple of weeks ago.

The Mexican peso was nursing a few bruises after sliding on Tuesday when the country's moderate Finance Minister Carlos Urzua suddenly resigned, citing "extremism" in economic policy.

The Canadian dollar was on the defensive ahead of a rate meeting by the Bank of Canada in case policymakers tried to slow the currency's recent rally.

The dollar's gains took the shine off gold, which eased 0.3 per cent to $1,393.68 per ounce.

Oil prices were supported by Middle East tensions and news that US stockpiles fell for a fourth week in a row, easing concerns about oversupply.

Brent crude futures rose 64 cents to $64.80, while US crude gained 82 cents to $58.65 a barrel.

Asian shares pulled ahead on Wednesday while rising Treasury yields lifted the dollar as investors waited anxiously to hear if the world's most powerful central banker would confirm or confound expectations for US easing this month.

Asian shares pulled ahead on Wednesday while rising Treasury yields lifted the dollar as investors waited anxiously to hear if the world's most powerful central banker would confirm or confound expectations for US easing this month. MSCI's broadest index of Asia-Pacific shares outside Japan advanced 0.4 per cent, after three sessions of losses. South Korea edged up 0.4%, but Japan's Nikkei lagged with a loss of 0.1 per cent E-Mini futures for the S&P 500 were flat, while EURO STOXX and FTSE futures pointed to small opening gains in Europe. Chinese blue chips barely budged as data showed inflation remained stubbornly subdued despite a spike in pork prices. A worrying lack of inflation globally is one reason investors are counting on Federal Reserve Chair Jerome Powell to sound suitably dovish when testifying to Congress on Wednesday. Futures are still fully priced for a 25-basis-point cut at the Fed's July 30-31 meeting but have abandoned wagers on a half-point move. They had implied a 25% probability of an aggressive cut before Friday's upbeat jobs report. "We still think the odds favour a 25 bps 'insurance' cut," said Kevin Cummins, a senior US economist at NatWest Markets. "The Fed's consideration of rate cuts is not only about growth but also about inflation, which remains well below target, and inflation expectations, which were breaking to the downside before the Fed signalled the likelihood of cuts." Overnight, Atlanta Fed bank president Raphael Bostic let nothing out of the bag by saying the central bank was debating the risks and benefits of letting the US economy run "a little hotter." Lurking in the background, the US and Chinese trade officials held "constructive" talks on trade by phone on Tuesday, White House economic adviser Larry Kudlow said. Wall Street had been duly circumspect on Tuesday, with the Dow ending down 0.08%, while the S&P 500 added 0.12% and the Nasdaq 0.54%. A little More Yield The cooling in US rate fever has seen bonds give back just a little of their huge rally, with yields on two-year Treasuries rising to 1.917% from the recent trough of 1.696%. That, in turn, has helped the dollar bounce on a basket of currencies to 97.500 from a June low of 95.843. The dollar also firmed to 108.90 yen, while the euro faded to $1.1206 having been as high as $1.1412 just a couple of weeks ago. The Mexican peso was nursing a few bruises after sliding on Tuesday when the country's moderate Finance Minister Carlos Urzua suddenly resigned, citing "extremism" in economic policy. The Canadian dollar was on the defensive ahead of a rate meeting by the Bank of Canada in case policymakers tried to slow the currency's recent rally. The dollar's gains took the shine off gold, which eased 0.3 per cent to $1,393.68 per ounce. Oil prices were supported by Middle East tensions and news that US stockpiles fell for a fourth week in a row, easing concerns about oversupply. Brent crude futures rose 64 cents to $64.80, while US crude gained 82 cents to $58.65 a barrel.

Asia shares rise as US dollar moves up

<a href="https://www.wionews.com/business-economy/china-continues-to-be-key-driver-of-global-economy-experts-205273">China's economic growth</a> is expected to slow to a near 30-year low of 6.2 per cent this year, a Reuters poll showed on Wednesday, despite a flurry of support measures to spur domestic demand amid a bruising trade war with the United States.

The median forecast was unchanged from the last poll in April.

But a stream of downbeat data in recent months and higher <a href="https://www.wionews.com/world/china-says-us-tariffs-must-be-lifted-to-reach-a-deal-to-end-trade-war-232996">US tariffs</a> have fanned expectations that Beijing will need to roll out more stimulus soon to ward off a sharper slowdown that could stoke job losses.

Second-quarter growth was seen cooling to 6.2 per cent from a year earlier, the same as in the previous poll, from 6.4 per cent in the first quarter. <a href="https://www.wionews.com/world/sale-of-weapons-to-taiwan-violates-one-china-policy-cancel-it-immediately-china-to-us-234236">China</a> will post its second-quarter gross domestic product (GDP) on July 15.

Most of the 72 institutions covered in the survey expect growth will remain at 6.2 per cent for the rest of this year, compared with expectations for a tick-up to 6.3 per cent in the previous poll.

Zhang Yiping, the senior economist at Merchants Securities in Shenzhen, said he expected the US tariff hike in May on $200 billion of Chinese goods to weigh on growth in the second half.

But Zhang said authorities are likely to stick to more moderate policy easing, rather than resorting to more aggressive measures.

"We expect policy this year would focus more on building a floor to underpin the economy, rather than to boost growth," he said.

So far, China's stimulus measures have been more restrained than in past downturns, which analysts attribute to fears of adding to a mountain of debt left over from past credit binges.

But the central bank governor reportedly said last month that there is "tremendous" room to adjust policy if the trade war worsens.

The full-year forecast would be nearing the lower end of the government's 2019 target range of 6-6.5 per cent, and would mark the weakest pace of growth China has seen in 29 years.

It would also spell a further deceleration from 6.6 per cent in 2018 and 6.8 per cent in 2017.

Growth next year will likely cool further to 6.0 per cent, the poll showed.

Trade Uncertainty&nbsp;

Beijing has been relying on a combination of fiscal stimulus and monetary easing to weather the current slowdown, including hundreds of billions of dollars in infrastructure spending and tax cuts for companies.

But the economy has been slow to respond, and investors fear a longer and costlier trade war between the world's two largest economies could trigger a global recession.

US President Donald Trump told counterpart Xi Jinping late last month that he is putting threatened additional levies on hold as they agreed to get trade negotiations back on track.

But Washington sharply raised tariffs on $200 billion of goods from China in May, which remain in force, and no timeframe was set for the talks.

"Trade frictions would remain in the long run despite the truce reached last month. We expect the standoff to morph into more forms such as a tech war, to put further strain on China's economy," Zhang added.

Capital Economics believes China's fiscal policy will become even more supportive, which would be most likely achieved by relaxing constraints on off-budget borrowing.

"We now expect our estimates of the augmented fiscal deficit, which includes off-budget borrowing, to widen in the coming quarters and average 8 per cent of GDP this year, up from 6.4 per cent in 2018."

The government has announced a rise in its budget deficit to 2.8 per cent of GDP this year from 2.6 per cent in 2018.

More Measures Expected

Analysts in the latest Reuters poll expect the People's Bank of China (PBOC) will ease policy further this year.

But they do not expect it to cut its benchmark lending rate, as it repeatedly did in past downturns.

Separately, some other China watchers have recently raised the possibility of cut in the PBOC's benchmark or one of its short-term rates if the US central bank starts easing policy as soon as this month.

The PBOC has slashed banks' reserve requirement ratio (RRR) six times since early 2018 to turn around soft credit growth. It has also injected large amounts of liquidity into the financial system and guided short-term interest rates lower.

Analysts forecast two more RRR cuts of 50 basis points each in this quarter and the last quarter.

Economists expect the central bank to keep its benchmark rate unchanged at 4.35 percent through at least the end of 2020.

The poll also predicted annual consumer inflation will pick up to 2.3 per cent in 2019, quickening from 2.1 per cent estimate in the April survey, but below the government target of around 3 per cent.

Data this week showed China's producer prices stalled in June while consumer price growth reached a 15-month high as supply shortages triggered by the African swine fever outbreak and extreme weather continued to push up pork and fruit prices.

China's economic growth is expected to slow to a near 30-year low of 6.2 per cent this year, a Reuters poll showed on Wednesday, despite a flurry of support measures to spur domestic demand amid a bruising trade war with the United States.

China's economic growth is expected to slow to a near 30-year low of 6.2 per cent this year, a Reuters poll showed on Wednesday, despite a flurry of support measures to spur domestic demand amid a bruising trade war with the United States. The median forecast was unchanged from the last poll in April. But a stream of downbeat data in recent months and higher US tariffs have fanned expectations that Beijing will need to roll out more stimulus soon to ward off a sharper slowdown that could stoke job losses. Second-quarter growth was seen cooling to 6.2 per cent from a year earlier, the same as in the previous poll, from 6.4 per cent in the first quarter. China will post its second-quarter gross domestic product (GDP) on July 15. Most of the 72 institutions covered in the survey expect growth will remain at 6.2 per cent for the rest of this year, compared with expectations for a tick-up to 6.3 per cent in the previous poll. Zhang Yiping, the senior economist at Merchants Securities in Shenzhen, said he expected the US tariff hike in May on $200 billion of Chinese goods to weigh on growth in the second half. But Zhang said authorities are likely to stick to more moderate policy easing, rather than resorting to more aggressive measures. "We expect policy this year would focus more on building a floor to underpin the economy, rather than to boost growth," he said. So far, China's stimulus measures have been more restrained than in past downturns, which analysts attribute to fears of adding to a mountain of debt left over from past credit binges. But the central bank governor reportedly said last month that there is "tremendous" room to adjust policy if the trade war worsens. The full-year forecast would be nearing the lower end of the government's 2019 target range of 6-6.5 per cent, and would mark the weakest pace of growth China has seen in 29 years. It would also spell a further deceleration from 6.6 per cent in 2018 and 6.8 per cent in 2017. Growth next year will likely cool further to 6.0 per cent, the poll showed. Trade Uncertainty Beijing has been relying on a combination of fiscal stimulus and monetary easing to weather the current slowdown, including hundreds of billions of dollars in infrastructure spending and tax cuts for companies. But the economy has been slow to respond, and investors fear a longer and costlier trade war between the world's two largest economies could trigger a global recession. US President Donald Trump told counterpart Xi Jinping late last month that he is putting threatened additional levies on hold as they agreed to get trade negotiations back on track. But Washington sharply raised tariffs on $200 billion of goods from China in May, which remain in force, and no timeframe was set for the talks. "Trade frictions would remain in the long run despite the truce reached last month. We expect the standoff to morph into more forms such as a tech war, to put further strain on China's economy," Zhang added. Capital Economics believes China's fiscal policy will become even more supportive, which would be most likely achieved by relaxing constraints on off-budget borrowing. "We now expect our estimates of the augmented fiscal deficit, which includes off-budget borrowing, to widen in the coming quarters and average 8 per cent of GDP this year, up from 6.4 per cent in 2018." The government has announced a rise in its budget deficit to 2.8 per cent of GDP this year from 2.6 per cent in 2018. More Measures Expected Analysts in the latest Reuters poll expect the People's Bank of China (PBOC) will ease policy further this year. But they do not expect it to cut its benchmark lending rate, as it repeatedly did in past downturns. Separately, some other China watchers have recently raised the possibility of cut in the PBOC's benchmark or one of its short-term rates if the US central bank starts easing policy as soon as this month. The PBOC has slashed banks' reserve requirement ratio (RRR) six times since early 2018 to turn around soft credit growth. It has also injected large amounts of liquidity into the financial system and guided short-term interest rates lower. Analysts forecast two more RRR cuts of 50 basis points each in this quarter and the last quarter. Economists expect the central bank to keep its benchmark rate unchanged at 4.35 percent through at least the end of 2020. The poll also predicted annual consumer inflation will pick up to 2.3 per cent in 2019, quickening from 2.1 per cent estimate in the April survey, but below the government target of around 3 per cent. Data this week showed China's producer prices stalled in June while consumer price growth reached a 15-month high as supply shortages triggered by the African swine fever outbreak and extreme weather continued to push up pork and fruit prices.

China's 2019 growth seen slowing to 6.2 per cent as trade war weighs: Report

Torrential rain in east and south <a href="https://www.wionews.com/world/sale-of-weapons-to-taiwan-violates-one-china-policy-cancel-it-immediately-china-to-us-234236">China</a> has affected more than 1.63 million people, the Ministry of Emergency Management said on Tuesday.

Rainstorm which has battered Zhejiang and Jiangxi provinces in east China, Hunan Province in central China, Guangxi Zhuang Autonomous Region in <a href="https://www.wionews.com/south-east-asia/southeast-asian-leaders-meet-expected-to-discuss-rohingyas-south-china-sea-229680">south China</a>, Chongqing Municipality, Sichuan Province and Guizhou Province in southwest China, affecting the lives of 1.634 million people. A total of 77,000 people have been relocated.

The inclement weather also damaged 126,100 hectares of crops. More than 1,600 houses collapsed and over 7,900 were damaged to varying degrees, causing a direct economic loss of 2.69 billion yuan (about 377 million US dollars).

The rain also caused the water levels of some rivers to rise above the warning levels. The Office of State Flood Control and Drought Relief Headquarters issued the lowest level emergency response plan on Tuesday and sent four working groups to some of those regions to join the relief operations.

The Office, together with the National Food and Strategic Reserves Administration, also deployed 50 rubber boats to Jiangxi Province on Tuesday to join the rescue operation.

Torrential rain in east and south China has affected more than 1.63 million people, the Ministry of Emergency Management said on Tuesday. Rainstorm which has battered Zhejiang and Jiangxi provinces in east China, Hunan Province in central China, Guangxi Zhuang Autonomous Region in south China, Chongqing Municipality, Sichuan Province and Guizhou Province in southwest China, affecting the lives of 1.

Torrential rain in east and south China has affected more than 1.63 million people, the Ministry of Emergency Management said on Tuesday. Rainstorm which has battered Zhejiang and Jiangxi provinces in east China, Hunan Province in central China, Guangxi Zhuang Autonomous Region in south China, Chongqing Municipality, Sichuan Province and Guizhou Province in southwest China, affecting the lives of 1.634 million people. A total of 77,000 people have been relocated. The inclement weather also damaged 126,100 hectares of crops. More than 1,600 houses collapsed and over 7,900 were damaged to varying degrees, causing a direct economic loss of 2.69 billion yuan (about 377 million US dollars). The rain also caused the water levels of some rivers to rise above the warning levels. The Office of State Flood Control and Drought Relief Headquarters issued the lowest level emergency response plan on Tuesday and sent four working groups to some of those regions to join the relief operations. The Office, together with the National Food and Strategic Reserves Administration, also deployed 50 rubber boats to Jiangxi Province on Tuesday to join the rescue operation.

Torrential rain affects over 1.63 million people in China

The <a href="https://www.wionews.com/world/china-us-agree-to-restart-trade-talks-at-xi-trump-meeting-report-231374">United States and China are set to relaunch trade talks</a> this week after a two-month hiatus, but a year after their trade war began there is little sign their differences have narrowed.

After meeting with Chinese President Xi Jinping in Japan just in late June, US President <a href="https://www.wionews.com/world/g20-summit-donald-trump-confirms-wont-impose-new-tariffs-on-china-231445">Donald Trump agreed to suspend a new round of tariffs</a> on $300 billion worth of imported Chinese consumer goods while the two sides resumed negotiations.

Trump said then that China would restart large purchases of US agricultural commodities, and the United States would ease some export restrictions on Chinese telecom equipment giant Huawei Technologies.

But sources familiar with the talks and <a href="https://www.wionews.com/business-economy/oil-prices-drop-as-trade-tensions-stoke-economy-worries-234147">China trade</a> watchers in Washington say the summit did little to clear the path for top negotiators to resolve an impasse that caused trade deal talks to break down in early May.

A US official said last week the <a href="https://www.wionews.com/world/us-china-trade-officials-aim-to-talk-next-week-officials-233488">discussions were expected to resume with a phone call</a> between US <a href="https://www.wionews.com/business-economy/oil-prices-drop-as-trade-tensions-stoke-economy-worries-234147">Trade </a>Representative Robert Lighthizer, Chinese Vice Premier Liu He and Treasury Secretary Steven Mnuchin.

A USTR spokesman said the call was expected this week, but gave no further details.

The United States is demanding that China make sweeping policy changes to better protect American intellectual property, end the forced transfer and theft of trade secrets and curb massive state industrial subsidies. At stake, US officials say, is the dominance of the high-tech industries of the future, from artificial intelligence to aerospace.

"We've had a change in atmospherics," said Derek Scissors, a China expert at the American Enterprise Institute, a business-oriented Washington think tank. "While this is great for markets, the administration has not said one specific thing about how we're unstuck."

Scissors, who has at times consulted with Trump administration officials, said that both sides got what they wanted out of the summit -- a lowering of the temperature and the avoidance of new tariffs that would have been painful for both sides.

Watch: US-China trade friction hurting world economic chain: Chinese scholars

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"The pressure for one side to give in to the other is diffused right now. I expect this to drag out for months," Scissors added.

No firm commitments

Washington and Beijing appear to have different ideas of what the two leaders agreed in Osaka.

Three sources familiar with the state of negotiations say that the Chinese side did not make firm commitments to immediately purchase agricultural commodities.

In pics: <a href="https://www.wionews.com/photos/why-china-is-afraid-of-us-abrams-tanks-to-be-delivered-to-taiwan-234260">Why China is afraid of US Abrams tanks to be delivered to Taiwan</a>

One of the sources said Trump raised the issue of agricultural purchases twice during the meeting, but Xi only agreed to consider purchases in the context of a broader final agreement.

Other than a small purchase of American rice by a private Chinese firm, no purchases have materialized. Chinese officials and state media accounts in the past week have emphasized that any deal, including agricultural purchases, is dependent on the removal of US tariffs.

"The Chinese have been clear they didn't promise anything," said one source familiar with the talks.

"The idea they would give up their main leverage before getting anything doesn’t make sense. I could see them buying some pork and buying some soybeans, but it's still going to be pennies."

Trump administration officials have also downplayed the extent of pledges to allow Huawei to purchase US technology products, with White House trade adviser Peter Navarro saying that only "lower-tech" US semiconductors could be made available for sale to the company. [nL2N243133].

Reuters reported last week that the Commerce Department's export control enforcement staff was told to continue to treat Huawei as a blacklisted entity as the department considers requests for licenses to US&nbsp;firms to sell products and services to Huawei [nL2N24402Y]

Chinese officials point out that they only got the United States to concede on Huawei at the Osaka talks, rather than on their other demand, which was removing the existing tariffs.

So the focus on the upcoming talks will be the scrapping on the tariffs, they say.

A second source said that US tariffs on $250 billion worth of Chinese goods and Chinese tariffs on $160 billion worth of US goods could wind up being "the new normal."

One Chinese official familiar with the situation said that trade talks would be re-started very quickly, but that there was a "fairly large gap" in the core demands of both countries and it would be a challenge to reach consensus on the toughest issues.

"The negotiating environment is even more severe," the official said.

Another official said <a href="https://www.wionews.com/world/sale-of-weapons-to-taiwan-violates-one-china-policy-cancel-it-immediately-china-to-us-234236">China remained concerned</a> about the presence of hawks in the US&nbsp;team, such as Trump advisor Peter Navarro.

"There are bullies there," the official said.

The officials spoke to Reuters on condition of anonymity.

China's foreign ministry cited Xi as telling Trump at Osaka that "on issues concerning China's sovereignty and dignity, China must safeguard its core interests".

A senior Beijing-based Asia diplomat said there would be pressure on China's leadership not to give in to the United States and for any outcomes to seen as equal and balanced.

"A trade deal cannot be portrayed as a victory for the United States," the diplomat said, citing conversations with Chinese officials.

Which text?

There has been no indication the two sides will resume negotiations using a text that had been largely agreed before China backtracked on commitments in early May, prompting Trump to proceed with a long-threatened tariff hike to 25 per cent on a $200 billion list of Chinese imports.

Beijing had cut out of that text commitments to make changes to its laws reflecting reform pledges, arguing that this would violate its national sovereignty.

Lighthizer has insisted on legal changes to make it more likely that Chinese reform pledges will be carried out.

Finding a way around this issue is paramount for talks. Beyond that, there are many other difficult issues to resolve, including the structure of an enforcement mechanism designed to hold the two sides to their pledges.

US demands for curbs to provincial and local subsidies for Chinese state companies, access to China's cloud computing market, agricultural biotech approvals and the ultimate size of China's purchases of agricultural products are all divisive issues for the two sides.

Claire Reade, a former China trade negotiator at USTR who is now a Washington-based trade lawyer with the firm Arnold and Porter, said there was room on both sides to get a deal.

"It's a question of political will and there are ways to manoeuvre around the current red flags that have been put in the ground," Reade said. "Both President Xi and President Trump have to come out of this saying they stood strong, and they in-effect got a win."

One way for China to avoid the appearance of giving in to US demands is to take some legal steps on key issues before the deal is agreed. That way they can say they’re doing it on their terms, she added.

The United States and China are set to relaunch trade talks this week after a two-month hiatus, but a year after their trade war began there is little sign their differences have narrowed.

The United States and China are set to relaunch trade talks this week after a two-month hiatus, but a year after their trade war began there is little sign their differences have narrowed. After meeting with Chinese President Xi Jinping in Japan just in late June, US President Donald Trump agreed to suspend a new round of tariffs on $300 billion worth of imported Chinese consumer goods while the two sides resumed negotiations. Trump said then that China would restart large purchases of US agricultural commodities, and the United States would ease some export restrictions on Chinese telecom equipment giant Huawei Technologies. But sources familiar with the talks and China trade watchers in Washington say the summit did little to clear the path for top negotiators to resolve an impasse that caused trade deal talks to break down in early May. A US official said last week the discussions were expected to resume with a phone call between US Trade Representative Robert Lighthizer, Chinese Vice Premier Liu He and Treasury Secretary Steven Mnuchin. A USTR spokesman said the call was expected this week, but gave no further details. The United States is demanding that China make sweeping policy changes to better protect American intellectual property, end the forced transfer and theft of trade secrets and curb massive state industrial subsidies. At stake, US officials say, is the dominance of the high-tech industries of the future, from artificial intelligence to aerospace. "We've had a change in atmospherics," said Derek Scissors, a China expert at the American Enterprise Institute, a business-oriented Washington think tank. "While this is great for markets, the administration has not said one specific thing about how we're unstuck." Scissors, who has at times consulted with Trump administration officials, said that both sides got what they wanted out of the summit -- a lowering of the temperature and the avoidance of new tariffs that would have been painful for both sides. Watch: US-China trade friction hurting world economic chain: Chinese scholars × "The pressure for one side to give in to the other is diffused right now. I expect this to drag out for months," Scissors added. No firm commitments Washington and Beijing appear to have different ideas of what the two leaders agreed in Osaka. Three sources familiar with the state of negotiations say that the Chinese side did not make firm commitments to immediately purchase agricultural commodities. In pics: Why China is afraid of US Abrams tanks to be delivered to Taiwan One of the sources said Trump raised the issue of agricultural purchases twice during the meeting, but Xi only agreed to consider purchases in the context of a broader final agreement. Other than a small purchase of American rice by a private Chinese firm, no purchases have materialized. Chinese officials and state media accounts in the past week have emphasized that any deal, including agricultural purchases, is dependent on the removal of US tariffs. "The Chinese have been clear they didn't promise anything," said one source familiar with the talks. "The idea they would give up their main leverage before getting anything doesn’t make sense. I could see them buying some pork and buying some soybeans, but it's still going to be pennies." Trump administration officials have also downplayed the extent of pledges to allow Huawei to purchase US technology products, with White House trade adviser Peter Navarro saying that only "lower-tech" US semiconductors could be made available for sale to the company. [nL2N243133]. Reuters reported last week that the Commerce Department's export control enforcement staff was told to continue to treat Huawei as a blacklisted entity as the department considers requests for licenses to US firms to sell products and services to Huawei [nL2N24402Y] Chinese officials point out that they only got the United States to concede on Huawei at the Osaka talks, rather than on their other demand, which was removing the existing tariffs. So the focus on the upcoming talks will be the scrapping on the tariffs, they say. A second source said that US tariffs on $250 billion worth of Chinese goods and Chinese tariffs on $160 billion worth of US goods could wind up being "the new normal." One Chinese official familiar with the situation said that trade talks would be re-started very quickly, but that there was a "fairly large gap" in the core demands of both countries and it would be a challenge to reach consensus on the toughest issues. "The negotiating environment is even more severe," the official said. Another official said China remained concerned about the presence of hawks in the US team, such as Trump advisor Peter Navarro. "There are bullies there," the official said. The officials spoke to Reuters on condition of anonymity. China's foreign ministry cited Xi as telling Trump at Osaka that "on issues concerning China's sovereignty and dignity, China must safeguard its core interests". A senior Beijing-based Asia diplomat said there would be pressure on China's leadership not to give in to the United States and for any outcomes to seen as equal and balanced. "A trade deal cannot be portrayed as a victory for the United States," the diplomat said, citing conversations with Chinese officials. Which text? There has been no indication the two sides will resume negotiations using a text that had been largely agreed before China backtracked on commitments in early May, prompting Trump to proceed with a long-threatened tariff hike to 25 per cent on a $200 billion list of Chinese imports. Beijing had cut out of that text commitments to make changes to its laws reflecting reform pledges, arguing that this would violate its national sovereignty. Lighthizer has insisted on legal changes to make it more likely that Chinese reform pledges will be carried out. Finding a way around this issue is paramount for talks. Beyond that, there are many other difficult issues to resolve, including the structure of an enforcement mechanism designed to hold the two sides to their pledges. US demands for curbs to provincial and local subsidies for Chinese state companies, access to China's cloud computing market, agricultural biotech approvals and the ultimate size of China's purchases of agricultural products are all divisive issues for the two sides. Claire Reade, a former China trade negotiator at USTR who is now a Washington-based trade lawyer with the firm Arnold and Porter, said there was room on both sides to get a deal. "It's a question of political will and there are ways to manoeuvre around the current red flags that have been put in the ground," Reade said. "Both President Xi and President Trump have to come out of this saying they stood strong, and they in-effect got a win." One way for China to avoid the appearance of giving in to US demands is to take some legal steps on key issues before the deal is agreed. That way they can say they’re doing it on their terms, she added.

United States, China to relaunch talks with little changed since deal fell apart

Why China is afraid of US Abrams tanks to be delivered to Taiwan

<a href="https://www.wionews.com/south-asia/sheikh-hasina-calls-india-bangladesh-ties-organic-232905">Bangladesh Prime Minister Sheikh Hasina</a> on Monday criticised a top US lawmaker's proposal to merge <a href="https://www.wionews.com/south-asia/dozens-of-boat-people-found-stranded-in-myanmars-rakhine-official-234047">Myanmar's restive Rakhine state</a> into her country, saying it was an attempt to "start a fire in the region" and the move was "not acceptable".

On June 13, the proposal was placed in the US Congress for bringing Rakhine state in Myanmar under Bangladesh since millions of <a href="https://www.wionews.com/south-east-asia/southeast-asian-leaders-meet-expected-to-discuss-rohingyas-south-china-sea-229680">Rohingyas</a> fled the Buddhist-majority country and taken refuge in the neighbouring nation.

The proposal was made by Congressman Bradley Sherman, Chairman of the Sub-committee on Asia-Pacific, during a hearing on the State Department`s budget for South Asia.

"It is never right to create troubles inside a sovereign country. And the issue they have touched upon is already a burning one. There has not been any peace wherever they have stepped in but instead, it has led to militancy and unrest," Hasina was quoted by bdnews24 as saying while reacting to the proposal.

"We are trying to bring peace to this region. But they are trying to start a fire here. This is not acceptable," she said.&nbsp;

Underlining that Bangladesh respected Myanmar`s sovereignty, Hasina said that her government would never allow the integration of a territory of one`s country with another.

"We have our borders and we are happy with it. We completely disagree with adding another country's territory to ours. We will never take it," she stressed.&nbsp;

The Bangladeshi leader advised Sherman to instead urge Myanmar to allow Rohingyas to return to the country and asked the US to initiate an investigation into human rights violations.

"Sherman should instead urge Myanmar to take back its citizens. That would be a humanitarian act. And they should also look into all the human rights violations," Hasina said.

Hasina, who recently paid a state visit to China, said she held talks with President Xi Jinping and Prime Minister Li Keqiang on Rohingya crisis and informed that Beijing will work on resolving the pressing issue.

Over 1.1 million Rohingyas have been forced to take shelter in Bangladesh`s Cox Bazaar after Myanmar`s armed forces while responding to attacks by an armed group, launched a brutal campaign against the community in Rakhine state in 2017.

According to a UN report, titled 'Forced Migration of Rohingya: The Untold Experience', around 18,000 Rohingya women and girls were allegedly raped by Myanmar's security forces and over 115,000 Rohingya homes were burned down and 113,000 others vandalised.&nbsp;

Bangladesh Prime Minister Sheikh Hasina on Monday criticised a top US lawmaker's proposal to merge Myanmar's restive Rakhine state into her country, saying it was an attempt to "start a fire in the region" and the move was "not acceptable".

Bangladesh Prime Minister Sheikh Hasina on Monday criticised a top US lawmaker's proposal to merge Myanmar's restive Rakhine state into her country, saying it was an attempt to "start a fire in the region" and the move was "not acceptable". On June 13, the proposal was placed in the US Congress for bringing Rakhine state in Myanmar under Bangladesh since millions of Rohingyas fled the Buddhist-majority country and taken refuge in the neighbouring nation. The proposal was made by Congressman Bradley Sherman, Chairman of the Sub-committee on Asia-Pacific, during a hearing on the State Department`s budget for South Asia. "It is never right to create troubles inside a sovereign country. And the issue they have touched upon is already a burning one. There has not been any peace wherever they have stepped in but instead, it has led to militancy and unrest," Hasina was quoted by bdnews24 as saying while reacting to the proposal. "We are trying to bring peace to this region. But they are trying to start a fire here. This is not acceptable," she said. Underlining that Bangladesh respected Myanmar`s sovereignty, Hasina said that her government would never allow the integration of a territory of one`s country with another. "We have our borders and we are happy with it. We completely disagree with adding another country's territory to ours. We will never take it," she stressed. The Bangladeshi leader advised Sherman to instead urge Myanmar to allow Rohingyas to return to the country and asked the US to initiate an investigation into human rights violations. "Sherman should instead urge Myanmar to take back its citizens. That would be a humanitarian act. And they should also look into all the human rights violations," Hasina said. Hasina, who recently paid a state visit to China, said she held talks with President Xi Jinping and Prime Minister Li Keqiang on Rohingya crisis and informed that Beijing will work on resolving the pressing issue. Over 1.1 million Rohingyas have been forced to take shelter in Bangladesh`s Cox Bazaar after Myanmar`s armed forces while responding to attacks by an armed group, launched a brutal campaign against the community in Rakhine state in 2017. According to a UN report, titled 'Forced Migration of Rohingya: The Untold Experience', around 18,000 Rohingya women and girls were allegedly raped by Myanmar's security forces and over 115,000 Rohingya homes were burned down and 113,000 others vandalised.

Sheikh Hasina slams US lawmaker's proposal to integrate Rakhine with Bangladesh

Five people were arrested during overnight <a href="https://www.wionews.com/world/violent-clashes-as-hong-kong-marks-china-handover-anniversary-232056">clashes in Hong Kong </a>between riot officers and anti-government protesters, police said Monday, as the political violence rocking the international hub shows no sign of abating.

The city has been plunged into its worst crisis in recent history following a month of huge marches as well as separate violent confrontations with police involving a minority of hardcore protesters.&nbsp;

The rallies were sparked by a now-suspended law that would have allowed extraditions to mainland <a href="https://www.wionews.com/world/riot-police-baton-charge-protesters-in-hong-kong-233863">China</a>, but have since morphed into a wider movement calling for democratic reforms and a halt to sliding freedoms in the semi-autonomous territory.

Sunday night saw fresh political violence break out in the district of Mongkok as police baton-charged small groups of masked, largely young protesters who were walking along roads and refused to disperse following another massive, peaceful rally earlier in the day.

In a statement issued early Monday morning, police said the group was taking part in an "unlawful assembly" and had been warned that officers would take action.&nbsp;

"Some protesters resisted and police arrested five persons for assaulting a police officer and obstructing a police officer in the execution of duties," the statement said.

Activists hit out at the police tactics, saying the protesters in Mongkok had remained peaceful as they made their way home and that violence was started by a shield wall of riot officers that had blocked the crowd's path.&nbsp;

"HKers joined rally peacefully... against extradition, bill results in being beaten and assaulted by HK Police," democracy activist Joshua Wong wrote in a tweet accompanying pictures of at least two protesters with bleeding head wounds.&nbsp;

"Just another example of excessive force used by the police," he added in another tweet.

Public anger has soared against the city's pro-Beijing leaders and its police force after officers used tear gas and rubber bullets to disperse protesters outside parliament last month.

Since then the chaos has only escalated. Last Monday, anger peaked as hundreds of youth-led demonstrators successfully stormed and trashed the city's parliament.

Those unprecedented scenes -- and renewed huge marches -- have failed to persuade the government, whose sole concession so far has been to suspend the loathed extradition bill.&nbsp;

Protesters are demanding the bill be scrapped entirely, an independent inquiry into police use of tear gas and rubber bullets, amnesty for those arrested, and for the city's unelected leader Carrie Lam to step down.

They have also demanded authorities stop characterizing protesters as "rioters", a definition that carries much steeper jail terms.

Beijing has thrown its full support behind the embattled Lam, calling on Hong Kong police to pursue anyone involved in the parliament storming and other clashes.

Despite repeated requests, police have not released a breakdown of how many people have been detained in the last month of protests.

Five people were arrested during overnight clashes in Hong Kong between riot officers and anti-government protesters, police said Monday, as the political violence rocking the international hub shows no sign of abating.

Five people were arrested during overnight clashes in Hong Kong between riot officers and anti-government protesters, police said Monday, as the political violence rocking the international hub shows no sign of abating. The city has been plunged into its worst crisis in recent history following a month of huge marches as well as separate violent confrontations with police involving a minority of hardcore protesters. The rallies were sparked by a now-suspended law that would have allowed extraditions to mainland China, but have since morphed into a wider movement calling for democratic reforms and a halt to sliding freedoms in the semi-autonomous territory. Sunday night saw fresh political violence break out in the district of Mongkok as police baton-charged small groups of masked, largely young protesters who were walking along roads and refused to disperse following another massive, peaceful rally earlier in the day. In a statement issued early Monday morning, police said the group was taking part in an "unlawful assembly" and had been warned that officers would take action. "Some protesters resisted and police arrested five persons for assaulting a police officer and obstructing a police officer in the execution of duties," the statement said. Activists hit out at the police tactics, saying the protesters in Mongkok had remained peaceful as they made their way home and that violence was started by a shield wall of riot officers that had blocked the crowd's path. "HKers joined rally peacefully... against extradition, bill results in being beaten and assaulted by HK Police," democracy activist Joshua Wong wrote in a tweet accompanying pictures of at least two protesters with bleeding head wounds. "Just another example of excessive force used by the police," he added in another tweet. Public anger has soared against the city's pro-Beijing leaders and its police force after officers used tear gas and rubber bullets to disperse protesters outside parliament last month. Since then the chaos has only escalated. Last Monday, anger peaked as hundreds of youth-led demonstrators successfully stormed and trashed the city's parliament. Those unprecedented scenes -- and renewed huge marches -- have failed to persuade the government, whose sole concession so far has been to suspend the loathed extradition bill. Protesters are demanding the bill be scrapped entirely, an independent inquiry into police use of tear gas and rubber bullets, amnesty for those arrested, and for the city's unelected leader Carrie Lam to step down. They have also demanded authorities stop characterizing protesters as "rioters", a definition that carries much steeper jail terms. Beijing has thrown its full support behind the embattled Lam, calling on Hong Kong police to pursue anyone involved in the parliament storming and other clashes. Despite repeated requests, police have not released a breakdown of how many people have been detained in the last month of protests.

Hong Kong police arrest five after night of clashes

China and the rest of the world must co-exist, <a href="https://www.wionews.com/south-asia/china-will-always-stand-by-pakistans-core-interests-chinese-vice-president-221991">Chinese Vice President Wang Qishan</a> said on Monday, in an indirect jab at the <a href="https://www.wionews.com/world/united-states-congress-expands-probe-of-white-house-personal-email-use-232215">United States</a> with which Beijing is currently trying to resolve a bitter trade war.

"China's development can't shut out the rest of the world. The world's development can't shut out China," Wang said in an opening address to the World Peace Forum at Beijing's elite Tsinghua University.

Wang also warned against "protectionism in the name of national security", without mentioning the United States, and called major powers to make more contributions to global peace and stability.

The Trump administration has accused China of engaging in unfair trade practices that discriminate against US firms, forced technology transfers, and intellectual property rights theft, all charges Beijing has denied.

Both sides have levelled increasingly severe tariffs on each other's imports.

China has also been angered by the US sanctions against Chinese tech giant Huawei Technologies Co Ltd over national security concerns.

Wang, who is extremely close to Chinese President Xi Jinping and who only rarely speaks in public, reiterated China's commitment to opening up.

The world needs China just as much as China needs the world, said Wang, who became vice president last year having previously lead Xi's fight against deep-rooted corruption.

"Large countries must assume their responsibilities and set an example, make more contributions to global peace and stability, and broaden the path of joint development," he said.

"Development is the key to resolving all issues," Wang told an audience that included senior Beijing-based Western diplomats and former European Council President Herman Van Rompuy.

Top representatives of the United States and China are organizing a resumption of talks for this week to try to resolve the year-long trade war between the world's two largest economies.

The two sides have been in communication by telephone since last month's G20 summit when US President Donald Trump and Xi agreed to relaunch talks that had stalled in May.

Talks between the two sides broke down in May after US officials accused China of pulling back from commitments it had made previously in the text of an agreement that negotiators said was nearly finished.

The two countries have been at loggerheads over a series of other issues, from human rights to the disputed South China Sea and US support of self-ruled Taiwan, claimed by China as its own.

Wang said that no matter how the international situation develops or how China develops, it will walk the path of peace, and not seek spheres of influence or expansion.

"If there is no peaceful, stable international environment, there will be no development to talk of."

China and the rest of the world must co-exist, Chinese Vice President Wang Qishan said on Monday, in an indirect jab at the United States with which Beijing is currently trying to resolve a bitter trade war.

China and the rest of the world must co-exist, Chinese Vice President Wang Qishan said on Monday, in an indirect jab at the United States with which Beijing is currently trying to resolve a bitter trade war. "China's development can't shut out the rest of the world. The world's development can't shut out China," Wang said in an opening address to the World Peace Forum at Beijing's elite Tsinghua University. Wang also warned against "protectionism in the name of national security", without mentioning the United States, and called major powers to make more contributions to global peace and stability. The Trump administration has accused China of engaging in unfair trade practices that discriminate against US firms, forced technology transfers, and intellectual property rights theft, all charges Beijing has denied. Both sides have levelled increasingly severe tariffs on each other's imports. China has also been angered by the US sanctions against Chinese tech giant Huawei Technologies Co Ltd over national security concerns. Wang, who is extremely close to Chinese President Xi Jinping and who only rarely speaks in public, reiterated China's commitment to opening up. The world needs China just as much as China needs the world, said Wang, who became vice president last year having previously lead Xi's fight against deep-rooted corruption. "Large countries must assume their responsibilities and set an example, make more contributions to global peace and stability, and broaden the path of joint development," he said. "Development is the key to resolving all issues," Wang told an audience that included senior Beijing-based Western diplomats and former European Council President Herman Van Rompuy. Top representatives of the United States and China are organizing a resumption of talks for this week to try to resolve the year-long trade war between the world's two largest economies. The two sides have been in communication by telephone since last month's G20 summit when US President Donald Trump and Xi agreed to relaunch talks that had stalled in May. Talks between the two sides broke down in May after US officials accused China of pulling back from commitments it had made previously in the text of an agreement that negotiators said was nearly finished. The two countries have been at loggerheads over a series of other issues, from human rights to the disputed South China Sea and US support of self-ruled Taiwan, claimed by China as its own. Wang said that no matter how the international situation develops or how China develops, it will walk the path of peace, and not seek spheres of influence or expansion. "If there is no peaceful, stable international environment, there will be no development to talk of."

In jab at US, China's vice president Wang Qishan says world cannot shut China out

China on Monday said "unilateral bullying" by the United States was the cause behind the escalating Iran nuclear crisis, after <a href="https://www.wionews.com/world/britains-oil-tanker-seizure-will-not-go-without-a-response-iran-defence-minister-233959">Tehran</a> announced it was <a href="https://www.wionews.com/world/iran-says-it-will-enrich-uranium-at-any-level-challenging-us-233760">set to breach its uranium enrichment</a> cap.

"The facts show that unilateral bullying has already become a worsening tumour," said Chinese foreign ministry spokesman Geng Shuang at a press briefing in Beijing.

"The <a href="https://www.wionews.com/world/iran-better-be-careful-warns-trump-on-breaching-uranium-enrichment-cap-233859">maximum pressure exerted by the US</a> on Iran is the root cause of the Iranian nuclear crisis," he said.

Iran threatened on Sunday to abandon more commitments to an endangered 2015 nuclear deal unless a solution is found with the remaining parties after the US pulled out.&nbsp;

The 2015 deal was reached between Iran and <a href="https://www.wionews.com/world/after-britain-germany-strongly-urges-iran-to-halt-uranium-enrichment-233803">six world powers</a> -- Britain, China, France, Germany, the United States and Russia -- and saw Tehran agree to drastically scale down its nuclear programme in exchange for sanctions relief.

Washington began reimposing sanctions on Iran in August 2018 and has targeted crucial sectors including oil exports and the banking system, fuelling a deep recession.

Watch: Iran Shifts From Patience to Confrontation

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<a href="https://www.wionews.com/world/un-nuclear-watchdogs-board-to-meet-on-iran-at-request-of-us-233425">Tehran's move to start enriching uranium</a> above the maximum purification level has already drawn opposition from countries backing the nuclear deal, with Germany urging it to "stop and reverse all activities inconsistent with its commitments."

Geng said China has expressed "regret" for Tehran's decision to reduce its fulfilment of the Iran nuclear deal.&nbsp;

China on Monday said "unilateral bullying" by the United States was the cause behind the escalating Iran nuclear crisis, after Tehran announced it was set to breach its uranium enrichment cap.

China on Monday said "unilateral bullying" by the United States was the cause behind the escalating Iran nuclear crisis, after Tehran announced it was set to breach its uranium enrichment cap. "The facts show that unilateral bullying has already become a worsening tumour," said Chinese foreign ministry spokesman Geng Shuang at a press briefing in Beijing. "The maximum pressure exerted by the US on Iran is the root cause of the Iranian nuclear crisis," he said. Iran threatened on Sunday to abandon more commitments to an endangered 2015 nuclear deal unless a solution is found with the remaining parties after the US pulled out. The 2015 deal was reached between Iran and six world powers -- Britain, China, France, Germany, the United States and Russia -- and saw Tehran agree to drastically scale down its nuclear programme in exchange for sanctions relief. Washington began reimposing sanctions on Iran in August 2018 and has targeted crucial sectors including oil exports and the banking system, fuelling a deep recession. Watch: Iran Shifts From Patience to Confrontation × Tehran's move to start enriching uranium above the maximum purification level has already drawn opposition from countries backing the nuclear deal, with Germany urging it to "stop and reverse all activities inconsistent with its commitments." Geng said China has expressed "regret" for Tehran's decision to reduce its fulfilment of the Iran nuclear deal.

'Bullying' by United States is cause behind escalating Iran nuclear crisis: China

US and Chinese officials are working to <a href="https://www.wionews.com/world/china-us-agree-to-restart-trade-talks-at-xi-trump-meeting-report-231374">schedule a top-level trade talk</a> by telephone next week but a face-to-face encounter has not been scheduled yet, US officials said Friday.

Efforts to pencil in a new round of negotiations come a week after President Donald Trump and Chinese counterpart Xi Jinping met in Japan and agreed to restart their stalled negotiations.

But Beijing this week showed no sign of softening its position, with the Commerce Ministry announcing Thursday that any resolution would require Washington to lift the steep tariffs it imposed on Chinese imports last year.

"I know they're working on coming up with a date for so-called face-to-face meetings. That will happen," top White House economic advisor Larry Kudlow told Fox Business Network on Friday.

"I don't know if that's this coming week. I think the phone calls are this week. The face-to-face may not be for another week, but I don't want to get ahead of that curve," he said.

An official with the US Trade Representative's office confirmed to AFP that efforts are underway to schedule a call between top negotiators for next week.

Meanwhile, The South China Morning Post also reported Friday that talks were due to resume in Beijing next week.

US stocks appeared to react positively to word talks will resume, erasing some of the losses from earlier in the day when a strong jobs report called into doubt a hoped-for cut in interest rates by the Federal Reserve.

Trade talks with Beijing have been stalled since May, when Trump accused Chinese negotiators of reneging on core commitments made over prior months of negotiating.

But at their meeting last week on the sidelines of the Group of 20 summit in Japan, Trump agreed to soften the hardline stance on Chinese telecommunications giant Huawei, a company US officials claim poses a national security threat.

The decision triggered a backlash among lawmakers on Capitol Hill but White House officials said the changes should not create any additional risk to US national security.

The White House also said this week it had no intention of easing a ban on Huawei's participation in the development of 5G wireless networks in the United States.

Beijing and Washington have hit each other with tariffs on $360 billion in two-way trade since last year, rattling markets and weighing on the manufacturing sector while fueling concerns about a weakening global economy.

US and Chinese officials are working to schedule a top-level trade talk by telephone next week but a face-to-face encounter has not been scheduled yet, US officials said Friday.

US and Chinese officials are working to schedule a top-level trade talk by telephone next week but a face-to-face encounter has not been scheduled yet, US officials said Friday. Efforts to pencil in a new round of negotiations come a week after President Donald Trump and Chinese counterpart Xi Jinping met in Japan and agreed to restart their stalled negotiations. But Beijing this week showed no sign of softening its position, with the Commerce Ministry announcing Thursday that any resolution would require Washington to lift the steep tariffs it imposed on Chinese imports last year. "I know they're working on coming up with a date for so-called face-to-face meetings. That will happen," top White House economic advisor Larry Kudlow told Fox Business Network on Friday. "I don't know if that's this coming week. I think the phone calls are this week. The face-to-face may not be for another week, but I don't want to get ahead of that curve," he said. An official with the US Trade Representative's office confirmed to AFP that efforts are underway to schedule a call between top negotiators for next week. Meanwhile, The South China Morning Post also reported Friday that talks were due to resume in Beijing next week. US stocks appeared to react positively to word talks will resume, erasing some of the losses from earlier in the day when a strong jobs report called into doubt a hoped-for cut in interest rates by the Federal Reserve. Trade talks with Beijing have been stalled since May, when Trump accused Chinese negotiators of reneging on core commitments made over prior months of negotiating. But at their meeting last week on the sidelines of the Group of 20 summit in Japan, Trump agreed to soften the hardline stance on Chinese telecommunications giant Huawei, a company US officials claim poses a national security threat. The decision triggered a backlash among lawmakers on Capitol Hill but White House officials said the changes should not create any additional risk to US national security. The White House also said this week it had no intention of easing a ban on Huawei's participation in the development of 5G wireless networks in the United States. Beijing and Washington have hit each other with tariffs on $360 billion in two-way trade since last year, rattling markets and weighing on the manufacturing sector while fueling concerns about a weakening global economy.

US-China trade officials aim to talk next week by telephone

The Chinese commerce ministry said Thursday that <a href="https://www.wionews.com/world/g20-summit-us-china-high-stakes-bilateral-meeting-gets-underway-in-osaka-231356">US tariffs</a> against China must be lifted for the two sides to reach a deal to end the trade war, reported news agency AFP.&nbsp;

Trade teams from the world's top two economies "have maintained communication", the report added quoting ministry spokesman Gao Feng, days after presidents Donald Trump and Xi Jinping announced a truce and committed to revive negotiations&nbsp;on the sidelines of G20 in Osaka, Japan.

"The United States' unilateral tariff increase on China's exports to the United States is the starting point for the&nbsp;Sino-US economic and trade frictions," Gao said at a weekly press briefing.

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"If the two sides can reach an agreement, the tariffs imposed must be completely eliminated. China's attitude toward this is clear and consistent," Gao added.

The countries have exchanged tariffs on $360 billion in two-way trade and <a href="https://www.wionews.com/world/china-us-agree-to-restart-trade-talks-at-xi-trump-meeting-report-231374">negotiations broke down</a> in May after the United States accused China of reneging on its commitments.

The US leader said he would not slap new tariffs on Chinese exports and suggested he could take a softer stance on Chinese telecom giant Huawei, which he has moved to blacklist.&nbsp;

(With inputs from AFP)

The Chinese commerce ministry said Thursday that US tariffs against China must be lifted for the two sides to reach a deal to end the trade war, reported news agency AFP.

The Chinese commerce ministry said Thursday that US tariffs against China must be lifted for the two sides to reach a deal to end the trade war, reported news agency AFP. Trade teams from the world's top two economies "have maintained communication", the report added quoting ministry spokesman Gao Feng, days after presidents Donald Trump and Xi Jinping announced a truce and committed to revive negotiations on the sidelines of G20 in Osaka, Japan. "The United States' unilateral tariff increase on China's exports to the United States is the starting point for the Sino-US economic and trade frictions," Gao said at a weekly press briefing. × "If the two sides can reach an agreement, the tariffs imposed must be completely eliminated. China's attitude toward this is clear and consistent," Gao added. The countries have exchanged tariffs on $360 billion in two-way trade and negotiations broke down in May after the United States accused China of reneging on its commitments. The US leader said he would not slap new tariffs on Chinese exports and suggested he could take a softer stance on Chinese telecom giant Huawei, which he has moved to blacklist. (With inputs from AFP)

China says US tariffs must be lifted to reach a deal to end trade war

The Pentagon said on Tuesday a recent Chinese missile launch in the disputed South China Sea was "disturbing" and contrary to Chinese pledges that it would not militarise the disputed waterway.

The <a href="https://www.wionews.com/world/us-warship-sails-in-disputed-south-china-sea-amid-trade-tensions-220018">South China Sea</a> is one of a growing number of flashpoints in the <a href="https://www.wionews.com/opinions/us-china-trade-war-points-to-the-real-crisis-that-global-leaders-must-confront-at-g20-summit-231112">US-China relationship</a>, which include a trade war, US sanctions and <a href="https://www.wionews.com/opinions/decoding-report-which-raises-concerns-over-china-attacking-taiwan-190996">Taiwan</a>.

China and the United States have repeatedly traded barbs in the past over what Washington says is Beijing's militarization of the South China Sea by building military installations on artificial islands and reefs.

A US official, speaking on the condition of anonymity, said China tested multiple anti-ship ballistic missiles over the weekend.

"Of course the Pentagon was aware of the Chinese missile launch from the man-made structures in the South China Sea near the Spratly Islands," Pentagon spokesman Lieutenant Colonel Dave Eastburn said.

"I'm not going to speak on behalf of all the sovereign nations in the region, but I'm sure they agree that the PRC's behaviour is contrary to its claim to want to bring peace to the region and obviously actions like this are coercive acts meant to intimidate other (South China Sea) claimants," Eastburn added. PRC is an acronym for the People's Republic of China.

China has not confirmed the missile tests and on Tuesday the foreign ministry declined to comment, referring questions to the defence ministry, which did not respond to a request for comment.

The Chinese government has said that the military was carrying out drills between the Spratly and Paracel Islands starting last weekend and ending on Wednesday, warning other shipping not to enter a designated area.

China's claims in the South China Sea, through which about $5 trillion in ship-borne trade passes each year, are contested by Brunei, Malaysia, the Philippines, Taiwan and Vietnam.

News of the China missile test was first reported by NBC News.

The Pentagon said on Tuesday a recent Chinese missile launch in the disputed South China Sea was "disturbing" and contrary to Chinese pledges that it would not militarise the disputed waterway.

The Pentagon said on Tuesday a recent Chinese missile launch in the disputed South China Sea was "disturbing" and contrary to Chinese pledges that it would not militarise the disputed waterway. The South China Sea is one of a growing number of flashpoints in the US-China relationship, which include a trade war, US sanctions and Taiwan. China and the United States have repeatedly traded barbs in the past over what Washington says is Beijing's militarization of the South China Sea by building military installations on artificial islands and reefs. A US official, speaking on the condition of anonymity, said China tested multiple anti-ship ballistic missiles over the weekend. "Of course the Pentagon was aware of the Chinese missile launch from the man-made structures in the South China Sea near the Spratly Islands," Pentagon spokesman Lieutenant Colonel Dave Eastburn said. "I'm not going to speak on behalf of all the sovereign nations in the region, but I'm sure they agree that the PRC's behaviour is contrary to its claim to want to bring peace to the region and obviously actions like this are coercive acts meant to intimidate other (South China Sea) claimants," Eastburn added. PRC is an acronym for the People's Republic of China. China has not confirmed the missile tests and on Tuesday the foreign ministry declined to comment, referring questions to the defence ministry, which did not respond to a request for comment. The Chinese government has said that the military was carrying out drills between the Spratly and Paracel Islands starting last weekend and ending on Wednesday, warning other shipping not to enter a designated area. China's claims in the South China Sea, through which about $5 trillion in ship-borne trade passes each year, are contested by Brunei, Malaysia, the Philippines, Taiwan and Vietnam. News of the China missile test was first reported by NBC News.

China's missile test in South China Sea 'disturbing': Pentagon

Several major <a href="https://www.wionews.com/world/us-hits-chinese-firm-sinovel-with-15-mn-fine-for-stealing-technology-149666">US-based technology</a> companies are planning to shift substantial production out of China, spurred by a bitter trade war between <a href="https://www.wionews.com/world/4th-july-celebrations-battle-tanks-arrive-in-washington-trump-promises-incredible-flyovers-biggest-ever-fireworks-232578">Washington</a> and Beijing, the Nikkei reported on Wednesday, citing sources.

Personal computer makers HP Inc and Dell Technologies are planning to reallocate up to 30% of their notebook production out of China, according to the Nikkei.

Microsoft Corp, Alphabet Inc, Amazon.com Inc, Sony Corp and Nintendo Co Ltd are also looking at moving some of their game console and smart speaker manufacturing out of the country, the Nikkei added.

US President Donald Trump and <a href="https://www.wionews.com/world/xi-jinping-heads-to-north-korea-to-meet-kim-jong-un-ahead-of-trump-talks-228852">Chinese President Xi Jinping</a> struck a truce at last weekend's Group of 20 summits in Japan, paving the way for a restart in trade talks after months of stalemate.

However, the companies are not likely to alter their plans of moving some of their production out of China as they also face higher operating costs in the country.

In June, Apple Inc asked its major suppliers to assess the cost implications of moving 15%-30% of their production capacity from China to Southeast Asia as it prepares for a restructuring of its supply chain, Nikkei had reported last month.

HP, Dell, Amazon, Microsoft and Google did not immediately respond to a Reuters' request for comment.

Several major US-based technology companies are planning to shift substantial production out of China, spurred by a bitter trade war between Washington and Beijing, the Nikkei reported on Wednesday, citing sources.

Several major US-based technology companies are planning to shift substantial production out of China, spurred by a bitter trade war between Washington and Beijing, the Nikkei reported on Wednesday, citing sources. Personal computer makers HP Inc and Dell Technologies are planning to reallocate up to 30% of their notebook production out of China, according to the Nikkei. Microsoft Corp, Alphabet Inc, Amazon.com Inc, Sony Corp and Nintendo Co Ltd are also looking at moving some of their game console and smart speaker manufacturing out of the country, the Nikkei added. US President Donald Trump and Chinese President Xi Jinping struck a truce at last weekend's Group of 20 summits in Japan, paving the way for a restart in trade talks after months of stalemate. However, the companies are not likely to alter their plans of moving some of their production out of China as they also face higher operating costs in the country. In June, Apple Inc asked its major suppliers to assess the cost implications of moving 15%-30% of their production capacity from China to Southeast Asia as it prepares for a restructuring of its supply chain, Nikkei had reported last month. HP, Dell, Amazon, Microsoft and Google did not immediately respond to a Reuters' request for comment.

HP, Dell, other tech firms plan to shift production out of China: Nikkei

Hong Kong's leader on Tuesday condemned "the extreme use of violence" by <a href="https://www.wionews.com/world/hong-kong-police-retake-parliament-from-anti-government-protesters-232153">masked protesters who stormed and ransacked the city's legislature</a> in an unprecedented challenge to Beijing's authority.

The semi-autonomous financial hub has been thrown into crisis by weeks of massive demonstrations over a push to pass a bill that would allow extraditions to the Chinese mainland.

But on Monday -- the <a href="https://www.wionews.com/world/violent-clashes-as-hong-kong-marks-china-handover-anniversary-232056">22nd anniversary of the city's handover to China</a> -- anger spilled over as groups of mostly young, hardline protesters, broke into the legislative council.

They hung the city's colonial-era flag in the debating chamber, scrawled messages such as "Hong Kong is not China" and defaced the city's emblematic seal with spray-paint.

Police charged into the building shortly after midnight, firing tear gas and sending plumes of smoke into the air.

The events pose an unparalleled challenge to Chinese leader Xi Jinping, who has so far left Lam to handle the protests.

In a pre-dawn press conference, Lam, the city's Beijing-appointed chief executive, described the scenes of vandalism as "heartbreaking and shocking".

"This is something we should seriously condemn because nothing is more important than the rule of law in Hong Kong," she said, with the city's police chief Stephen Lo by her side.

Lo added, "Protesters' violent acts have far exceeded the bottom line of peaceful expressions of demands."

The financial hub has been rocked by massive protests over the past three weeks as anger against the pro-Beijing government has boiled over.

The rallies -- including a huge pro-democracy march on Monday -- have been largely peaceful while calling for Lam, whose approval ratings are at a record low, to resign.

Watch:&nbsp;Hong Kong Protests -&nbsp;Implications for China

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But they have failed to win many concessions, with Lam resisting calls to permanently shelve the extradition law or step down.

On Monday, some hardline protesters appeared to have reached breaking point, saying they felt compelled to storm parliament because their concerns were going unheard.

"We have marched, staged sit-ins... but the government has remained unmoved," Joey, a 26-year-old protester, told AFP as she walked over shattered glass inside the building.&nbsp;

"We have to show the government that we won't just sit here and do nothing."

The legislature was closed on Tuesday, as police inspected the damage inside the building while workers waited outside to begin a clean-up.

Under the terms of Hong Kong's handover from British to Chinese rule in 1997, the city enjoys rights and liberties unseen on the autocratic mainland. But many residents accuse Beijing of reneging on that deal with the help of unelected leaders.

On Monday, the United States voiced its support for the protesters, with President Donald Trump saying the demonstrators were "looking for democracy".

"Unfortunately, some governments don't want democracy", he added, in a swipe at China.

Britain's Foreign Secretary Jeremy Hunt said his country's support for Hong Kong and "its freedoms is unwavering" and urged restraint from protesters.

Hong Kong's leader on Tuesday condemned "the extreme use of violence" by masked protesters who stormed and ransacked the city's legislature in an unprecedented challenge to Beijing's authority.

Hong Kong's leader on Tuesday condemned "the extreme use of violence" by masked protesters who stormed and ransacked the city's legislature in an unprecedented challenge to Beijing's authority. The semi-autonomous financial hub has been thrown into crisis by weeks of massive demonstrations over a push to pass a bill that would allow extraditions to the Chinese mainland. But on Monday -- the 22nd anniversary of the city's handover to China -- anger spilled over as groups of mostly young, hardline protesters, broke into the legislative council. They hung the city's colonial-era flag in the debating chamber, scrawled messages such as "Hong Kong is not China" and defaced the city's emblematic seal with spray-paint. Police charged into the building shortly after midnight, firing tear gas and sending plumes of smoke into the air. The events pose an unparalleled challenge to Chinese leader Xi Jinping, who has so far left Lam to handle the protests. In a pre-dawn press conference, Lam, the city's Beijing-appointed chief executive, described the scenes of vandalism as "heartbreaking and shocking". "This is something we should seriously condemn because nothing is more important than the rule of law in Hong Kong," she said, with the city's police chief Stephen Lo by her side. Lo added, "Protesters' violent acts have far exceeded the bottom line of peaceful expressions of demands." The financial hub has been rocked by massive protests over the past three weeks as anger against the pro-Beijing government has boiled over. The rallies -- including a huge pro-democracy march on Monday -- have been largely peaceful while calling for Lam, whose approval ratings are at a record low, to resign. Watch: Hong Kong Protests - Implications for China × But they have failed to win many concessions, with Lam resisting calls to permanently shelve the extradition law or step down. On Monday, some hardline protesters appeared to have reached breaking point, saying they felt compelled to storm parliament because their concerns were going unheard. "We have marched, staged sit-ins... but the government has remained unmoved," Joey, a 26-year-old protester, told AFP as she walked over shattered glass inside the building. "We have to show the government that we won't just sit here and do nothing." The legislature was closed on Tuesday, as police inspected the damage inside the building while workers waited outside to begin a clean-up. Under the terms of Hong Kong's handover from British to Chinese rule in 1997, the city enjoys rights and liberties unseen on the autocratic mainland. But many residents accuse Beijing of reneging on that deal with the help of unelected leaders. On Monday, the United States voiced its support for the protesters, with President Donald Trump saying the demonstrators were "looking for democracy". "Unfortunately, some governments don't want democracy", he added, in a swipe at China. Britain's Foreign Secretary Jeremy Hunt said his country's support for Hong Kong and "its freedoms is unwavering" and urged restraint from protesters.

Hong Kong leader Carrie Lam condemns 'extremely violent' protests

Asian markets surged Monday after Donald Trump and Xi Jinping agreed to restart trade talks, reviving hopes of an end to their tariffs war, while oil prices also rallied on news that Saudi Arabia and Russia will extend their output caps.

Trump's historic visit to North Korea, where he met leader Kim Jong Un, soothed geopolitical concerns and added to the upbeat mood on trading floors.

After a highly anticipated meeting on the sidelines of the G20 summit Saturday, the US president said negotiations to resolve the standoff between the world's two biggest economies were "back on track" and threatened new levies on Chinese goods would be held off.

Trump also signalled a softer position on Chinese telecom giant Huawei, a major bone of contention in the row, by saying US companies could sell equipment "where there's no great national security problem", White House economic advisor Larry Kudlow said Sunday.

While there had been a quiet sense of optimism the talks would end with an agreement to return to the negotiating table, the apparent concession on Huawei took some by surprise and provided some extra buying support.&nbsp;

The news was much-needed after Trump sparked volatility in early May with his shock decision to hit China with new tariffs and halt talks that had seemed to be nearing a positive end.

'Sigh of relief'

"After spending the better part of two months in trade war purgatory and with G20 done and dusted, risk markets have responded to Saturday's events in a reveller tone," said Stephen Innes at Vanguard Markets.

"Indeed, investors heaved a massive, but exhausted, sigh of relief that both the US and China opted to push the reset button and restart trade negotiations amidst other pleasantries -- now we'll have to see whether it all sticks."

Shanghai jumped 2.1 per cent in the morning while the Chinese yuan climbed to its strongest level in almost two months. Soft factory activity data indicated continued weakness in the world's number two economy, though analysts said the readings could press the central People's Bank of China to unveil fresh stimulus measures.

Tokyo ended the morning 1.8 per cent higher, Singapore rallied 1.2 per cent and Taipei was 1.5 per cent higher, with Sydney, Seoul, Wellington and Manila also higher. Hong Kong was closed for a public holiday.

Oil prices were also on a roll, with both main contracts jumping more than two per cent as the Trump-Xi agreement came with news that Russia and OPEC cartel kingpin Saudi Arabia had agreed at the G20 to extend a deal to limit output.

Innes added that "even with some long-term uncertainty on US-China trade leaking into the equation, I think medium-term risks to oil prices remained skewed to the upside, as Middle East tension continues to percolate, and we anticipate more easing from the PBoC. Both positives for oil prices".

The optimistic tone hit demand for safe-haven gold, which sank below $1,400.

Asian markets surged Monday after Donald Trump and Xi Jinping agreed to restart trade talks, reviving hopes of an end to their tariffs war, while oil prices also rallied on news that Saudi Arabia and Russia will extend their output caps.

Asian markets surged Monday after Donald Trump and Xi Jinping agreed to restart trade talks, reviving hopes of an end to their tariffs war, while oil prices also rallied on news that Saudi Arabia and Russia will extend their output caps. Trump's historic visit to North Korea, where he met leader Kim Jong Un, soothed geopolitical concerns and added to the upbeat mood on trading floors. After a highly anticipated meeting on the sidelines of the G20 summit Saturday, the US president said negotiations to resolve the standoff between the world's two biggest economies were "back on track" and threatened new levies on Chinese goods would be held off. Trump also signalled a softer position on Chinese telecom giant Huawei, a major bone of contention in the row, by saying US companies could sell equipment "where there's no great national security problem", White House economic advisor Larry Kudlow said Sunday. While there had been a quiet sense of optimism the talks would end with an agreement to return to the negotiating table, the apparent concession on Huawei took some by surprise and provided some extra buying support. The news was much-needed after Trump sparked volatility in early May with his shock decision to hit China with new tariffs and halt talks that had seemed to be nearing a positive end. 'Sigh of relief' "After spending the better part of two months in trade war purgatory and with G20 done and dusted, risk markets have responded to Saturday's events in a reveller tone," said Stephen Innes at Vanguard Markets. "Indeed, investors heaved a massive, but exhausted, sigh of relief that both the US and China opted to push the reset button and restart trade negotiations amidst other pleasantries -- now we'll have to see whether it all sticks." Shanghai jumped 2.1 per cent in the morning while the Chinese yuan climbed to its strongest level in almost two months. Soft factory activity data indicated continued weakness in the world's number two economy, though analysts said the readings could press the central People's Bank of China to unveil fresh stimulus measures. Tokyo ended the morning 1.8 per cent higher, Singapore rallied 1.2 per cent and Taipei was 1.5 per cent higher, with Sydney, Seoul, Wellington and Manila also higher. Hong Kong was closed for a public holiday. Oil prices were also on a roll, with both main contracts jumping more than two per cent as the Trump-Xi agreement came with news that Russia and OPEC cartel kingpin Saudi Arabia had agreed at the G20 to extend a deal to limit output. Innes added that "even with some long-term uncertainty on US-China trade leaking into the equation, I think medium-term risks to oil prices remained skewed to the upside, as Middle East tension continues to percolate, and we anticipate more easing from the PBoC. Both positives for oil prices". The optimistic tone hit demand for safe-haven gold, which sank below $1,400.

Asian markets surge on Trump-Xi breakthrough, oil rallies

China's state planning agency on Sunday said it has cut the number of sectors subject to foreign investment restrictions, as <a href="https://www.wionews.com/world/us-china-report-progress-in-beijing-trade-talks-206635">Beijing</a> moved to fulfil its promise to open major industries.

The loosening in curbs, though widely anticipated, comes after the United States and <a href="https://www.wionews.com/business-economy/us-recession-risk-rises-as-us-china-trade-tensions-heat-up-report-219279">China</a> agreed on the weekend to restart trade talks with <a href="https://www.wionews.com/opinions/us-china-trade-war-points-to-the-real-crisis-that-global-leaders-must-confront-at-g20-summit-231112">US President Donald Trump</a> offering concessions on tariffs and an easing of restrictions on tech company Huawei.

The National Development and Reform Commission (NDRC) said it has eased foreign investment curbs on sectors including petroleum and gas exploration and widened access to agriculture, mining and manufacturing.

NDRC published on its website the new, shorter so-called negative list that sets out industries where foreign investment is limited or prohibited.

The number of sectors and subsectors on the negative list was cut to 40 from 48 in the previous version, which was published in June last year. The new list takes effect on July 30.

The NDRC document said domestic shipping agencies, gas and heat pipelines in cities with more than 500,000 people, cinemas and performance agencies no longer needed to be controlled by Chinese entities. It also widened access to petroleum and gas exploration, agriculture and some metals resources exploration.

China has repeatedly promised to further open its markets to foreign investment but has stressed such decisions would be based on the economy's own needs and not due to external pressure.

It shortened the negative list last year, easing curbs on sectors including banking, the automotive and heavy industries, while also allowing 100% foreign ownership in some industries where ownership caps previously applied.

Foreign investment in China was previously assessed on a case-by-case basis with approval granted by the local branch of the commerce ministry. Under the negative list system, only investments in industries specified in the list are prohibited or subject to review.

Despite the reforms of recent years, foreign businesses say progress has been slow with foreign investment in many industries still restricted while fresh promises of greater access do little more than repeat earlier pledges.

China's state planning agency on Sunday said it has cut the number of sectors subject to foreign investment restrictions, as Beijing moved to fulfil its promise to open major industries.

China's state planning agency on Sunday said it has cut the number of sectors subject to foreign investment restrictions, as Beijing moved to fulfil its promise to open major industries. The loosening in curbs, though widely anticipated, comes after the United States and China agreed on the weekend to restart trade talks with US President Donald Trump offering concessions on tariffs and an easing of restrictions on tech company Huawei. The National Development and Reform Commission (NDRC) said it has eased foreign investment curbs on sectors including petroleum and gas exploration and widened access to agriculture, mining and manufacturing. NDRC published on its website the new, shorter so-called negative list that sets out industries where foreign investment is limited or prohibited. The number of sectors and subsectors on the negative list was cut to 40 from 48 in the previous version, which was published in June last year. The new list takes effect on July 30. The NDRC document said domestic shipping agencies, gas and heat pipelines in cities with more than 500,000 people, cinemas and performance agencies no longer needed to be controlled by Chinese entities. It also widened access to petroleum and gas exploration, agriculture and some metals resources exploration. China has repeatedly promised to further open its markets to foreign investment but has stressed such decisions would be based on the economy's own needs and not due to external pressure. It shortened the negative list last year, easing curbs on sectors including banking, the automotive and heavy industries, while also allowing 100% foreign ownership in some industries where ownership caps previously applied. Foreign investment in China was previously assessed on a case-by-case basis with approval granted by the local branch of the commerce ministry. Under the negative list system, only investments in industries specified in the list are prohibited or subject to review. Despite the reforms of recent years, foreign businesses say progress has been slow with foreign investment in many industries still restricted while fresh promises of greater access do little more than repeat earlier pledges.

China eases foreign investment curbs amid cooling trade tensions

Chinese President Xi Jinping recalls 'Ping-Pong' Diplomacy. Xi said, ''The small ball played a big role in moving world events.Xi upholds the cooperation over confrontation. U.S President Donald Trump said that He loves the Chinese Culture. Watch this video to know more.

No new U.S tariffs on Chinese products

China and the United States involved in a <a href="http://cms.wionews.com/world/g20-summit-us-china-high-stakes-bilateral-meeting-gets-underway-in-osaka-231356">prolonged trade war</a> agreed to restart trade talks at a high-stakes Xi-Trump trade meeting in Japan, news agency AFP reported quoting China state media Xinhua.&nbsp;

The report also said that the US has agreed not to impose new tariffs on its exports.&nbsp;

US President Donald Trump said trade meeting with China's President Xi Jinping was "excellent" with negotiations now "back on track".

"We had a very good meeting with President Xi of China... I would say excellent," Trump said after the talks on the sidelines of the G20 summit.

The crunch talks on the damaging trade war between the world's top two economies came on the sidelines of a meeting of the G20 in Japan's Osaka, with all eyes on whether the pair would agree a truce.

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Both sides were expected to issue official formal statements later, but Chinese state media said Washington had committed not to impose any new tariffs on Beijing's exports and that the two sides had agreed to restart trade and economic talks.

The outcome was likely to be seen as a win, with experts cautioning ahead of the meeting that a full agreement was unlikely but a truce that avoided a new tit-for-tat round of tariffs would be positive.

Trump has struck a conciliatory tone since his arrival in Japan for the G20 summit, despite saying China's economy was going "down the tubes" before he set out for Osaka, and appeared keen to reach an agreement.

(With inputs from AFP)

China and the United States involved in a prolonged trade war agreed to restart trade talks at a high-stakes Xi-Trump trade meeting in Japan, news agency AFP reported quoting China state media Xinhua.

China and the United States involved in a prolonged trade war agreed to restart trade talks at a high-stakes Xi-Trump trade meeting in Japan, news agency AFP reported quoting China state media Xinhua. The report also said that the US has agreed not to impose new tariffs on its exports. US President Donald Trump said trade meeting with China's President Xi Jinping was "excellent" with negotiations now "back on track". "We had a very good meeting with President Xi of China... I would say excellent," Trump said after the talks on the sidelines of the G20 summit. The crunch talks on the damaging trade war between the world's top two economies came on the sidelines of a meeting of the G20 in Japan's Osaka, with all eyes on whether the pair would agree a truce. × Both sides were expected to issue official formal statements later, but Chinese state media said Washington had committed not to impose any new tariffs on Beijing's exports and that the two sides had agreed to restart trade and economic talks. The outcome was likely to be seen as a win, with experts cautioning ahead of the meeting that a full agreement was unlikely but a truce that avoided a new tit-for-tat round of tariffs would be positive. Trump has struck a conciliatory tone since his arrival in Japan for the G20 summit, despite saying China's economy was going "down the tubes" before he set out for Osaka, and appeared keen to reach an agreement. (With inputs from AFP)

US-China agree to restart trade talks after Xi-Trump meeting on G20 sidelines: Report

US-based tech giant <a href="https://www.wionews.com/world/apple-explores-moving-15-30-of-production-capacity-from-china-to-southeast-asia-report-228703">Apple</a> will shift production of its Mac Pro computers to China, said a report by The Wall Street Journal on Friday.

That desktop is the only major Apple device produced in the US. It is produced in Texas.

According to the report, Apple has chosen a Taiwanese contractor, Quanta Computer Inc, to manufacture the $6,000 desktop computer near Shanghai.&nbsp;

The shift comes at amid the escalating trade war between the US and China. US President Trump is threatening to slap tariffs on almost all imports from China, which would raise prices for US consumers.

Mac Pro is a niche product for Apple and not a high volume seller. But the shift could still anger Trump, who has been pressing US companies in general and Apple specifically to make things in America.

Meanwhile, news agency Reuters had reported that earlier this month that the company has asked its major suppliers to asses the cost implications of moving 15-30 per cent of their production capacity from China to Southeast Asia.

Key iPhone assemblers Foxconn, Pegatron Corp, Wistron Corp, major MacBook maker Quanta Computer Inc, iPad maker Compal Electronics Inc, and AirPods makers Inventec Corp, Luxshare-ICT and Goertek have been asked to evaluate options outside of China, Reuters had reported citing Nikkei Asian Review report.

The countries being considered to include Mexico, India, Vietnam, Indonesia and Malaysia. India and Vietnam are among the favourites for smartphones, Nikkei said, citing sources who did not want to be identified as the discussions are private.

US-based tech giant Apple will shift production of its Mac Pro computers to China, said a report by The Wall Street Journal on Friday. That desktop is the only major Apple device produced in the US.

US-based tech giant Apple will shift production of its Mac Pro computers to China, said a report by The Wall Street Journal on Friday. That desktop is the only major Apple device produced in the US. It is produced in Texas. According to the report, Apple has chosen a Taiwanese contractor, Quanta Computer Inc, to manufacture the $6,000 desktop computer near Shanghai. The shift comes at amid the escalating trade war between the US and China. US President Trump is threatening to slap tariffs on almost all imports from China, which would raise prices for US consumers. Mac Pro is a niche product for Apple and not a high volume seller. But the shift could still anger Trump, who has been pressing US companies in general and Apple specifically to make things in America. Meanwhile, news agency Reuters had reported that earlier this month that the company has asked its major suppliers to asses the cost implications of moving 15-30 per cent of their production capacity from China to Southeast Asia. Key iPhone assemblers Foxconn, Pegatron Corp, Wistron Corp, major MacBook maker Quanta Computer Inc, iPad maker Compal Electronics Inc, and AirPods makers Inventec Corp, Luxshare-ICT and Goertek have been asked to evaluate options outside of China, Reuters had reported citing Nikkei Asian Review report. The countries being considered to include Mexico, India, Vietnam, Indonesia and Malaysia. India and Vietnam are among the favourites for smartphones, Nikkei said, citing sources who did not want to be identified as the discussions are private.

Apple to move Mac Pro production to China: Report

US President Donald Trump said Saturday he was ready for a "historic" deal with <a href="https://www.wionews.com/world/us-senate-backs-massive-defense-bill-targets-china-sets-iran-vote-231163">China</a> as he kicked off a hotly awaited meeting with China's Xi Jinping, with the world watching to see if they can strike a deal over their long-running trade war.

After a first day dominated by public shows of bonhomie, all eyes at the G20 turned to a pivotal showdown between the two rivals that has huge implications for the global economy.

The meeting kicked off in a positive tone, with Trump saying,&nbsp;"It would be historic if we could do a fair trade deal... We are totally open to it."

For his part, Xi said that "dialogue" was better than confrontation after both sides had slapped tit-for-tat tariffs on each other's goods.

Even before Donald Trump sat down with his Chinese counterpart, the US president grabbed the headlines with a surprise tweet<a href="https://www.wionews.com/world/donald-trump-offers-to-meet-north-koreas-kim-jong-un-at-dmz-this-weekend-231334"> inviting Kim Jong Un to meet for a handshake at the demilitarised zone</a> between North and South Korea.

Trump has said he expects a "productive" meeting but has also warned he is prepared to slap tariffs on all Chinese imports if no deal can be struck on the sidelines of the G20.

Trump had earlier confirmed that the leaders would discuss Chinese telecoms firm Huawei, which Washington has banned over security concerns. Beijing reportedly wants the restrictions lifted as part of any trade truce.

Experts believe the most that will be agreed is a truce and a pledge to keep talking, although markets are not ruling out a complete collapse or a surprise breakthrough given the US president's mercurial nature.

Gravitas: All the action on the sidelines of G20

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The first tete-a-tete between the leaders of the world's top two economies since the last G20 in December has cast a long shadow over this year's gathering in Osaka, where differences over climate change have also been laid bare.

China's state-run Xinhua news agency said the meeting was a "unique opportunity for the two sides to find new common ground in easing trade tensions and bring the troubled ties back onto the right track".

However, the commentary also warned the US "needs to place itself on an equal footing with China" and "accommodate China's legitimate concerns".

Economists say that a lengthy trade war could be crippling for the global economy at a time when headwinds including increased geopolitical tensions and Brexit are blowing hard.

On Friday, the European Union and the South American trade bloc Mercosur sealed a blockbuster trade deal after 20 years of talks, with European Commission President Jean-Claude Juncker hailing it as a "strong message" in support of "rules-based trade."

Heatwave

Trade is far from the only contentious issue on the table, with climate change proving another major sticking point.

Japan is seeking consensus between EU leaders who want strong action and an American administration committed to withdrawing from the Paris climate agreement.

But diplomatic sources said Washington was trying to win countries over to its side and Japanese officials acknowledged they faced a diplomatic uphill battle.

By Saturday morning, almost no language on climate change had been agreed and doubts lingered over whether a final statement would even see the light of day.

A diplomatic source said it had been a "difficult" night, with the American negotiator pushing a "very tough position" and a group including France standing united against watering down the climate language in the final statement.&nbsp;

Trump has dominated the headlines from the summit, and once again caught observers by surprise by tweeting early Saturday that he was open to meeting Kim while in South Korea this weekend.

"If Chairman Kim of North Korea sees this, I would meet him at the Border/DMZ just to shake his hand and say Hello(?)!," he wrote.

Several experts, however, said the focus on Trump and the talks with China struck at the heart of the G20 format, created to craft a united global response to the Lehman Brothers crisis.

"With much of the fate of the global economy and the likely direction of markets hanging on the outcome of this pivotal Trump-Xi meeting, we think things will get worse before they get better," said ING Economics.

And the focus on bilateral meetings on the sidelines of the summit once again sparked doubts about the future of the gathering, experts said.

"The G20 was created as a forum for cooperation and the question may well be 'have we reached the point where it can no longer serve that purpose'," Thomas Bernes from the Centre for International Governance Innovation told AFP.

US President Donald Trump said Saturday he was ready for a "historic" deal with China as he kicked off a hotly awaited meeting with China's Xi Jinping, with the world watching to see if they can strike a deal over their long-running trade war.

US President Donald Trump said Saturday he was ready for a "historic" deal with China as he kicked off a hotly awaited meeting with China's Xi Jinping, with the world watching to see if they can strike a deal over their long-running trade war. After a first day dominated by public shows of bonhomie, all eyes at the G20 turned to a pivotal showdown between the two rivals that has huge implications for the global economy. The meeting kicked off in a positive tone, with Trump saying, "It would be historic if we could do a fair trade deal... We are totally open to it." For his part, Xi said that "dialogue" was better than confrontation after both sides had slapped tit-for-tat tariffs on each other's goods. Even before Donald Trump sat down with his Chinese counterpart, the US president grabbed the headlines with a surprise tweet inviting Kim Jong Un to meet for a handshake at the demilitarised zone between North and South Korea. Trump has said he expects a "productive" meeting but has also warned he is prepared to slap tariffs on all Chinese imports if no deal can be struck on the sidelines of the G20. Trump had earlier confirmed that the leaders would discuss Chinese telecoms firm Huawei, which Washington has banned over security concerns. Beijing reportedly wants the restrictions lifted as part of any trade truce. Experts believe the most that will be agreed is a truce and a pledge to keep talking, although markets are not ruling out a complete collapse or a surprise breakthrough given the US president's mercurial nature. Gravitas: All the action on the sidelines of G20 × The first tete-a-tete between the leaders of the world's top two economies since the last G20 in December has cast a long shadow over this year's gathering in Osaka, where differences over climate change have also been laid bare. China's state-run Xinhua news agency said the meeting was a "unique opportunity for the two sides to find new common ground in easing trade tensions and bring the troubled ties back onto the right track". However, the commentary also warned the US "needs to place itself on an equal footing with China" and "accommodate China's legitimate concerns". Economists say that a lengthy trade war could be crippling for the global economy at a time when headwinds including increased geopolitical tensions and Brexit are blowing hard. On Friday, the European Union and the South American trade bloc Mercosur sealed a blockbuster trade deal after 20 years of talks, with European Commission President Jean-Claude Juncker hailing it as a "strong message" in support of "rules-based trade." Heatwave Trade is far from the only contentious issue on the table, with climate change proving another major sticking point. Japan is seeking consensus between EU leaders who want strong action and an American administration committed to withdrawing from the Paris climate agreement. But diplomatic sources said Washington was trying to win countries over to its side and Japanese officials acknowledged they faced a diplomatic uphill battle. By Saturday morning, almost no language on climate change had been agreed and doubts lingered over whether a final statement would even see the light of day. A diplomatic source said it had been a "difficult" night, with the American negotiator pushing a "very tough position" and a group including France standing united against watering down the climate language in the final statement. Trump has dominated the headlines from the summit, and once again caught observers by surprise by tweeting early Saturday that he was open to meeting Kim while in South Korea this weekend. "If Chairman Kim of North Korea sees this, I would meet him at the Border/DMZ just to shake his hand and say Hello(?)!," he wrote. Several experts, however, said the focus on Trump and the talks with China struck at the heart of the G20 format, created to craft a united global response to the Lehman Brothers crisis. "With much of the fate of the global economy and the likely direction of markets hanging on the outcome of this pivotal Trump-Xi meeting, we think things will get worse before they get better," said ING Economics. And the focus on bilateral meetings on the sidelines of the summit once again sparked doubts about the future of the gathering, experts said. "The G20 was created as a forum for cooperation and the question may well be 'have we reached the point where it can no longer serve that purpose'," Thomas Bernes from the Centre for International Governance Innovation told AFP.

G20 Summit: Trump says open to 'historic' trade deal with China

Prime Minister Narendra Modi met with a whole host of leaders Chinese President Xi Jinping and Turkish President Recep Tayyip Erdoğan among others on the second and final day of the 14th G20 Summit before his departure to New Delhi on Saturday.&nbsp;

Meeting with President Xi came towards the end of the summit and both the leaders were seen interacting with each other.

During PM Modi's bilateral with Erdogan, the latter raised his country's deal with Russia for S400. The US has threatened sanctions on Ankara if Turkey goes ahead with the deal.

External Affairs spokesperson Raveesh Kumar said, "There was a general discussion as to how the two countries can cooperate in defence cooperation and see on the possibility of working together".

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Kithana acha he Modi! <a href="https://twitter.com/hashtag/G20OsakaSummit?src=hash&amp;ref_src=twsrc%5Etfw">#G20OsakaSummit</a> <a href="https://t.co/BC6DyuX4lf">pic.twitter.com/BC6DyuX4lf</a>
— Scott Morrison (@ScottMorrisonMP) <a href="https://twitter.com/ScottMorrisonMP/status/1144754448587079680?ref_src=twsrc%5Etfw">June 28, 2019</a></blockquote>
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Modi started the day with meetings with Brazilian President Jair M. Bolsonaro and Indonesian President Joko Widodo. During the meet with the Indonesian president, the focus was on defence, Indo-Pacific and trade.&nbsp;

PM had visited Indonesia last year and established a comprehensive strategic partnership. Both are also looking at maritime connectivity, especially, between the westernmost Indonesian province of Aceh and India's the Andaman Islands.

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Mate, I’m stoked about the energy of our bilateral relationship! <a href="https://twitter.com/ScottMorrisonMP?ref_src=twsrc%5Etfw">@ScottMorrisonMP</a> <a href="https://t.co/RdvaWsqlwY">https://t.co/RdvaWsqlwY</a>
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Modi's last bilateral meeting was with Australian Prime Minister Scott Morrison. Earlier in the day, Scot Morrison tweeted, "Kithana acha he Modi!", to which PM Modi responded, "Mate, I’m stoked about the energy of our bilateral relationship!"

All in all, the PM had nine bilaterals and 8 pull-asides at the G20 besides participating in two trilaterals - JAI, RIC - and the BRICS informal meet.

Prime Minister Narendra Modi met with a whole host of leaders Chinese President Xi Jinping and Turkish President Recep Tayyip Erdoğan among others on the second and final day of the 14th G20 Summit before his departure to New Delhi on Saturday.

Prime Minister Narendra Modi met with a whole host of leaders Chinese President Xi Jinping and Turkish President Recep Tayyip Erdoğan among others on the second and final day of the 14th G20 Summit before his departure to New Delhi on Saturday. Meeting with President Xi came towards the end of the summit and both the leaders were seen interacting with each other. During PM Modi's bilateral with Erdogan, the latter raised his country's deal with Russia for S400. The US has threatened sanctions on Ankara if Turkey goes ahead with the deal. External Affairs spokesperson Raveesh Kumar said, "There was a general discussion as to how the two countries can cooperate in defence cooperation and see on the possibility of working together". Kithana acha he Modi! #G20OsakaSummit pic.twitter.com/BC6DyuX4lf — Scott Morrison (@ScottMorrisonMP) June 28, 2019 × Modi started the day with meetings with Brazilian President Jair M. Bolsonaro and Indonesian President Joko Widodo. During the meet with the Indonesian president, the focus was on defence, Indo-Pacific and trade. PM had visited Indonesia last year and established a comprehensive strategic partnership. Both are also looking at maritime connectivity, especially, between the westernmost Indonesian province of Aceh and India's the Andaman Islands. Mate, I’m stoked about the energy of our bilateral relationship! @ScottMorrisonMP https://t.co/RdvaWsqlwY — Narendra Modi (@narendramodi) June 29, 2019 × Modi's last bilateral meeting was with Australian Prime Minister Scott Morrison. Earlier in the day, Scot Morrison tweeted, "Kithana acha he Modi!", to which PM Modi responded, "Mate, I’m stoked about the energy of our bilateral relationship!" All in all, the PM had nine bilaterals and 8 pull-asides at the G20 besides participating in two trilaterals - JAI, RIC - and the BRICS informal meet.

PM Modi holds 20 bilaterals, pull-asides on day 2 of G20 Summit 

US President Donald Trump made clear on Friday that trade was a top priority at a summit of leaders of Group of 20 nations, as Chinese leader Xi Jinping warned against rising protectionism and India and Russia defended multilateral trade rules.

Ahead of talks with Japanese Prime Minister Shinzo Abe and Indian Prime Minister Narendra Trump said he would discuss trade, days after criticising the US-Japan security treaty and demanding New Delhi withdraw retaliatory tariffs.

"I think we’re going to have some very big things to announce. Very big trade deal. We’re doing some very big things with India in terms of trade, in terms of manufacturing," Trump said at the start of talks with Modi.

Trump also said he would discuss Chinese telecoms equipment maker Huawei with the Indian leader.

"We actually sell Huawei many of its parts," Trump said. "So we’re going to be discussing that and also how India fits in. And we’ll be discussing Huawei."

A White House official said Trump wanted to promote to Abe and Modi "a resilient quality secure infrastructure" — a reference to the US push with allies to keep the Chinese company out of next-generation telecoms networks.

Washington has pressed its allies to shun Huawei in their fifth generation, or 5G, networks on security grounds, but has also suggested it could be a factor in a trade deal with Chinese President Xi Jinping, whom Trump meets on Saturday.

European Commission President Jean-Claude Junker flagged the shadow cast by the US-China trade feud.

"The trade relations between China and the United States are difficult, they are contributing to the slowdown of the global economy," he told a news conference.

Xi also warned about the protectionist steps he said some developed countries were taking.

"All this is destroying the global trade order... This also impacts common interests of our countries, overshadows the peace and stability worldwide," Xi told a gathering of leaders of the BRICS grouping of nations on the sidelines of the G20 meet.

Defending world trade rules

Modi at the same meeting called for a focus on reforming the World Trade Organisation and Putin decried what he called efforts to destroy the Geneva-based body.

"We consider counter-productive any attempts to destroy WTO or to lower its role," Putin said.

The situation of the global economy was worrying as global trade was feeling the effect of "protectionism (and) politically motivated restrictions," he added.

Trump also flagged trade at the start of his talks with Abe.

"We're going to be talking about a lot of things and we're also going to be talking about a lot of trade," Trump said.

"I appreciate the fact that you're sending many automobile companies into Michigan and Ohio and Pennsylvania and North Carolina," referring to US states critical to his effort to win re-election next year.

Trump said the two leaders would also discuss Japanese purchases of US military equipment, although a Japanese official said later the topic did not come up.

Tokyo and Washington are engaged in difficult trade talks as Trump's administration seeks to lower the US trade deficit.

Japanese Economy Minister Toshimitsu Motegi and US Trade Representative Robert Lighthizer were to meet later in Osaka.

Abe welcomed Trump's visit, calling their frequent meetings "proof of the strong US-Japan alliance".

Trump renewed his criticism of the US-Japan security alliance this week as unbalanced.

"We will go in and we will protect them and we will fight with our lives and with our treasure," he said in an interview on Wednesday with Fox television.

"We will fight at all costs, right? But if we’re attacked, Japan doesn’t have to help us at all. They can watch it on a Sony television, the attack."

Under the decades-old US-Japan security treaty, the United States has committed to defending Japan, which renounced the right to wage war after its defeat in World War Two.

Japan in return provides military bases that Washington uses to project power deep into Asia, including the biggest concentration of US Marines outside the United States on Okinawa, and the deployment of an aircraft carrier strike group at the Yokosuka naval base near Tokyo.

After the Trump-Abe talks, a Japanese official told reporters the leaders had agreed to accelerate trade talks and had agreed the alliance was stronger than ever.

Trump, praised German Chancellor Angela Merkel as a "great friend of mine" as well as trade between their two countries.

US President Donald Trump made clear on Friday that trade was a top priority at a summit of leaders of Group of 20 nations, as Chinese leader Xi Jinping warned against rising protectionism and India and Russia defended multilateral trade rules.

US President Donald Trump made clear on Friday that trade was a top priority at a summit of leaders of Group of 20 nations, as Chinese leader Xi Jinping warned against rising protectionism and India and Russia defended multilateral trade rules. Ahead of talks with Japanese Prime Minister Shinzo Abe and Indian Prime Minister Narendra Trump said he would discuss trade, days after criticising the US-Japan security treaty and demanding New Delhi withdraw retaliatory tariffs. "I think we’re going to have some very big things to announce. Very big trade deal. We’re doing some very big things with India in terms of trade, in terms of manufacturing," Trump said at the start of talks with Modi. Trump also said he would discuss Chinese telecoms equipment maker Huawei with the Indian leader. "We actually sell Huawei many of its parts," Trump said. "So we’re going to be discussing that and also how India fits in. And we’ll be discussing Huawei." A White House official said Trump wanted to promote to Abe and Modi "a resilient quality secure infrastructure" — a reference to the US push with allies to keep the Chinese company out of next-generation telecoms networks. Washington has pressed its allies to shun Huawei in their fifth generation, or 5G, networks on security grounds, but has also suggested it could be a factor in a trade deal with Chinese President Xi Jinping, whom Trump meets on Saturday. European Commission President Jean-Claude Junker flagged the shadow cast by the US-China trade feud. "The trade relations between China and the United States are difficult, they are contributing to the slowdown of the global economy," he told a news conference. Xi also warned about the protectionist steps he said some developed countries were taking. "All this is destroying the global trade order... This also impacts common interests of our countries, overshadows the peace and stability worldwide," Xi told a gathering of leaders of the BRICS grouping of nations on the sidelines of the G20 meet. Defending world trade rules Modi at the same meeting called for a focus on reforming the World Trade Organisation and Putin decried what he called efforts to destroy the Geneva-based body. "We consider counter-productive any attempts to destroy WTO or to lower its role," Putin said. The situation of the global economy was worrying as global trade was feeling the effect of "protectionism (and) politically motivated restrictions," he added. Trump also flagged trade at the start of his talks with Abe. "We're going to be talking about a lot of things and we're also going to be talking about a lot of trade," Trump said. "I appreciate the fact that you're sending many automobile companies into Michigan and Ohio and Pennsylvania and North Carolina," referring to US states critical to his effort to win re-election next year. Trump said the two leaders would also discuss Japanese purchases of US military equipment, although a Japanese official said later the topic did not come up. Tokyo and Washington are engaged in difficult trade talks as Trump's administration seeks to lower the US trade deficit. Japanese Economy Minister Toshimitsu Motegi and US Trade Representative Robert Lighthizer were to meet later in Osaka. Abe welcomed Trump's visit, calling their frequent meetings "proof of the strong US-Japan alliance". Trump renewed his criticism of the US-Japan security alliance this week as unbalanced. "We will go in and we will protect them and we will fight with our lives and with our treasure," he said in an interview on Wednesday with Fox television. "We will fight at all costs, right? But if we’re attacked, Japan doesn’t have to help us at all. They can watch it on a Sony television, the attack." Under the decades-old US-Japan security treaty, the United States has committed to defending Japan, which renounced the right to wage war after its defeat in World War Two. Japan in return provides military bases that Washington uses to project power deep into Asia, including the biggest concentration of US Marines outside the United States on Okinawa, and the deployment of an aircraft carrier strike group at the Yokosuka naval base near Tokyo. After the Trump-Abe talks, a Japanese official told reporters the leaders had agreed to accelerate trade talks and had agreed the alliance was stronger than ever. Trump, praised German Chancellor Angela Merkel as a "great friend of mine" as well as trade between their two countries.

Trump talks trade at G20, China's Xi warns against rising protectionism

Trade talks between Donald Trump and Xi Jinping are expected to dominate the upcoming G20 summit in Osaka, where the two leaders are expected to meet on the final day of the event.

Trump-Xi trade talks to dominate G20 Summit

US President Donald Trump said on Wednesday that a trade deal with Chinese President Xi Jinping was possible this weekend but he is prepared to impose US&nbsp;tariffs on virtually all remaining Chinese imports if the two countries continue to disagree.

Trump, who departed for the G20 leaders summit in Osaka, Japan, on Wednesday, also raised the possibility that he may impose a lower, 10% duty on a $300 billion list of Chinese imports, instead of the proposed 25% rate.

Trump is expected to meet with Xi on Saturday in Osaka, a conversation that could revive stalled negotiations between the world's two biggest economies or launch a much deeper, costlier trade war that would drag down global growth and roil financial markets.

"It's absolutely possible. ... We have to get a good deal," Trump said in an interview with Fox Business Network. "It's possible that we'll make a deal, but I'm also very happy where we are now."

Relations between Washington and Beijing have spiraled downward since talks collapsed in May, when the United States accused China of reneging on pledges to reform its economy.

Trump said Chinese leaders "want to make a deal. They want to make a deal more than I do."

US&nbsp;Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin are due to meet with Chinese Vice Premier Liu He ahead of the Trump-Xi meeting. US&nbsp;Commerce Secretary Wilbur Ross also was added to the U.S. delegation at the last minute at Trump's request, a senior U.S. official said at a Washington event where Ross had been scheduled to speak.

Some Chinese officials who were not previously part of China's delegation were also applying for Japanese visas, an industry source briefed on the matter said, adding that this was a possible sign of momentum for the Trump-Xi meeting.

Shortly after Trump returns from the Osaka summit, he will be in a position to impose a 25% tariff on $300 billion worth of Chinese consumer goods from cellphones, laptop and tablet computers to tube socks and baby carriers.

A public comment period on the tariffs ends on July 2 following seven days of public hearings in which US&nbsp;companies large and small begged to be spared from the tariffs and warned of hardships in shifting production out of China..

"I would do additional tariffs, very substantial additional tariffs, if that doesn't work, if we don't make a deal," Trump said on Wednesday. But he added that he could consider lowering the duty to 10% from the proposed 25%.

Administration officials have said that a 10 percent tariff is more easily offset by Chinese companies absorbing the added costs and by declines in the value of China's yuan currency.

China and the United States have already imposed tariffs of up to 25% on hundreds of billions of dollars of each other's goods in a trade war that has lasted nearly a year.

More than half of Chinese consumers have recently avoided U.S.-made products in support of their country, according to a new poll conducted by London-based advisory firm Brunswick. The poll of 1,000 Chinese and 1,000 American consumers showed that 68 percent of Chinese respondents said their opinions of American firms had become more negative, while 59 percent of Americans had an unfavorable opinion of China-based companies.

Global trade tensions contributed to a 2.1% drop in the April US&nbsp;trade deficit to $50.8 billion as both imports and exports fell, the Commerce Department reported on Wednesday. But the April U.S. trade deficit with China jumped nearly 30% to $26.9 billion, while the trade gap with Mexico fell sharply.

Fitch Ratings on Wednesday forecast that imposing a 25% tariff on the $300 billion in Chinese goods would chop 0.4 percent from world economic output. The International Monetary Fund has forecast a 0.5 percent reduction, equivalent to erasing South Africa's economy.

Trump said China knows what the United States needs for a trade deal, and pushed for China to return to the negotiating table with the same concessions they had made before talks abruptly ended in May.

The two sides could agree not to impose new tariffs as a goodwill gesture to get negotiations going, a US&nbsp;official said on Tuesday.

'Drive by tariffs'

Trump has bipartisan support on taking a tough stance on China, although not for his use of tariffs as a tool to exert pressure on Beijing.

A senior Democrat said on Wednesday he hoped the standoff with China would result in lasting changes.

"We’ve gone this far - we ought to be working to try and have some of the structural changes, some of the advantages, some of the (intellectual property) protections, and China living up to its obligations under the (World Trade Organization)," said US&nbsp;Representative Earl Blumenauer.

Blumenauer, who chairs the House of Representatives' Ways and Means trade subcommittee, said he disagreed with what he called Trump's "drive-by tariffs" and hoped the president would not accept a deal that simply involved selling more goods to China rather than changing bilateral terms of trade.

Trump said if Washington was unable to reach a deal, his plan was to reduce business with China. Asked about companies relocating production from China to Vietnam, he said Vietnam treated the United States even worse than China.

The United States is cracking down on companies that have used countries such as Vietnam and Cambodia as staging posts to ship goods from China to the United States without paying tariffs.

US President Donald Trump said on Wednesday that a trade deal with Chinese President Xi Jinping was possible this weekend but he is prepared to impose US tariffs on virtually all remaining Chinese imports if the two countries continue to disagree.

US President Donald Trump said on Wednesday that a trade deal with Chinese President Xi Jinping was possible this weekend but he is prepared to impose US tariffs on virtually all remaining Chinese imports if the two countries continue to disagree. Trump, who departed for the G20 leaders summit in Osaka, Japan, on Wednesday, also raised the possibility that he may impose a lower, 10% duty on a $300 billion list of Chinese imports, instead of the proposed 25% rate. Trump is expected to meet with Xi on Saturday in Osaka, a conversation that could revive stalled negotiations between the world's two biggest economies or launch a much deeper, costlier trade war that would drag down global growth and roil financial markets. "It's absolutely possible. ... We have to get a good deal," Trump said in an interview with Fox Business Network. "It's possible that we'll make a deal, but I'm also very happy where we are now." Relations between Washington and Beijing have spiraled downward since talks collapsed in May, when the United States accused China of reneging on pledges to reform its economy. Trump said Chinese leaders "want to make a deal. They want to make a deal more than I do." US Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin are due to meet with Chinese Vice Premier Liu He ahead of the Trump-Xi meeting. US Commerce Secretary Wilbur Ross also was added to the U.S. delegation at the last minute at Trump's request, a senior U.S. official said at a Washington event where Ross had been scheduled to speak. Some Chinese officials who were not previously part of China's delegation were also applying for Japanese visas, an industry source briefed on the matter said, adding that this was a possible sign of momentum for the Trump-Xi meeting. Shortly after Trump returns from the Osaka summit, he will be in a position to impose a 25% tariff on $300 billion worth of Chinese consumer goods from cellphones, laptop and tablet computers to tube socks and baby carriers. A public comment period on the tariffs ends on July 2 following seven days of public hearings in which US companies large and small begged to be spared from the tariffs and warned of hardships in shifting production out of China.. "I would do additional tariffs, very substantial additional tariffs, if that doesn't work, if we don't make a deal," Trump said on Wednesday. But he added that he could consider lowering the duty to 10% from the proposed 25%. Administration officials have said that a 10 percent tariff is more easily offset by Chinese companies absorbing the added costs and by declines in the value of China's yuan currency. China and the United States have already imposed tariffs of up to 25% on hundreds of billions of dollars of each other's goods in a trade war that has lasted nearly a year. More than half of Chinese consumers have recently avoided U.S.-made products in support of their country, according to a new poll conducted by London-based advisory firm Brunswick. The poll of 1,000 Chinese and 1,000 American consumers showed that 68 percent of Chinese respondents said their opinions of American firms had become more negative, while 59 percent of Americans had an unfavorable opinion of China-based companies. Global trade tensions contributed to a 2.1% drop in the April US trade deficit to $50.8 billion as both imports and exports fell, the Commerce Department reported on Wednesday. But the April U.S. trade deficit with China jumped nearly 30% to $26.9 billion, while the trade gap with Mexico fell sharply. Fitch Ratings on Wednesday forecast that imposing a 25% tariff on the $300 billion in Chinese goods would chop 0.4 percent from world economic output. The International Monetary Fund has forecast a 0.5 percent reduction, equivalent to erasing South Africa's economy. Trump said China knows what the United States needs for a trade deal, and pushed for China to return to the negotiating table with the same concessions they had made before talks abruptly ended in May. The two sides could agree not to impose new tariffs as a goodwill gesture to get negotiations going, a US official said on Tuesday. 'Drive by tariffs' Trump has bipartisan support on taking a tough stance on China, although not for his use of tariffs as a tool to exert pressure on Beijing. A senior Democrat said on Wednesday he hoped the standoff with China would result in lasting changes. "We’ve gone this far - we ought to be working to try and have some of the structural changes, some of the advantages, some of the (intellectual property) protections, and China living up to its obligations under the (World Trade Organization)," said US Representative Earl Blumenauer. Blumenauer, who chairs the House of Representatives' Ways and Means trade subcommittee, said he disagreed with what he called Trump's "drive-by tariffs" and hoped the president would not accept a deal that simply involved selling more goods to China rather than changing bilateral terms of trade. Trump said if Washington was unable to reach a deal, his plan was to reduce business with China. Asked about companies relocating production from China to Vietnam, he said Vietnam treated the United States even worse than China. The United States is cracking down on companies that have used countries such as Vietnam and Cambodia as staging posts to ship goods from China to the United States without paying tariffs.

Trump says trade deal 'possible' with China's Xi, tariffs could be lower

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