Published: Thu, January 10, 2019
Business | By Eloise Houston

China-US trade talks end on positive note

China-US trade talks end on positive note

China responded by imposing penalties on $110 billion of American goods, slowing customs clearance for USA companies and suspending issuing licenses in finance and other businesses.

Additionally, the USA and China will meet for a third day on Wednesday.

China is keen to put an end to its trade dispute with the United States but will not make any "unreasonable concessions" and any agreement must involve compromise on both sides, the China Daily, a state newspaper, said on Wednesday.

The extra day of talks came amid signs of progress on issues including purchases of USA farm and energy commodities and increased access to China's markets.

A combination of lower shipping costs and lower domestic demand will boost US crude oil exports to Asia, Reuters reports, citing sources from the commodity trading and shipping industries.

"The U.S. feels uncomfortable with China's rapid development, and can't adapt to its own declining influence", wrote Chen Yonglong in the state-run China Daily". Europe, Japan and other trading partners have echoed Washington's complaints that those violate Beijing's market-opening obligations.

Speaking at a daily news briefing in Beijing, Chinese foreign ministry spokesman Lu Kang confirmed both sides had agreed to extend the talks beyond Monday and Tuesday as originally scheduled.

Ted McKinney, U.S. under secretary of agriculture for trade and foreign agricultural affairs, said the U.S. trade delegation would return to the United States later on Wednesday after a "good few days".

"Asian stocks jumped after trade talks were extended for an unscheduled third day, fueling hopes that the world's two largest economies may soon reach a trade deal, putting an end to months of tariffs on each other's goods", reports NPR's Shanghai-based correspondent Rob Schmitz. American leaders also worry they might erode United States industrial leadership.

Beijing also faces pressure over technology from the European Union.

Companies that have been disappointed by Beijing's failure or delays in carrying out commitments want an enforcement mechanism with "some kind of penalty for not doing what they promised", said Parker. "It's probably going to take a little longer". They complain China's companies are treated unfairly in national security reviews of proposed corporate acquisitions, though nearly all deals are approved unchanged. Forecasters expect American orders to slump this year.

The talks went ahead despite tensions over the arrest of a Chinese tech executive in Canada on US charges related to possible violations of trade sanctions against Iran.

The American delegation was led by one of Lighthizer's deputies, Jeffrey D. Gerrish.

The American delegation is led by a deputy USA trade representative, Jeffrey Gerrish, and includes agriculture, energy, commerce, treasury and State Department officials.

The talks are occurring as Chinese growth - 6.5 percent in the July-to-September period - fell to its lowest point in a decade. "We have firm confidence in the strong long-term fundamentals of the Chinese economy".

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