United States negotiators in Beijing for trade war talks

Muriel Colon
January 8, 2019

Ahead of US-China trade talks set for Monday and Tuesday, China's Commerce Ministry said in a statement that the renewed negotiations over the ongoing trade row would include "positive and constructive discussions".

Chinese and American officials began talks Monday aimed at ending a bruising tradebattle between the world's two biggest economies, as Beijing complained over the sighting of a US warship in what it said were Chinese waters.

"From the start, we've felt that the trade friction between China and the United States is not beneficial to anyone, or the global economy".

"Their economy's not doing well", Mr. Trump told reporters at the White House. "I don't think it will proceed that fast".

USS McCampbell, the destroyer, carried out a new freedom of navigation operation, sailing within 12 nautical miles of islands in the Paracel Islands group in the South China Sea in what the U.S. Pacific Fleet said was an operation to "to challenge excessive maritime claims". They complain China's companies are treated unfairly in national security reviews of proposed corporate acquisitions, though nearly all deals are approved unchanged.

USA and Chinese officials have begun talks aimed at ending the trade war that has imposed hundreds of billions of dollars in tariffs over the past year.

Fears of a global slowdown and weaker corporate earnings - exacerbated by billions of dollars in tit-for-tat tariffs between the U.S. and China - have led to a sharp pullback on markets over the last few months. Back then, the two leaders announced a 90-day truce on new tariffs, which is set to expire on March 1.

US stocks were poised to open steady following Friday's bumper gains, with Dow futures up 0.1 percent and the broader S&P 500 futures pointing to a 0.1 percent fall. All eyes are on trade talks in Beijing, where American and Chinese officials are trying to resolve a trade dispute that has dampened the outlook of businesses and the global economy. Numerous practices the administration has objected to, such as subsidizing national champion businesses, are at the very heart of China's state-centric system of economic development.

He declined to reveal further information as the talks were underway.

Beijing suspended extra tariffs on US-made cars and auto parts for three months, while a major state grain stockpiler made purchases of American soybeans.

The sell-off dropped Apple to fourth place in terms of United States companies by market capitalization.

"It certainly has hurt the Chinese economy", Ross told CNBC.

The protracted trade war between the top two economies of the world is seen by many as a battle for global leadership. "Instead, the tariffs and continued uncertainty over the trade war have increased costs for those who can afford it least, and harmed American companies, farmers, and workers along the way".

Chinese exports to the USA held up through late 2018 despite Mr. Trump's tariffs.

He added that it would be easiest to tackle immediate trade, but harder to resolve enforcement issues and structural reforms such as intellectual property rights and market access.

"This trade fight couldn't have come at a worse time for China".

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