Weak point in China economic system offers Beijing incentive for commerce deal

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-China trade talks in Beijing are progressing well, as Chinese authorities planned to give a statement following the latest round of negotiations.

The meetings mark the first time representatives from the US and China have met face-to-face Trump and President Xi declared a 90-day ceasefire in the US-China trade war on the sidelines of the G20 Summit in Argentina.

"Talks with China are going very well!"

"The talks also focused on China's pledge to purchase a substantial amount of agricultural, energy, manufactured, and other products and services from the United States", the USTR said.

Beijing has tried in vain to recruit France, Germany, South Korea and other governments as allies against Trump, but they have echoed US complaints about Chinese industrial policy and market barriers. It gave no sign of progress in those areas. That reflects American frustration that the Chinese have failed to live up to past commitments. No timing was given and it wasn't immediately clear if the USA delegation would release a statement.


Negotiators from the USA and China had extended their trade talks to a third day, which investors took as a sign the trade discussions were productive even though the two sides didn't announce any breakthroughs.

The negotiations "enhanced mutual understanding and laid the foundation for resolving issues that each is concerned about", it said.

The New York Times noted that the United States intends to maintain its tariffs placed on Chinese goods previous year.

A day of back-and-forth trading Thursday ended with the fifth gain in a row for USA stocks. As producers say they won't let oil stockpiles exceed normal levels, fears of a slowdown in demand is abating as trade tensions ease between the world's top-two economies.

China will not make any "unreasonable concessions" and any agreement must involve compromise on both sides, the China Daily, a state newspaper, said on Wednesday. But as those talks ended, it's not clear what the next steps will be or when they will talk next.


White House press secretary Sarah Huckabee Sanders expressed optimism to Fox Business Network.

The Wall Street Journal reported Tuesday the two sides were narrowing their differences, with Chinese officials offering greater purchases of USA goods and services and Cabinet-level follow-up meetings expected later this month. Investors are more confident the Organization of Petroleum Exporting Countries and its allies will deliver on their pledge to cut 1.2 million barrels of output starting this month. "This is what China has wished for, but I think the US will wait and see", Chiu said. A jump in American petroleum inventories served as a reminder that booming US shale-oil production may still flood the global market with more petroleum than it needs. Forecasters expect American orders to slump this year. The "negotiations" consisted of United States officials insisting that Beijing meet a long list of demands, but offering nothing in return, other than not proceeding with the higher tariffs. There is no question that the Chinese want the deal, they need the deal.

Earlier this week, China approved five genetically modified (GM) crops for import, the first in about 18 months, which could boost its overseas grains purchases and ease US pressure to open its markets to more farm goods. "China's development has ample tenacity and huge potential", Lu said.

Liu led a previous round of talks in Washington a year ago that ended in failure, and he's expected to meet chief US negotiator Robert Lighthizer later this month.

People walk by bulls sculptures titled "Five Bulls Gathering Fortune" on display at the Wangfujing shopping district in Beijing, Thursday, Jan. 10, 2019.


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