China to send delegation for United States talks to avert trade war

Andrew Cummings
August 16, 2018

News of the meeting gave a lift to the yuan and helped cap losses in China's stock markets.

After negotiations in Washington in May, Beijing believed it had assurances from the USA that tariffs were off the table, with Mnuchin saying the trade war and tariffs were "on hold".

China said on Thursday a delegation would attend the next round of trade talks with United States counterparts in Washington later this month, in the latest bid to diffuse a conflict that has set world markets on edge.

While Liu and Ross had also been involved in the four previous rounds, US Treasury Secretary Steven Mnuchin absence from the coming round rendered it a lower-level meeting.

China announced Thursday that it will send a delegation to the US later this month for trade negotiations, after the two countries started imposing tit-for-tat tariffs on goods from each other and Washington tightened controls on investment.

Cinna's Commerce Ministry says visiting at the invitation of the US.

Traders are also saying that short sellers are paring positions in response to the news that Beijing will be sending a delegation to Washington in late August to try to resolve the trade dispute between the world's two largest economies.

A Chinese delegation led by Vice Commerce Minister Wang Shouwen will meet with an American group led by David Malpass later this month.

"The main goal is to see whether both sides are really interested in having further dialogue".

"This will be 'talks about trade talks, '" said Gai Xinzhe, an analyst at the Bank of China's Institute of International Finance in Beijing.

Washington is due to activate additional tariffs on $16 billion of Chinese goods on August 23, and Beijing has said it will respond in kind.

Providing Brent crude some support were looming US sanctions against Iran's oil exports, set to start from November, with Asian buyers including India, South Korea and Japan already scaling back orders.

"It is possible that China may stress to the United States that China will continue reform", he said.

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