China lowers expectations for USA trade talks

Andrew Cummings
October 10, 2019

This is the 13th round of talks between the two sides and the world's two biggest economies are deadlocked over USA allegations that China steals technology and pressures foreign companies to hand over trade secrets as part of a sharp-elbowed drive to become a world leader in advanced industries such as robotics and self-driving cars.

But experts also agree that tensions are just too high right now for bigger issues to be addressed, including Trump's concerns that China steals USA technology. "They want to make a deal, but do I?'" Trump tweeted.

"Next year will not get prettier for China in a presidential election year", he said. In the meantime, President Donald Trump faces a gathering political storm, amid the efforts by Democrats in Congress to impeach him and criticism from his own camp after pulling USA forces from northern Syria and exposing allied Kurdish forces to a Turkish assault.

US stocks were up 0.7 per cent at 10 NY, the Bloomberg Dollar Spot Index was down 0.2 per cent and the yield on 10-year Treasuries rose for a second day.

Donald Trump will meet China's negotiating team at the White House on Friday for the latest round of talks aimed at ending a 15-month trade battle that is weighing on the global economy. Chinese officials said the action interfered with China's sovereignty.

Talks between world's two largest economies may end in deadlock.

Mr Liu is still scheduled to leave on Friday evening, CNBC reported, citing an official.

Trump announced in a Thursday morning tweet that he will meet with Liu He, China's vice premier and chief trade negotiator, at the White House.

Markets saw series of ups and downs on Thursday morning as investors awaited developments in the talks to resolve an ongoing trade war between Washington and Beijing, which are now in their third day. Data show with increasing clarity that the trade war is harming both economies, adding to pressure on the sides to strike a bargain.

Earlier in the week, Washington fired a policy salvo at Beijing, slapping visa restrictions on senior officials and blacklisting dozens of companies accused of persecuting ethnic Muslims in the Xinjiang region. At the same time, a fight over free speech between China and the National Basketball Association, triggered by a tweet backing Hong Kong's protesters, has underscored the heated tensions.

The Trump administration is set to raise punitive duties on $250 billion in Chinese goods to 30% from 25% on October 15, further escalating the trade war.

Showing progress with a currency pact and other matters could serve as a reason to delay next week's tariff hike. "Some may be short-term, some may be long-term", Kudlow told reporters outside the White House on Monday. We've come this far.

"The (US) President should be keen to achieve that, in particular during the election campaign.I think the optimism has risen repeatedly over the past few days", Ulrich Leuchtmann, an FX strategist at Commerzbank, said in a daily note. The question is do I want to make a deal.

"Both sides have been losing, and so has the global economy", said Myron Brilliant, head of worldwide affairs at the US Chamber of Commerce.

Pillsbury and the White House press office did not offer comment on the matter Thursday.

No details were made public about the U.S. Broader trade negotiations between the two countries broke down in May after the USA accused China of backtracking on its commitments. Then, in August, the Trump administration formally declared China a currency manipulator.

According to people familiar with the currency language, the pact largely resembles what the USA agreed to in a new trade agreement with Mexico and Canada and also incorporates transparency commitments included in Group of 20 statements.

Other reports by iNewsToday