China ministerial trade talks to start

Andrew Cummings
October 10, 2019

The offshore yuan was yanked lower before mainland markets opened after the South China Morning Post (SCMP) reported no progress at deputy-level trade talks and that the Chinese delegation planned to leave Washington a day early.

Some observers expect the USA and China will reach a partial agreement on some issues.

The partial agreement is also likely to include a delay in tariffs.

The first minister-level meetings between the two countries in more than two months is set to begin on Thursday.

On Wednesday, Bloomberg reported that China could up its buying of American agricultural goods, while sources close to China told the news organization that it would be open to forming a partial trade deal with the United States, if tariffs are suspended.

According to the Chinese-based media, one of the core issues is "forced technology transfers", a requirement to surrender technologies to Chinese firms imposed on foreign companies wishing to enter China's markets.

"We do not love tariffs, in fact, we would prefer not to use them, but after years of discussions and no action, tariffs are finally forcing China to pay attention to our concerns", Ross said in a speech while on an official visit to Australia.

Currently, the Trump administration is looking at introducing this previously agreed upon currency accord with China as part of the trade deal that could also see a tariff increase suspended next week, Bloomberg reported, citing sources familiar with the matter.

Without significant progress during the talks, US President Donald Trump is set to hike the tariff rate on US$250 billion worth of Chinese goods to 30 per cent from 25 per cent next Tuesday.

Other reports by iNewsToday