Economy

US official says China trade talks 'went just fine'

US official says China trade talks 'went just fine'

U.S. president Donald Trump tweeted without elaborating, as talks wound down late on Tuesday evening in Beijing. Bloomberg reported that Trump is eager to strike a deal to boost markets, citing people familiar with White House deliberations.

In the first official statement to issue from either side, the USTR said the meetings, which began on Monday, were part of a push to achieve "needed structural changes in China with respect to forced technology transfer, intellectual property protection, non-tariff barriers, cyber intrusions and cyber theft of trade secrets for commercial purposes, services, and agriculture". China responded by imposing penalties on $110 billion of American goods, slowing customs clearance for US companies and suspending issuing licenses in finance and other businesses. Washington, Europe, Japan and other trading partners say those violate Beijing's market-opening obligations. American leaders also worry they might erode USA industrial leadership.

United States companies also want action on Chinese policies they complain improperly favor local companies.

The Wall Street Journal reported Tuesday the two sides were narrowing their differences, with Chinese officials offering greater purchases of U.S. goods and services and Cabinet-level follow-up meetings expected later this month.

Companies that have been disappointed by Beijing's failure or delays in carrying out commitments want an enforcement mechanism with "some kind of penalty for not doing what they promised", said Parker.

Since the end of October past year, chartering a Very large Crude Carrier from the Louisiana Offshore Oil Port has fallen by some 40 percent to US$5 million, Reuters Eikon data suggests. The U.S. will decide on the next steps after officials report back to Washington.

"Listen, I think in the end markets are not really going to care very much about the details of any deal that's struck as long as a deal is struck and directionally looks like we are going toward deescalation rather than escalation", said Jimmy Pethokoukis, fellow at the American Enterprise Institute.

Donald Trump warns California he'll cut FEMA funding for wildfire recovery
The tweet comes a day after Governor Gavin Newsom held a press conference with fire officials regarding fire prevention. However, a spokeswoman said the agency would be issuing a statement on the matter, though she did not give a timeline.

Such a move would likely prompt further retaliation by China, which has already levied tariffs on U.S. goods, further rattling investors who are nervous about a significant slowdown in China's economy.

With cooling economic growth raising the urgency for a settlement, this week's talks went ahead despite tension over the arrest of a Chinese tech executive in Canada on USA charges related to possible violations of trade sanctions against Iran.

The US delegation, led by Deputy Trade Representative Jeffrey Gerrish, had been scheduled to end its visit on Tuesday. China responded by imposing penalties on $110 billion of American goods, slowing customs clearance for United States companies and suspending issuing licenses in finance and other businesses.

Chinese exports to the United States held up despite the tariff hikes, but that was due partly to exporters rushing to fill orders before any more increases hit. Forecasters expect American orders to slump this year.

Still, cooling economic growth in both countries is increasing pressure to reach a settlement.

Chinese growth fell to a post-global crisis low of 6.5 per cent in the quarter ending in September. "There is the potential for Q2 USA crude exports to Asia to be higher year-on-year if the WTI/Brent spread remains in the range it has in recent months and with the lower freight rates", Reuters quoted a Genscape oil analyst, David Arno, as saying.