Economy

US govt official says trade talks with China continuing Wednesday

US govt official says trade talks with China continuing Wednesday

The first round of comprehensive trade talks between the U.S. and China since the countries declared a tentative ceasefire late a year ago is set to continue for a third day, both sides confirmed on Tuesday.

After the first day of talks wrapped up, Chinese importers made their third large purchase of USA soybeans in the past month, Chicago-based traders said.

Three days of US-Chinese talks aimed at ending a costly tariff battle wrapped up Wednesday in an optimistic atmosphere after President Donald Trump said they were "going very well!".

Many economists would not worry about this risk of reliance on foreign imports, though Trump views the imbalance as payments made to Chinese manufacturers without adequate reciprocation, and has pledged to reduce the trade deficit.

Additionally, the US and China will meet for a third day on Wednesday.

Chinese foreign ministry spokesman Lu Kang said a one-day extension in talks showed both sides are serious about the talks.

"The U.S. feels uncomfortable with China's rapid development, and can't adapt to its own declining influence", wrote Chen Yonglong in the state-run China Daily". "China has the good faith, on the basis of mutual respect and equality, to resolve the bilateral trade frictions". No timing was given and it wasn't immediately clear if the USA delegation would release a statement.

"As for whether the Chinese economy is good or not, I have already explained this".

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".

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"Even if a deal is cobbled together, the more strident trade hawks in the White House and Trump may not sign off", said Mizuho Bank's Vishnu Varathan in a report.

Washington complains China uses "unfair" trading practices, including the theft of USA firms' intellectual property.

The talks are taking longer than expected as the Chinese commerce ministry had said last week that the meetings would take place on Monday and Tuesday.

"It certainly has hurt the Chinese economy", Ross told CNBC, noting that China exports many more goods to the United States than the other way around.

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

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 US charges related to possible violations of trade sanctions against Iran.

-China trade talks and yet China sent in its top economics adviser Chinese Vice Premier Liu He.

China heralded an agreement in the last week of December between China and the U.S.to hold another round of in-person meetings in January, the meetings that are now occurring this week. The Trump administration wants China to agree to stop the alleged theft and forced transfer of USA technology. There are concerns that USA growth, 3.4 percent in the third quarter, is also slowing even as the country's unemployment rate remains almost at a five-decade low.