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Trump to meet with China for talks aimed at ending trade war

Trump to meet with China for talks aimed at ending trade war

It remains to be seen what deals - or lack of them - might result, however for the moment it appears markets have settled on a cautious optimism.

White House officials soon responded to the report, however, dismissing any rumors that Liu had plans to leave Washington early and assuaging some of the fears.

On Wall Street, the Dow Jones index lifted by 151 points, or 0.6 per cent, to close at to 26,497 points.

While both the USA and China face the risk of slowing economic growth, the Trump administration appears to be sticking to its hard line.

While previous lower-level talks between USA and Chinese officials aimed to create a good atmosphere for the upcoming meeting, the U.S. blacklisting of 28 Chinese companies has generated a negative atmosphere instead, Chinese officials said.

In the past 15 months, steady escalations of the tit-for-tat tariffs on Chinese and U.S. goods, worth hundreds of billions of dollars, have rattled financial markets and stoked fears of a global recession. The focus point of the talks is expected to be whether Beijing will agree to expand imports of United States agricultural products to try and delay the tariffs. But warning signs for the global economy have blared ever louder in recent weeks, however, increasing the pressure on both sides to reach a deal.

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"I think both sides are needing to have a win".

With expectations of a breakthrough so low, markets would be satisfied with at least a "partial" deal to defuse the economically damaging trade war, or at least a commitment to not raise further tariffs.

A senior U.S. Chamber of Commerce official said U.S. and Chinese negotiators were working towards an "early harvest" of confidence-building agreements, including one to avoid currency manipulation.

He is as usual engulfed in turmoil, facing Democrats' intensifying impeachment probe and stinging criticism from Republicans for effectively allowing a Turkish assault on US-allied Kurds by pulling American forces away from the border in northeast Syria.

A so-called currency pact which Washington reportedly said had been agreed to earlier this year before the trade negotiations started will potentially be the first stage of an anticipated deal with Beijing.

Meanwhile, US central bankers and others believe the trade war is raising the chances the United States could slip into recession. Those include laws around intellectual property theft and the forced transfer of foreign technology.