Published: Fri, July 12, 2019
Markets | By Otis Pena

US, China negotiators resume trade war talks

US, China negotiators resume trade war talks

China has once again failed to meet its end of the bargain, stymieing the ongoing trade talks with the United States.

If Friday's trade data are in line with the downbeat forecasts or worse, it could spark concerns about a sharper-than-expected slowdown in China and the risk of a global recession.

US President Donald Trump and Chinese leader Xi Jinping agreed to revive negotiations when they met on the sidelines of the G20 summit in Osaka on June 29.

China has started preparing to buy farm products, including gauging the prices of USA soybeans, but will not purchase large amounts until it sees concrete progress in the negotiations, a person familiar with the matter said Friday.

The truce suspended USA plans to impose tariffs on an additional $300 billion in Chinese goods - action that would have extended the taxes to everything China ships to America.

The two countries are fighting over US allegations that China deploys predatory tactics - including stealing trade secrets and forcing foreign firms to hand over technology - in a headlong drive to challenge American technological dominance.

June marked the first full month of higher USA tariffs on $200 billion of Chinese goods, which Washington announced weeks earlier after trade talks between the world's largest economies broke down.

The Commerce ministry's Gao declined to provide more information on the details of the call and plans for more talks in the next stage.

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The U.S. has imposed tariffs on $250 billion in Chinese imports, drawing retaliatory sanctions from Beijing on $110 billion in U.S. products.

Trade weakness has added to pressure on Xi's government to shore up economic growth and avoid politically risky job losses.

Mr Trump also claimed that China, in exchange, has agreed to buy a "tremendous amount" of American food and agricultural products.

President Donald Trump on Thursday accused China of "letting us down" by not promptly buying more USA farm products. "Hopefully they will start soon!"

The Trump-Xi truce calmed jittery financial markets.

Mr Hu Xijin, editor-in-chief of the state-owned Global Times newspaper tweeted late Thursday that the "achievement of Osaka summit is a China-US consensus, not a unilateral commitment China made to the US".

Trump's statement "highlighted how more speed bumps may remain in the road ahead", said Craig Orlam of OANDA in a report.

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