China lowers expectations for U.S. trade talks

Negotiators heading to Washington for talks aren't optimistic about securing a broad agreement that would end the trade war between the two nations for good said an unnamed official

Negotiators heading to Washington for talks aren't optimistic about securing a broad agreement that would end the trade war between the two nations for good said an unnamed official

Livelihoods around the world are at stake as economies get squeezed by slowing global trade volumes, supply chain disruptions and mounting uncertainty among businesses as to how to best position themselves for a breakthrough - or no breakthrough - in the US-China trade war.

Markets over the prior 24 hours had pinned their hopes on media reports that Beijing will propose a partial trade deal to prevent further escalation.

Liu said the Chinese delegation "came to the negotiations with utmost sincerity" and "is willing to carry out serious dialogue with the USA side on issues of mutual concern, including trade balance, market access and investor protection", the official Xinhua News Agency reported.

In a tweet, Trump said he would meet the following day with Vice Premier Liu He, who returned to the negotiating table on Thursday amid a blitz of aggressive United States maneuvers, with hopes for a grand bargain between the economic powers this week near zero. "They want to make a deal but do I?" he said on Twitter.

The report added that higher-level talks with China's Vice Premier Liu He would now be only one day, with the China delegation planning to leave Washington on Thursday instead of Friday as scheduled.

"The Chinese side came with great sincerity, willing to cooperate with the US on the trade balance, market access and investor protection", Xinhua quoted Liu as saying on Thursday. China has hit back by targeting about $120 billion in USA goods, focusing on farm products. The focus point of the talks is expected to be whether Beijing will agree to expand imports of U.S. agricultural products to try and delay the tariffs. "I meet with Vice Premier tomorrow at The White House".

"Big institutions use this contract primarily for hedging and they're very hedged, heavily hedged", said Randy Frederick, vice president of trading and derivatives for Charles Schwab in Austin.

For more than a year, the United States and China have been locked in a trade war on issues such as cybersecurity, regulations, intellectual property, subsidies and tariffs.

The Trump administration is set to raise punitive duties on $250 billion in Chinese goods to 30% from 25% on October 15, further escalating the trade war.

Trump announced that he would also meet with Liu on Friday, lifting optimism toward the discussions after a disputed report that China could leave earlier than planned.

China's purchases of USA soybeans jumped in September after stagnating during the summer.

Texas Rep. Kevin Brady on Wednesday told FOX Business' Stuart Varney that he thinks the "sweet spot" for China to reach a deal is between now and the end of the year.

U.S. central bankers believe the trade war is raising the chances the United States could slip into recession. "It requires a lot of preparation work and consensus on both sides".

The benchmark stock index, however, reclaimed most of the lost ground over Wednesday and Thursday as Beijing and Washington's continued willingness to talk supported hopes that the latest talks would yield at least a partial deal.

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