Friday, 18 January, 2019

China says USA trade talks 'laid foundation' to resolve concerns

U.S. China leave next steps for trade talks unclear Latest US-China Trade Talks Focus on China’s Pledge to Buy More US Goods – USTR
Nellie Chapman | 10 January, 2019, 08:55

"These issues are much more hard to solve immediately but are, frankly, much more compelling to USA companies", said Jake Parker, vice president for China operations of the U.S.

The Dow Jones Industrial Average (.DJI) rose 91.67 points, or 0.39 percent, to close at 23,879.12, the S&P 500 (.SPX) gained 10.55 points, or 0.41 percent, to end at 2,584.96 and the Nasdaq Composite (.IXIC) added 60.08 points, or 0.87 percent, to finish at 6,957.08.

Chinese foreign ministry spokesman Lu Kang said Kim's visit and the trade talks were "two separate matters".

The temporary trade war ceasefire came after the two sides imposed import duties on more than $300 billion in two-way trade.

The meetings in Beijing were the first formal trade negotiations between the two sides since President Donald Trump and Chinese leader Xi Jinping agreed to a truce at the G20 summit in Argentina last month. United States president Donald Trump tweeted without elaborating, as talks wound down late on Tuesday evening in Beijing.

Oil also caught investors' attention after U.S. crude and Brent jumped overnight, helped by optimism over easing Sino-U.S. trade tensions, while OPEC-led crude output cuts also provided support.

"Talks with China are going very well!".

The US Trade Representative office said Wednesday that the talks focused on "ways to achieve fairness, reciprocity, and balance in trade relations", as well as the need for "ongoing verification and effective enforcement" of any agreement.

Oil prices rose by around one per cent on Wednesday, extending gains from the previous session on hopes that Washington and Beijing may soon resolve trade disputes that have cast a dark shadow over the global economy. Europe, Japan and other trading partners echo United States complaints those violate Beijing's market-opening obligations.

Also Tuesday, North Korean leader Kim Jong-un arrived in Beijing in a possible effort to co-ordinate with the North's only major ally ahead of a possible meeting with Trump.

There was no immediate US response to the Chinese complaint.

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

"That's not something that's going to be done by March", said Parker.

If US crude futures can break through the $55 level, "you're going to see real yields probably lower".

A combination of lower shipping costs and lower domestic demand will boost USA crude oil exports to Asia, Reuters reports, citing sources from the commodity trading and shipping industries.

Companies in both the United States and China are feeling the pain from the effects of the U.S. They complain China's companies are treated unfairly in national security reviews of proposed corporate acquisitions, though nearly all deals are approved unchanged.

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.

Auto and property sales have slumped as Chinese growth fell to a post-global crisis low of 6.5 percent in the quarter ending in September.

A range of Fed policymakers said last month they could be patient about future interest rate increases and a few did not support the central bank's rate increase that month, minutes from their December 18-19 policy meeting showed.