On Wednesday Chinese and US officials extended trade war talks into a third day, with a member of the American delegation saying negotiations “went just fine”. The US officials have been in Beijing since Monday for the first sit-down talks since U.S. President Donald Trump and Chinese President Xi Jinping agreed on December 1 to a three-month truce on a tit-for-tat trade spat.
Asian markets rose on increasing optimism that the two sides would be able to hammer out a deal ahead of a March deadline and avert further import tariff hikes. A member of the US delegation, Under Secretary for Trade and Foreign Agricultural Affairs Ted McKinney, told reporters that the team would return to the United States later on Wednesday, and talks were “were wrapping up now”.
“I think they went just fine,” McKinney said as he left the hotel with his luggage, adding the trip “has been a good one for us”. Trump boasted on Twitter on Tuesday that discussions in China were “going very well!”
The US delegation, led by Deputy Trade Representative Jeffrey Gerrish, had been scheduled to end its visit on Tuesday.
Washington has been clamouring for an end to the alleged forced transfer — and even theft — of American technology, as well as steep government subsidies for Chinese companies.
The Trump administration also wants Beijing to buy more American goods to narrow a yawning trade gap and allow foreign players better access to the Chinese market. Neither Chinese nor US officials have given any details about the discussions.
US Commerce Secretary Wilbur Ross signalled in a CNBC interview on Monday that there was a “very good chance” of reaching an agreement. China’s economy was more vulnerable to the fallout from the trade war, he said, noting that Beijing exports more goods to the United States than the other way around.
“I think a deal is very possible and I’ve heard some very encouraging words,” Apple chief executive Tim Cook told CNBC. “I don’t speak for them obviously,” Cook said in reference to the Trump administration. “I do talk with them and I give them my ideas and thoughts.”
The US smartphone maker has felt the pinch of the bruising trade spat, and warned that 2018 revenues would miss its forecast — in large part due to a slump in iPhone sales in China. The temporary trade-war ceasefire came after the two sides imposed import duties on more than $300 billion of each other’s goods.
Without a resolution, punitive US duty rates on $200 billion in Chinese goods are due to rise to 25 percent from 10 percent on March 2. The current trade round coincided with an unannounced visit from North Korean leader Kim Jong Un, who arrived in Beijing on Tuesday for talks with Xi in Beijing ahead of a possible second meeting between Kim and Donald Trump.