China-US Trade Deal Has 'Very Good Chance,' Ross Says

The talks were originally scheduled for two days.

Word of progress briefly drove U.S. stocks higher in early morning trading but major indices soon pared much of those gains. Australia's markets are now on their third day of growth.

US Dollar and China Yuan notes are seen in this picture illustration.

China and American officials began talks on Monday to potentially resolve a bruising trade war between the world's two biggest economies. "I do talk with them and I give them my ideas and thoughts".

ASIA'S DAY: Japan's Nikkei 225 index gained 1.1 percent to 20,427.06 and Hong Kong's Hang Seng jumped 2.3 percent to 26,462.32.

Chinese Foreign Ministry spokesperson Lu Kang confirmed during a press conference later that day that the US sent a vessel into the area "without permission from the Chinese side". Lu said he had no details and an official statement would be issued later. -China trade talks resumed. Asked about his presence on Tuesday, Lu from the foreign ministry said it wasn't surprising for Liu to be there. The two sides have provided scant information about the discussions, and neither has indicated its stance has changed since a December 1 agreement by Presidents Donald Trump and Xi Jinping to postpone further increases. "That's probably the easiest one to solve", he said.

Trump's "cheerleading tweet" feeds hopes for a settlement, Mizuho Bank's Vishnu Varathan said in a report. That might offer relief to rural areas that supported Trump in the 2016 election and were targeted by Chinese tariffs.

After the first day of talks wrapped up, Chinese importers made their third large purchase of USA soybeans in the past month, Chicago-based traders said.

Beijing's growing commercial and political ties with its neighbours will make it harder for Washington to find "Asian countries willing to stand at its side and help contain China", the newspaper said. American officials worry those might erode USA industrial leadership. There is no question that the Chinese want the deal, they need the deal.

Trump has imposed tariffs to pressure Beijing to change its practices on issues ranging from corporate espionage to market access and industrial subsidies. The 28-nation trade bloc filed its own challenge in the World Trade Organization in June against Chinese licensing rules it said hamper the ability of foreign companies to protect and profit from their technology. "It's probably going to take a little longer".

Chinese officials complain about controls on "dual use" technology with possible military applications. They say China's companies are treated unfairly in national security reviews of proposed corporate acquisitions, though nearly all deals are approved unchanged.

"I think they went just fine."

The meeting between the US delegation - led by Deputy US Trade Representative Jeffrey Gerrish and including officials from the Treasury, Commerce, Agriculture and Energy Departments - and the Chinese side ran late into Tuesday night.

Fears of a global slowdown and weaker corporate earnings - exacerbated by billions of dollars in tit-for-tat tariffs between the U.S. and China - have led to a sharp pullback on markets over the last few months. China responded by imposing penalties on $110 billion of American goods, slowing customs clearance for USA companies and suspending issuing licenses in finance and other businesses.

They are different to the Spratley Islands - a series of artificial islands constructed by the Chinese and which have been fitted with military bases and airfields. Forecasters expect American orders to slump this year.

Car sales in China fell 6 percent to 22.7 million units previous year, the first annual slump in at least two decades, the China Passenger Car Association said Wednesday.

Vanessa Coleman

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