Markets

United States warship sails in South China Sea amid trade talks with Beijing

United States warship sails in South China Sea amid trade talks with Beijing

The Wall Street Journal reported the two sides were narrowing their differences, with Chinese officials offering greater purchases of U.S. goods and services and Cabinet-level follow-up meetings expected later this month.

A person familiar with the matter tells CNN that negotiators between the world's two largest economies needed more time to discuss issues that were part of the agenda.

The Wall Street Journal reported Tuesday the two sides were narrowing their differences, with Chinese officials offering greater purchases of United States goods and services and Cabinet-level follow-up meetings expected later this month. The U.S. delegation were seen carrying their luggage with them as they left their hotel for the negotiations on Wednesday morning.

China's Foreign Ministry said Beijing had the "good faith" to work with the United States to resolve trade frictions as Chinese officials met their U.S. counterparts in Beijing for the first face-to-face talks since U.S. President Donald Trump and Chinese President Xi Jinping agreed in December to a 90-day truce in a trade war that has roiled global markets.

China and US officials started negotiations Monday in the first face-to-face meetings since Presidents Donald Trump and Xi Jinping agreed in early December on a 90-day truce.

Lu Kang, spokesman for China's foreign ministry, said on Monday that Chinese military aircraft and naval vessels were dispatched to identify the USA vessel and warn it to leave the area near the disputed Paracel Islands in the South China Sea, claimed by China. China has retaliated with tariffs of its own. That meeting would likely include a senior Chinese government official along with trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin.




The operation was not about any one country or to make a political statement, McMarr said in a statement to the Reuters news agency.

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.

Trump imposed import tariffs on hundreds of billions of dollars of Chinese goods previous year and has threatened more to pressure Beijing to change its practices on issues ranging from industrial subsidies to intellectual property to hacking. They have tried to defuse pressure for more sweeping change by offering trade concessions including purchasing more American soybeans, natural gas and other exports. "But for China, its very serious", she said.

The editor-in-chief of China's state-run Global Times tabloid, Hu Xijin, said on Twitter earlier that the extension of the talks, originally scheduled for two days, "sends a signal".

The talks are occurring as Chinese growth - 6.5 percent in the July-to-September period - fell to its lowest point in a decade. The threat of USA tariff hikes was the "dominating factor" for almost half, while others moved because of higher costs or tighter environmental regulation.

Ross said immediate trade issues would be the easiest to tackle, while enforcement issues and structural reforms, such as intellectual property rights and market access, would be more challenging. They complain China's companies are treated unfairly in national security reviews of proposed corporate acquisitions, though nearly all deals are approved unchanged.