Markets

What hope for markets in the US-China trade talks?

What hope for markets in the US-China trade talks?

US stocks opened higher on hopes of progress toward a deal to avert an all-out trade war between the world's two largest economies, but pared gains slightly after the USTR statement was released.

The two sides agreed to keep close contact, according to the statement.

China's Ministry of Commerce on Thursday said the two sides "implemented the consensus" reached by the two presidents in earlier talks, and discussed both trade and structural issues in the meetings.

No schedule for further face-to-face negotiations was released after the talks, and USTR said the American delegation was returning to Washington to report on the meetings and "to receive guidance on the next steps". In a Tweet Tuesday morning, President Donald Trump said the talks were "going very well!".

"The officials also discussed the need for any agreement to provide for complete implementation subject to ongoing verification and effective enforcement", said the U.S. statement, adding that U.S. officials, who left Beijing on Wednesday, will now report back for further guidance. Asian stock markets responded well to the news that the two-day meetings would extend to three days.

People familiar with the U.S.

Prior to the meeting, China made a number of concessions to USA demands including temporarily cutting punitive tariffs on US -made cars, resuming soybean purchases, promising to open up its markets for more foreign investment, and drafting a law to prevent forced technology transfers.

"The earlier escalation of the trade conflict between the US and China and souring bilateral relations appear to have given way to a more conciliatory approach since early December", he wrote in a note Thursday. Liu made a brief appearance at the talks in Beijing on Monday, boosting optimism that China was serious about making progress.




According to China's Foreign Ministry, the talks extended into an unscheduled third day.

"I don't know the timing and exactly what that will look like, but what I can be sure of is that we are moving towards a more balanced and reciprocal trade agreement with China".

Companies in both the United States and China are feeling the pain from the effects of the U.S. US officials appear to want to maintain the pressure of tariffs, the official said.

The editor-in-chief of the Global Times, a state-run Chinese newspaper known for its nationalist leanings, said on Twitter around 4 pm in Beijing that he'd heard the two sides were still consulting on the wording of coordinated statements. Lu said he had no details and an official statement would be issued later.

If talks continue to go well, a cabinet-level meeting is likely to happen before the end of the month.

Tesla broke ground this week in Shanghai on its first factory outside the U.S. Musk said production of its Model 3 would start late this year.

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 US imposed tariffs on more than $250bn (£195.6bn) worth of Chinese goods, with the threat of more to come.