Donald Trump sees opportunity for trade deal with China

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USA and Chinese negotiators on Monday held their first face-to-face talks since the world's two largest economies agreed to a truce aimed at resolving their trade dispute.

USA and Chinese officials have begun talks aimed at ending the trade war that has imposed hundreds of billions of dollars in tariffs over the past year.

No agreement was expected, but any progress on ending a dispute that has resulted in both sides imposing tariffs on billions of dollars' of each other's exports would be welcomed.

China's economy has slowed, and some US economic sectors are hurting from the tariffs.

Asked about the timing of the operation during trade talks, Lu said resolving issues would help both countries and the world.

"I think that gives them a great incentive to negotiate".

On Friday, Beijing cut bank reserve requirements amid slowing growth at home and pressure from the USA tariffs.

The two sides agreed to hold "positive and constructive" talks and dialogue to resolve economic and trade disputes in accordance with the consensus reached by the countries' leaders, Lu Kang, spokesman at the foreign ministry, told reporters.

China has lodged solemn representation to the USA side in this regard, Lu said, noting that the action has violated Chinese and relevant worldwide laws, infringing on China's sovereignty and damaging peace, security and order of the area. They complain China's companies are treated unfairly in national security reviews of proposed corporate acquisitions, though nearly all deals are approved unchanged. US stocks were poised to open steady following Friday's bumper gains, with Dow futures up 0.1 percent and the broader S&P 500 futures pointing to a 0.1 percent fall.

Beijing has tried in vain to recruit France, Germany, South Korea and other governments as allies against Trump, but they have echoed USA complaints about Chinese industrial policy and market barriers.

Trump and Xi agreed to a 90-day postponement of additional tariff increases to take effect January 1.

US and Chinese officials expressed optimism before the two day talks, but Beijing at the same time complained about the sighting of the U.S.S. McCampbell destroyer in what it said were Chinese waters near disputed islands in the South China Sea.

Adding to the worries, China's stock market became the world's worst performer past year, ending with a loss of 28 percent.

In March, when the tariff tit-for-tat was in its infancy, President Trump suggested the US might impose up to $60 billion worth of tariffs on Chinese goods.

Trump on Sunday headed to the United States presidential retreat at Camp David, where he said he would discuss a trade deal with China with senior aides, among other issues.

Chinese officials are unhappy with US curbs on exports of "dual use" technology with possible military applications. "China has proven it can build infrastructure very quickly and there are merits to this model", he said.

"We have made stern complaints with the U.S.", Lu said.

It's possible that if Trump, who's making his second trip to Davos as president, doesn't meet with Wang, one or more of his top trade lieutenants will instead. Chinese data last week showed its manufacturing activity contracted for the first time in more than two years.

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