The US and China have been locked in an escalating trade spat since early 2018, raising import tariffs on each other's goods. The negotiations are expected to lay the ground-work for top-level negotiations between U.S. Trade Representative Robert Lighthizer, Treasury Secretary Steven Mnuchin and Vice Premier Liu He in October in Washington.
A trade adviser to Donald Trump has said the us president is ready to escalate the ongoing trade war with China if a trade deal is not agreed soon, the South China Morning Post reported on Thursday. China said it's fully prepared to respond and is suspending purchases of US agricultural products.
Mnuchin formally declared China a currency manipulator last month after the yuan slipped below 7 to the dollar, accusing Beijing of pushing its currency lower to gain a trade advantage. Getting a trade deal done would likely be a big boost for Trump's 2020 election chances and he said Tuesday he thinks "there will be a deal soon, maybe before the election or one day after the election".
When such purchases failed to materialize during U.S. In fact, it would be a big risk for the United States president with the only benefit of being able to sell a few soybeans and pork to China!
The trade spat between the top two economies of the world began with Trump imposing tariffs on steel and aluminum imports into US. Beijing also exempted US soybeans and pork from a scheduled tariff hike, after which Trump announced a delay on tariff hikes for a list of Chinese goods.
"There's a little softening in the air", White House adviser Larry Kudlow said in a separate interview on the television network Thursday morning.
Despite the cautious moves by both sides towards an agreement on the trade front, the U.S. has further tightened the rules governing entry of foreign investors into American businesses through takeovers and equity participation in sensitive technology and high-tech areas on national security considerations.
To keep markets steady, the two sides could well "string along the talks for a longer period of time", he added.