Published: Fri, January 11, 2019
Money | By Wilma Wheeler

China trade talks "set foundation" for resolution of concerns, says Beijing

China trade talks

Investors also weighed conflicting signals on retail sales and U.S. Chinese leaders see them as a path to prosperity and global influence and are reluctant to abandon them.

China will not make any "unreasonable concessions" and any agreement must involve compromise on both sides, the China Daily, a state newspaper, said on Wednesday.

Negotiators focused on China's pledge to buy a "substantial amount" of agricultural, energy, manufactured goods and other products and services, the U.S. Trade Representative said. If a "REAL" deal with China is possible, the USA will "get it done", Trump tweeted shortly after his dinner with Jinping last month. We are right now taking in $billions in Tariffs.

Liu, the chief economic adviser to Chinese President Xi Jinping, made brief remarks at the negotiations, a person familiar with the meeting said.

The last four-day winning streak for the S&P 500 ended in mid-September.

MSCI's all-country index .MIWD00000PUS climbed 1.03 percent for a fourth day of gains.

Helen of Troy stock fell almost 13 percent, the largest 1-day drop in more than 6 years. The Russell 2000 index of smaller-company stocks rose 3 points, or 0.2 percent, to 1,442.

China's Ministry of Commerce says talks with the United States aimed at ending a tariff war "laid the foundation" for resolving concerns on both sides.

Some 40 days into the 90-day truce, there were few concrete details on progress made so far. "The US is very clear about China's stance".

ANALYST'S TAKE: "While there was agreement on less thorny issues such as agriculture and energy, US demands for verification and enforceable targets on intellectual property rights, transfer of technologies and non-tariff barriers may not be that easily addressed", DBS Group Research strategists Eugene Leow and Neel Gopalakrishnan said in a commentary. Trump said late Tuesday on Twitter. US negotiators are also taking steps to ensure the Chinese government actually follows through on its promises.

The truce came after the two sides imposed import duties on more than $300 billion of each other's goods.

Brent and the world's other key contract, WTI, slumped late previous year, hitting 18-month low points at $49.93 and $42.36 per barrel respectively.

"Removal of these tariffs must be a priority, to address the damage that has been done to American companies that depend on trade with China, and to the USA economy as a whole", the group said.

As the trade talks wound down, China's top economic official, Premier Li Keqiang, met with CEO Elon Musk of electric vehicle brand Tesla Inc.

Members of the USA delegation told reporters the talks progressed well.

Earlier this week, China approved five genetically modified (GM) crops for import, the first in about 18 months in a move that could boost its overseas grains purchases and ease pressure from the United States to open its markets to more farm goods.

China is the largest electric vehicle market and is strongly encouraging its development. Unlike many other news organizations, we have not put up a paywall.

Three days of negotiations in Beijing between USA and Chinese officials wrapped up on Wednesday amid an air of optimism towards the prospect of striking a trade deal, the Financial Times reports. Those include subsidies and other favors for high-tech and state-owned industry, rules on technology licensing and preferential treatment of domestic suppliers in government procurement.

Heightened risk appetite boosted U.S. Treasury yields to the highest this year, while the U.S. dollar extended losses after minutes from a December 18-19 Federal Reserve policy meeting showed many Fed policymakers said the central bank could be patient on future rate hikes.

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