China lowers expectations for United States trade talks


The Chinese delegation, headed by Vice Premier Liu He, is planning to leave Washington on Thursday after just one day of minister-level meetings, the report said.

Notably, greenback strength, assessed through the U.S. dollar index which is measured against six major currencies, were seen little changed despite the abovementioned development.

Beijing had lowered its expectations for significant progress during this week's trade talks, Chinese government officials told Reuters News Agency, after the USA blacklisted more than two dozen Chinese entities on Monday.

A mere hours after the pessimistic piece in the SCMP, the New York Times ran a story singing an entirely different tune, reporting plans in Washington to loosen restrictions on Chinese telecom giant Huawei - which was placed on a USA trade "blacklist" in May - allowing some business in "nonsensitive goods".

US President Donald Trump said he will meet Chinese Vice-Premier Liu He on Friday (Oct 11) as the two nations negotiate a possible trade agreement in Washington.

"I will say I think it's going really well", Trump told reporters, offering no details.

Ahead of the meeting a Chinese official told Bloomberg that China was open to a "partial trade deal" but talks have been further complicated by the USA decision to blacklist 28 Chinese tech firms over Beijing's treatment of Uighur Muslims and other predominantly Muslim ethnic minorities.

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While both the USA and China face the risk of slowing economic growth, the Trump administration appears to be sticking to its hard line.

Washington accuses China of attempting to dominate global industry through massive state intervention in markets, theft of intellectual property, hacking and subsidies, accusations shared by Europe and Japan.

"Big day of negotiations with China. They want to make a deal, but do I?"

Meanwhile, US central bankers and others believe the trade war is raising the chances the United States could slip into recession.

China this year balked at Trump's demands for a profound transformation to the way it manages its economy and analysts say Beijing is unlikely to adopt economic reforms that could undermine the Communist Party's political power.

Both sides should not escalate disputes or they will drift apart, said a second Beijing-based Chinese official briefed on the talks this week.