Clock ticks on tariff truce as US and China hold second day of trade talks

China and the United States are into a second day of trade talks but there is no word from either side on progress to meet a March 1 deadline for a deal.

The discussions are meant to pave the way for top-level talks on Thursday and Friday involving US Trade Representative Robert Lighthizer, US Treasury Secretary Steven Mnuchin and Chinese Vice-Premier Liu He.

“We’re looking forward to several important days of talks,” Mnuchin told reporters after arriving at a Beijing hotel.

Lighthizer, who arrived at the hotel earlier in the day, did not answer reporters’ questions, according to a report by Reuters.

The two countries have until March 1 to reach a deal, or the US will raise tariffs on US$200 billion of Chinese goods from 10 per cent to 25 per cent.

Analysts have said it would be difficult for the world’s two largest economies to resolve their trade disputes by the designated date, given the challenge of US demands for structural reform in China to address issues of intellectual property protection, forced technology transfers and state subsidies favouring domestic companies.