Dim prospects for deal as China and US resume trade war talks
- Negotiators might find agreement on currency pact but bigger differences remain, observers say
- New strains over Xinjiang and Hong Kong mean ‘tiny’ possibility of breakthrough is ‘even smaller’
Top Chinese and US negotiators launched a new round of high-stakes trade talks in Washington on Thursday, looking for ways to build momentum as tensions dog bilateral ties.
Despite the strains, both sides are aiming to launch a previously agreed currency pact and purchases of agricultural products by China as part of an early harvest deal that could mean a suspension of tariff increases planned for next week.
The two sides held deputy-level talks on Wednesday, in preparation for the formal meeting on Thursday between Chinese Vice-Premier Liu He and US Trade Representative Robert Lighthizer and US Treasury Secretary Steven Mnuchin.
Sources told the South China Morning Post that there was little progress on Wednesday, with the US yet to agree to postpone the tariff increases and China reluctant to discuss forced technology transfer.
The White House is keen to implement a currency pact the two nations agreed to in February to create more scope to resolve sticky issues and help delay tariff rises due on October 15, according to Bloomberg.
Xinhua, China’s official news agency, quoted Liu as saying that China was committed to reaching a deal with the United States.