China-US Trade Deal Has 'Very Good Chance,' Ross Says

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The two countries have until March 1 before USA tariffs on some US$200 billion in Chinese goods are set to rise to 25 per cent from 10 per cent.

US negotiators are headed into talks with Chinese counterparts as the two countries seek a deal to end a trade war that has raised fears of global economic turmoil. President Donald Trump has accused China of pursuing dishonest economic practices, including currency manipulation and the forced sharing of intellectual property, among other accusations that the White House has labeled a threat to job security at home.

USA officials worry that China's rise as a potential competitor in telecoms, solar power, electric cars and other fields might erode American industrial leadership.

Trade talks in Beijing between the United States and China will continue for a third day, the office of the US Trade Representative (USTR) confirmed on Tuesday.

The discussions are the first face-to-face interactions between the USA and China since both presidents met in Argentina and agreed to a temporary truce in their tit-for-tat tariff war.

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Chinese Foreign Ministry spokesman Lu Kang said that the conduct of the USA ship had violated China's and worldwide law, and that China had sent military ships and aircraft to identify and warn off the ship.

Six months after Trump first slapped tariffs on Chinese goods, signs are growing that the trade war is exacting an economic and financial cost, increasing the incentive for both sides to end the conflict. Trump has given U.S. Trade Representative Lighthizer until March 1 to negotiate an accord with the Chinese on "structural changes" to Beijing's state-driven economic model.

As the talks began Monday at the Chinese Commerce Ministry, Beijing complained about a US warship in what it said were Chinese waters, but it was unclear whether that would disrupt the proceedings.

Trump imposed import tariffs on hundreds of billions of dollars of Chinese goods previous year and threatened more to pressure Beijing to change its practices on issues ranging from industrial subsidies to intellectual property and hacking.

For their part, Chinese officials are unhappy with US curbs on exports of "dual use" technology with possible military applications. Economists expect American orders from China to slump this year, at a time when global consumer demand is weakening. "That's probably the easiest one to solve", Ross said.

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He and Chinese President Xi Jinping agreed December 1 to postpone more tariff hikes on each other's goods for 90 days while they negotiate.

A private-sector source familiar with the talks said this could indicate that more detailed discussions were likely taking place.

The editor-in-chief of China's state-run Global Times tabloid, Hu Xijin, said on Twitter earlier that the extension of the talks, originally scheduled for two days, "sends a signal".

"Talks with China are going very well!" There are concerns that US growth, 3.4 percent in the third quarter, is also slowing even as the country's unemployment rate remains almost at a five-decade low.

These include more Chinese purchases of USA goods and services to reduce a yawning trade gap, increased access to China's markets, stronger protection of intellectual property and a reduction in Beijing's subsidies to Chinese companies. There is no question that the Chinese want the deal, they need the deal.

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