US, Chinese officials try to head off trade war

China vows to defend its own interests in US trade talks

While the Trump administration has made slashing the USA trade deficit with China a priority, the US business community is also hoping for developments in more longstanding issues. Navarro, who is the voice of protectionist trade policies inside the Trump administration, grew frustrated with the direction Mnuchin was taking at the talks and was upset that other officials were getting shut out of meetings with the Chinese in favor of Mnuchin engaging in one-on-one talks with China's Vice Premier Liu He, the sources said.

"Nothing has happened with ZTE except as it pertains to the larger trade deal", Trump said on Twitter.

In Beijing, the commerce ministry said China hoped the two sides could resolve the trade frictions during the talks.

Members of the trade- and tax-focused U.S. House of Representatives' Ways and Means Committee said they told Liu that he needed to address U.S. concerns about intellectual property theft, forced technology transfers, and barriers to investment in China and U.S. agricultural exports.

The company faced collapse as a result and Trump said Sunday he and Chinese President Xi Jinping were exploring ways to get the company "back into business fast", as he ordered the commerce department to take action. Florida Republican Senator Marco Rubio said the move was a sign that the USA was about to "get out-negotiated by China again". The U.S. has very little to give, because it has given so much over the years.

As for Brandstad's comment that the US wanted to see China further open its markets for autos and food exports, Wei acknowledged that China's large middle class meant that there was growing demand for high quality agricultural products but cautioned that tariffs were not a wise move.

The fight erupted when senior White House adviser Peter Navarro complained to Treasury Secretary Steven Mnuchin about being excluded from key meetings with Chinese leaders, the three people said. "America's national security must not be used as a bargaining chip in trade negotiations".

The talks will start as USTR finishes up public hearings on the first batch of USA tariffs on US$50 billion worth of Chinese goods proposed as punishment for alleged violations of U.S. intellectual rights.

Commerce Secretary Wilbur Ross imposed the ban last month because ZTE violated the terms of a $1.19 billion penalty agreement that was announced past year.

One area where progress could be made in the bilateral talks was direction from the US regarding the types of goods it could sell to China, Wei said.

A second round of U.S.

The US delegation, among others, comprises Commerce Secretary Wilbur Ross and United States Trade Representative Robert Lighthizer.

Ahead of the meetings at Treasury, the Chinese delegation has been meeting with lawmakers on Capitol Hill.

Liu told the group of House representatives on Wednesday that he wanted to address trade imbalances by increasing Chinese demand for American products, Brady said.

"From the two documents that were exchanged a couple of weeks ago, they seem pretty far apart, and we don't know what revised offers have been made at this point or if they've narrowed or changed the list". Asked if the Trump administration will move forward with proposed levies on Chinese goods, Hatch said "I think they will go into effect".

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