China's exports fall ahead of crucial trade talks

China's exports fall ahead of crucial trade talks

China's exports fall ahead of crucial trade talks

US shares declined again on Wednesday on the eve of talks between representatives from the USA and China, who are prepared to resume trade negotiations in a last chance to stave off more tariff increases. The president also said he was considering a further 25 percent tariff on $325 billion of other Chinese goods - essentially targeting all products imported to the United States from China. China has just informed us that they (Vice-Premier) are now coming the the make a deal.

The United States is demanding Beijing make sweeping changes to its trade and regulatory practices, including protecting USA intellectual property from theft and forced transfers to Chinese firms, curbs on Chinese government subsidies and increased American access to China's markets.

The world's top two economies have exchanged tariffs on more than $360 billion in two-way trade, gutting USA soy bean exports to China and weighing on the manufacturing sectors in both countries.

Disagreements between U.S. and Chinese officials have deepened over the past week over accusations that Beijing would renege on commitments made earlier in negotiations that aimed to end the two countries' trade war.

Trump's raging tweet announcing the tariffs on Sunday caught some American observers by surprise, seeing as the United States and China had both recently expressed optimism about reaching an agreement soon.

But the USA found that in each of the seven chapters of the draft trade deal, China had deleted commitments, raising doubts in Washington about whether Beijing would comply.

Global markets tumbled mightily following Trump's weekend threat, as well as concerns it could lead China to call off negotiations. The S&P 500 has fallen more than 2 percent so far this week.

Vice-Premier Liu He will go to Washington this week in a bid to salvage trade talks and stop a new economic Cold War from breaking out between China and the United States.

U.S. stock futures briefly pared losses after Trump's tweets, though investors remained on edge after a two-day trade-fomented rout wiped out more than US$500 billion from the value of American equities.

Reuters reported Wednesday that over the previous weekend, Chinese officials tried to reverse nearly every aspect of a long-negotiated draft trade deal between the two countries. Trump tweeted on Wednesday.

Chinese negotiators said they couldn't touch the laws, said one of the government sources, calling the changes "major".

The U.S. government has filed plans to raise tariffs on $200 billion worth of Chinese imports from 10% to 25% Friday.

US President Donald Trump said in a tweet that he would be "very happy with over $100 Billion a year in Tariffs filling US coffers". "I would say retreating from specific commitments that had already been made", said Robert E. Lighthizer, the president's chief trade negotiator.

"Over the course of the last week or so we have erosion in commitments by China", Lighthizer told reporters. In a tweet Wednesday, he reiterated a previous claim that the USA loses $500 billion a year to China because of its unfair trade practices.

Liam Fox, the UK's trade secretary, said he understood the Trump administration's frustration with China over issues such as forced technology transfers and the dumping of goods on global markets, but said the dispute would be better solved through the multi-lateral system.

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