President Donald Trump said the first day of high-level trade negotiations between the U.S. and China on Thursday went “very well” and that he plans to meet with the top Chinese negotiator Friday.
The talks between Chinese Vice Premier Liu He, U.S. Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin are expected to resume Friday, Trump told reporters as he left the White House. It’s the first senior-level in-person talks since late July to try and end an 18-month trade war that is taking a toll on the global economy and U.S. manufacturing.
“We just completed a negotiation with China, we’re doing very well, we’re having another one tomorrow. I’m meeting with the vice premier over at the White House, and I think it’s going really well,” Trump said Thursday. “We’re going to see them tomorrow, right here, and it’s going very, very well.”
The U.S. and China have both appeared willing to work toward a partial deal, and leave the more controversial issues for later discussions. However, Trump repeated on Wednesday that he would prefer a complete agreement. The core U.S. demands would commit China to cracking down on the alleged theft of intellectual property and stop forcing U.S. companies to hand over their commercial secrets as a condition of doing business in China.
Without progress, the U.S. is due to increase tariffs on about $250 billion of Chinese imports to 30% from 25% on Oct. 15. More duties on $160 billion of Chinese imports are due Dec. 15.
“Unlike much of this week’s noise, the announcement of a meeting tomorrow is significant,” Clete Willems, a partner at Akin Gump who served previously served as a trade adviser to Trump. “I’ve been in that room in the past, and the president’s direct involvement has always helped move things forward.”
Stocks rallied on Friday amid growing hopes that the U.S. and China can negotiate a trade truce. The Stoxx Europe 600 Index advanced a third day, with tech firms and banks pacing gains. Equities rallied throughout Asia, with shares in Hong Kong getting an extra lift
Currency Deal
Bloomberg reported Wednesday that the White House is looking at rolling out a previously agreed currency pact with China as part of an preliminary deal that could also see next week’s planned tariff increase suspended, according to people familiar with the plans.
Separately, Bloomberg is reporting that China plans to ask the U.S. to lift sanctions on its biggest shipping company, citing people familiar with the matter.