US and Chinese negotiators extended trade war talks into a third day on Wednesday, with President Donald Trump boasting that discussions to resolve the dispute were going “very well”.
An American delegation has been in Beijing since Monday for the first sit-down talks since Trump and Chinese leader Xi Jinping agreed to a three-month truce on December 1.
Asian markets rose on increasing optimism that the two sides would be able to hammer out a deal ahead of a March deadline and avert further import tariff hikes.
“Talks with China are going very well!” Trump tweeted after the second day of negotiations on Tuesday.
The US delegation, led by Deputy Trade Representative Jeffrey Gerrish, was supposed to end its visit on Tuesday.
But a US government official told AFP on condition of anonymity that “the trade talks have continued today (Wednesday)”, without providing more information.
Washington has been clamouring for an end to the alleged forced transfer — and even theft — of American technology, as well as steep government subsidies for Chinese companies.
The Trump administration also wants Beijing to buy more American goods to narrow a yawning trade gap and allow foreign players better access to the Chinese market.
Neither Chinese nor US officials have given any details about the discussions.
US Commerce Secretary Wilbur Ross signalled in a CNBC interview on Monday that there was a “very good chance” of reaching an agreement.
China’s economy was more vulnerable to the fallout from the trade war, he said, noting that Beijing exports more goods to the United States than the other way around.
“I think a deal is very possible and I’ve heard some very encouraging words,” Apple chief executive Tim Cook told CNBC.
“I don’t speak for them obviously,” Cook said in reference to the Trump administration.
“I do talk with them and I give them my ideas and thoughts.”
The US smartphone maker has felt the pinch of the bruising trade spat, and warned that 2018 revenues would miss its forecast — in large part due to a slump in iPhone sales in China.
The temporary ceasefire came after the two sides imposed import duties on more than USD 300 billion of each other’s goods.
Without a resolution, punitive US duty rates on USD 200 billion in Chinese goods are due to rise to 25 per cent from 10 per cent on March 2.
The current trade round coincided with an unannounced visit from North Korean leader Kim Jong Un, who arrived in Beijing on Tuesday for talks with Xi in Beijing ahead of a possible second meeting between Kim and Trump.
China — Pyongyang’s sole diplomatic ally and main source of trade — said it would not use Kim’s visit as a bargaining chip in the US trade talks.(AFP) RUP .