As a result, the president initiated tariffs that made certain goods imported from China more expensive to us citizens, damping demand for these products. Yet those very pressures, analysts say, give the two countries a stronger incentive to make peace.
The US delegation to China will be led by Jeffrey Gerrish, the deputy trade representative, something which some trade experts believe will mean that the US will be particularly firm in its demands. The longer their trade war lasts, the longer companies and consumers will feel the pain of higher-priced imports and exports. "The US and Chinese working groups [on trade and economic issues] will hold constructive talks on the implementation of important agreements, reached by the leaders of the two countries during their Argentina meeting", the ministry said. White House had earlier said that the tariffs were being imposed in response to China's unfair trade practices that have led to large trade deficit with USA. -China relations will force other USA companies to cut their sales estimates in China.
Weak sales at Apple and Cargill, U.S. giants of technology and agriculture, may be the clearest sign yet that President Donald Trump's quest to reset world trade carries costs at home and could isolate the United States as the increasingly fragile engine for global economic growth.
Ties have improved dramatically from their Cold War nadir, though the two countries have since weathered ups and downs over a number of issues including Taiwan, human rights, and trade.
But aside from products facing earlier tariffs - including washing machines, solar panels and metals - Chinese exports to the U.S. have held up better than expected.
Trump and Xi agreed to postpone additional tariff hikes for 90 days, but economists say that is too little time to resolve their sprawling dispute. For 2018, the Dow Jones Industrial Average - America's highest-profile stock market benchmark - fell almost 6 per cent, its worst performance since 2008. The International Monetary Fund estimates that China's economy grew about 6.6 per cent in 2018, down from 6.9 per cent in 2017.
"There are certainly compelling reasons for both sides to reach a deal and avoid further tariff increases", said Cutler, now vice-president at the Asia Society Policy Institute.
Official data this week showed manufacturing has slowed in both China and the United States, though the U.S. Labor Department on Friday reported a surge in new jobs in December along with higher wages.