U.S., China could settle immediate trade issues - Ross on CNBC

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Trump has already said he is ready to impose tariffs on the remaining Dollars 267 of annual Chinese exports to the USA if the two sides fail to agree on a deal within the 90-day truce period.

The statement came as trade talks between China and the United States were under way in Beijing, the first round of face-to-face discussions since both sides agreed to a 90-day truce in a trade war that has roiled global markets.

He said, "As for whether this move has any impact to the ongoing China-U.S. trade consultations... to properly resolve existing issues of all kinds between China and the U.S.is good for the two countries and the world".

A Chinese foreign ministry spokesman, Lu Kang, said American and Chinese envoys will have "positive and constructive discussions" during meetings Monday and Tuesday.

This is the first illegal incursion by the United States into the South China Sea this year and it coincides with the renewal of negotiations to solve the economic-trade conflict. "Their economy's not doing well", Trump told reporters at the White House.

"I think that gives them a great incentive to negotiate".

Data last week showed manufacturing has slowed in both China and the United States, though the U.S. Labour Department on Friday reported a surge in new jobs in December along with higher wages.

"The U.S. and China should lower trade barriers, end the unproductive tariff war and avoid "managed trade" requirements that micromanage who buys what", said Mr. Nascimento, whose free-trade group is allied with industrialist Charles Koch.

The president has taken heart in China's faltering economy, repeating that it makes Beijing more likely to strike a deal.

There was no immediate USA response to the Chinese complaint. It's their first face-to-face meeting since the two leaders agreed at a Group of 20 summit in Argentina last month not to impose new tariffs that were due to take effect January 1.

"It certainly has hurt the Chinese economy", Ross told CNBC.

Trump on Sunday headed to the USA presidential retreat at Camp David, where he said he would discuss a trade deal with China with senior aides, among other issues. The preliminary skirmishes have already done damage to China's economy and some sectors of the USA economy as well as its financial markets and have had flow-on effects in the greater Asian region and even Europe. It deferred the imposition of the next round of tariffs a year ago, until at least March 1, by agreeing to buy U.S. soy beans and other products and removing the tariff surcharge it had imposed on auto imports from the US. It said the threat of higher USA tariffs was the "dominating factor" for almost half, while others moved due to higher costs or tighter environmental regulation.

Chinese officials are unhappy with USA curbs on exports of "dual use" technology with possible military applications.

The protracted trade war between the top two economies of the world is seen by many as a battle for global leadership.

The current round of negotiations is being held at the vice-ministerial level, with the US' team of negotiators led by Deputy Trade Representative Jeffrey Gerrish. Trump said on Friday he wasn't concerned about Apple's revenue warning.

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