U.S. Treasury Secretary Steven Mnuchin and U.S. Trade Representative Robert Lighthizer greeted Chinese Vice Premier Liu He on the steps of the USTR office before a meeting in which they will seek to narrow differences enough to avoid a scheduled October 15 tariff rate increase on US$250-billion worth of Chinese goods.
"China is having a hard time at this moment".
I reckon the dollar flows we're seeing this morning could be in part related to the significant strengthening in the yuan earlier on - after the Bloomberg report of a possible currency pact in the partial US-China trade deal.
"Big day of negotiations with China", Trump said on Twitter.
Early on Thursday, Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin began a thirteenth round of economic negotiations with a delegation led by Vice Premier Liu He.
But Clete Willems, a former Trump trade advisor, said Wednesday that a partial deal could be the president's best move. We have some tremendous deals under negotiation.
The mood surrounding the talks soured this week when the US government blacklisted 28 Chinese public security bureaus, technology and surveillance firms and imposed visa restrictions on Chinese officials over allegations of abuses of Muslim minorities in China.
"I've never seen China respond with concessions to someone throwing down the gauntlet in this manner", said Scott Kennedy, a China trade expert at the Center for Strategic and International Studies in Washington.
I'm very happy right now.
In return, Beijing would expect a pause on planned increases in United States import tariffs, which are now scheduled to increase in waves through December. Despite what the news was saying, there is no inflation.
"I think neither side will admit it but I think they're both under pressure to find a way to forestall the next set of tariff increases", she said. Their supply chain is breaking up like a broken egg.
"We all know the next round of tariffs is going to hurt the United States as much or more than China", Wendy Cutler, vice president of the Asia Society Policy Institute, told AFP.
Commerce Secretary Wilbur Ross said in Sydney on Thursday that the tariffs were working, forcing Beijing to pay attention to US concerns about its trade practices.
"You could call it worth or value of our country".
We have the 200 day EMA which is just above the most recent rally, and it's likely that the market won't be able to break above there. "It's stronger", he said.
"It's either a big deal or no deal", he said, adding that any attempt to reach an incremental bargain would be a "miscalculation by China". "There's a really good chance", Mr. Trump said.