US and China closer to reaching trade deal, details outlined
US and China have started to outline commitments in principle on issues in their trade dispute, according to Reuters sources familiar with the negotiations.
Officials on both sides are to hold talks on Thursday in Washington to work out the main differences, with more talks to continue on Friday.
One of the disputes being ironed out are demands made by US president Donald Trump and his administration, demanding structural changes be made to China's economy.
It comes after a 90-day truce that Trump and Chinese president Xi Jinping put in place to put a hold on the tariff trade war, after they met in Argentina last year.
Memorandums of understanding
Reuters sources said the two sides are pushing for an agreement by March 1. Reuters sources have reported that negotiators are drawing up six memorandums of understanding (MOUs) on issues including: technology transfers, cyber theft, intellectual property rights, services, currency, agriculture and non-tariff barriers.
Reports say that one source mentioned that the talks could possibly end in failure, but work on the MOUs a significant step in getting China to sign commitments on key issues, he said.
Negotiators to work out the finer details
One of the main disputes coming from the US has been accusing Beijing of forcing their companies to do business in China to share their technology with local partners, and to also hand over intellectual property secrets. China has always denied the accusations.
There’s also obeen US objections to non-tariff barriers in China, including industrial subsidies, regulations, business licensing procedures, product standards review and other practices that keep US goods out of China.
On Thursday, top level US trade representative Robert Lighthizer and Chinese vice premier Liu He will lead the remaining talks.
Trump said on Tuesday he thought China had an incentive to move swiftly.
IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.
This information/research prepared by IGA or IGA Group is intended for general circulation. It does not take into account the specific investment objectives, financial situation or particular needs of any particular person. You should take into account your specific investment objectives, financial situation or particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. In addition to the disclaimer above, the information does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any views and opinions expressed may be changed without an update.
Please see important Research Disclaimer.
Live prices on most popular markets
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.