China made no progress in deputy-level trade talks: SCMP

Rising U.S.-China tensions dim hopes for end to trade war

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However, negotiators heading to Washington aren't optimistic about securing a broad agreement that would end the trade war for good. Led by Chinese Vice Premier Liu He and USA trade representative Robert Lighthizer, the meetings have been a source of anxiety for investors.

The United States and China made no progress in deputy-level trade talks held during Monday and Tuesday in Washington, the South China Morning Post (SCMP) reported, citing unnamed sources with knowledge of the meetings.

Dow futures fell by 300 points nearly immediately, with futures on the S&P and the Nasdaq Composite each taking a 1 percent hit.

The Chinese delegation, headed by Vice Premier Liu He, is planning to leave Washington on Thursday after just one day of minister-level meetings, the report said.

Although some media reports suggested both sides are considering an "interim" deal that would suspend planned further USA tariffs in exchange for additional purchases of American farm products, Trump has repeatedly dismissed this idea, insisting that he wants a "big deal" with Beijing that addresses core intellectual property issues. The happier news pared some of the losses on U.S. and Asian markets alike.

Currently, the Trump administration is looking at introducing this previously agreed upon currency accord with China as part of the trade deal that could also see a tariff increase suspended next week, Bloomberg reported, citing sources familiar with the matter.

Some observers expect the U.S. and China will reach a partial agreement on some issues.

Deputy-level trade talks between United States and Chinese officials this week were supposed to prepare the ground for more fruitful negotiations between top officials scheduled for Thursday and Friday in Washington.

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