US Mulls Currency Accord With China in Partial Trade Deal

Marco Green
October 10, 2019

The South China Morning Post (SCMP) sent U.S. stock futures into a tailspin, reporting that the negotiations had reached an impasse with "no progress", and that Liu "may leave earlier than expected".

Gains were also supported by a New York Times report saying that Washington would soon issue licences allowing some United States firms to supply non-sensitive goods to China's Huawei Technologies. Bringing back the agreement could be an early sign US-China relations are warming up after over a year of tariff wars.

Chinese and USA trade officials are set to meet for the first time in months on Thursday, in what could be a landmark week in terms of the trade war.

A White House spokeswoman was reported by CNBC's Kayla Tausche saying that the SCMP report on China trade talks was inaccurate.

Speaking to reporters a day before high-level trade talks resume in Washington, Trump said: "If we can make a deal, we're going to make a deal, there's a really good chance".

According to the Chinese-based media, one of the core issues is "forced technology transfers", a requirement to surrender technologies to Chinese firms imposed on foreign companies wishing to enter China's markets.

The discussions concerning an interim deal come after the Trump administration this week further ramped up pressure on Beijing by blacklisting Chinese technology firms over their alleged role in oppression in the far west region of Xinjiang. The US also placed visa bans on officials linked to the mass detention of Muslims from the region.

Without significant progress during the talks, US President Donald Trump is set to hike the tariff rate on US$250 billion worth of Chinese goods to 30 per cent from 25 per cent next Tuesday.

Other flashpoints that have cropped up in recent days include China's swift action to cut corporate ties to the National Basketball Association over a team official's tweet in support of Hong Kong pro-democracy protesters.

Other reports by Click Lancashire

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