Investors will be looking to see if both sides can hammer out a deal before a March 1st deadline to avert higher USA tariffs on Chinese goods.
U.S. Treasury Secretary Steven Mnuchin, a member of the U.S. trade delegation to China, leaves a hotel in Beijing, China February 13, 2019. And President Donald Trump's aggressive strategy has failed to produce a reduction in the United States trade deficit with China, which he set as a primary goal.
A new round of trade talks between the US and China begins in Beijing this week, with both sides hoping to reach a trade deal by the end of this month. Last week, Trump said that he would not meet Xi before the deadline, but further planning for a summit had not been reported.
Members of a U.S. trade delegation including deputy USA trade representative Jeffrey Gerrish left a Beijing hotel on Tuesday (Feb 12) on their way to the second day of talks with Chinese officials.
As a result, some aides privately acknowledge the most likely scenario is for the March 1 deadline to be extended, and for tariffs on some $200 billion in Chinese imports not to be raised to 25 percent as Trump has threatened.
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U.S. President Donald Trump said on Tuesday that he could see letting the March 1 deadline for reaching a trade agreement with China slide a little, but that he would prefer not to and expects to meet with Chinese President Xi Jinping to close the deal at some point.
White House senior counselor Kellyanne Conway said a meeting was still possible soon, telling Fox News Channel that Trump wants a deal with China, but it must be "fair to Americans, and American workers and American interests". Officials have said March 1 is a "real deadline" for reaching a deal.
These include accusations of intellectual property theft and forcing American companies to share their technology with Chinese firms. "Right now it is in place but that is right now", the official told CNBC.
The talks kicked off in Beijing with discussions among deputy-level officials on Monday before minister-level meetings later in the week. However, strident White House China critic Peter Navarro was not listed as part of the USA team.