United States sends China to-do list to reduce trade imbalance

China, US in talks to avert trade war

A new twist in the trade dispute between China and the U.S. After days of harsh words, the two sides are now quietly searching for a resolution.

Global shares rose Tuesday as news that the USA and China are open to negotiating to avert a trade war put investors in a buying mood. S&P 500 futures added 0.5 per cent to 2,672.80. The Dow closed almost 670 points higher. That announcement followed a news report saying USA officials submitted a list of requests that China open up its markets. Optimistic messages from both Washington and Beijing apparently eased investor fears.

"Relevant countries should obey worldwide law and basic norms of global relations and avoid further escalating confrontations", said Chinese Foreign Ministry spokesperson Hua Chunying at a press conference.

The Wall Street Journal reported that the U.S. and China have "quietly started negotiating" and that U.S. Treasury Secretary Steven Mnuchin is considering a trip to Beijing for talks.

In response to the USA tariffs on steel and aluminum imposed Friday, China that day proposed its own tariffs of up to 25% on 128 goods like pork and wine.

The Chinese government announced a list of retaliatory tariffs it would impose on about $3 billion worth of USA exports, in response to a separate set of US tariffs on steel and aluminum imports.

The U.S. wants to see concrete steps toward reducing its trade deficit with China by $100 billion over the next year.

In a statement, he said "With regard to trade imbalances, China and the United States should adopt a pragmatic and rational attitude, promote balancing through expansion of trade, and stick to negotiations to resolve differences and friction".

US officials said they're determined to press China to lower tariffs on cars and open up its financial services sector. China's imports of US -built motor vehicles totaled $10.6 billion in 2017, about 8 percent of the country's overall USA imports by value, according to USA government data.

"The tariffs on China are a response to long-standing complaints that Beijing unfairly requires USA companies to share their technology as a cost of doing business in that country", NPR's Scott Horsley reported.

CGTN's Mike Walter talks with David Nelson, chief strategist with Belpointe Asset Management, about the trade negotiations between China and the U.S.

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