U.S. team to visit China for trade talks next week

U.S. team to visit China for trade talks next week

Washington's goods trade deficit with Beijing hit an all-time high of $US43.1 billion in November, with shipments up by almost a tenth from a year earlier. "That's another reason why it will be challenging for the US consumer to act as world locomotive", said Catherine Mann, global chief economist at Citi and the OECD's former chief economist. "But right now, China is feeling the blow, really, of our tariffs, and I think that that's an appropriate place for us to have taken the relationship given the amount of stuff that they were stealing from us".

The U.S. economy remains strong, with the country's 3.7 percent jobless rate at a almost five-decade low. In October the International Monetary Fund cut its 2019 global growth forecast to 3.7 percent, citing the trade war, and in December Citi trimmed its prediction to 3.1 percent.

China's economy has been decelerating since the government pulled back on bank lending a year ago to try to curb a run-up in debt.

The dispute is "a major factor" in a slowdown in global growth, Song said, and a settlement would "help in arresting the decline of the economies of the two countries and of the world".

The U.S. Federal Reserve's interest rate increases have caused investors to move in and out of various markets, hitting some emerging markets hard.

"One problem for the United States is that many of its large export markets are not growing as quickly", the HSBC analysts said.

Shares of Apple rebounded on Friday after a 10 percent nosedive on Thursday on the revenue warning. "It's oh so reminiscent", said David Rosenberg, an economist at Gluskin Sheff + Associates Inc, saying it was further evidence of a deteriorating outlook for Chinese manufacturing that will weigh on the global economy.

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For his part, the President hasn't publicly endorsed that proposal or any other beyond his initial request for $5 billion. For Democrats, that means they will not put anything on the table beyond the current $1.3 billion for border security.

The U.S. -China trade war came about because of President Trump's controversial stand on the U.S. trade deficit between the two countries.

But the impact of China is enormous.

Trump has said talks toward a deal are progressing well, but it is unclear if Beijing will yield to key USA demands over trade imbalances, market access, and alleged Chinese abuses of intellectual property.

Washington and Beijing have exchanged tit-for-tat tariffs on more than $300 billion worth of goods in total two-way trade, locking them in a conflict that has begun to eat into profits and contributed to stock market plunges.

Those familiar said other USA attendees include Mr Gil Kaplan, Undersecretary of Commerce for International Trade; Mr Ted McKinney, Undersecretary of Agriculture for Trade and Foreign Agricultural Affairs; and Ms Merry Lin, director for global and Asia economics at the National Security Council. In December, factory activity shrank for the first time in more than two years.

"It's not going to be just Apple", Hassett, the chairman of the Council of Economic Advisers, said.