US, China leave future of trade talks unclear

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Trump and his officials have repeatedly accused Beijing of the "theft" of American intellectual property and of forcing USA corporations to transfer technology to their Chinese partners as the price of doing business in China. In fact, the two sides may be even further apart on these underlying issues like forced technology transfer and intellectual property protection, among others, according to Bloomberg.

China was believed to be preparing its own separate statement on the talks.

The U.S. Trade Representative said China's delegation pledged to buy more energy and agricultural products and manufactured goods from the U.S.

U.S. -CHINA TALKS: Stock markets have jumped over the last two weeks as investors grew more hopeful that the U.S. and China will resolve the trade tensions that have been brewing over the past year.

Increased purchases by China of United States soybeans, oil, liquefied natural gas and financial services are viewed as easier to achieve than major changes to China's industrial policies aimed at transferring USA technology to Chinese firms.

The second day of trade negotiations coincided with an unannounced visit by North Korean leader Kim Jong Un for talks with Xi in Beijing, amid speculation of a second meeting between Kim and Trump.

World stocks extend their gains to hit a near-four week high and oil prices rose on Wednesday on optimism that the United States and China may be inching towards a trade deal, soothing fears an all-out trade war could hit a slowing global economy.

Washington imposed import tariffs on hundreds of billions of dollars of Chinese goods previous year and threatened further pressure Beijing to change its practices on issues ranging from industrial subsidies to intellectual property.

Jon Cowley, a senior lawyer at Baker McKenzie's global commercial and trade practice group, said he expected that negotiators may have put together a framework for an agreement, but that existing tariffs would not be fully eliminated unless China met the United States "all the way". Chinese officials say their companies are treated unfairly in national security reviews of proposed corporate acquisitions, though nearly all deals are approved unchanged.

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"What really matters here is what enforcements will the USA have when the Chinese don't follow through", Scissors said, adding that this would need to entail a threat to reimpose tariffs by a certain date. The gains for USA indexes faded slightly after President Donald Trump and Democratic leaders said Trump cut short a meeting on ending the partial shutdown of the federal government.

The talks were initially scheduled to end on Tuesday, but extended past their deadline.

Today, a short statement was released by the Office of the U.S. Trade Representative, which ended by saying, "The delegation will now report back to receive guidance on the next steps".

U.S. Treasury yields climbed to the highest this year, helped by improved risk appetite, but retreated following dovish commentary from Fed speakers and a strong 10-year note auction.

The discussions "went just fine", he said without elaborating. No timing was given and it wasn't immediately clear if the US delegation would release a statement.

"I hope too that we'll make progress on all of the other places whether China's not behaving in the way that we wish it would, whether that's their cyber activity that has had a real impact, whether that's the theft of intellectual property, which has hurt American businesses".

"These issues are much more hard to solve immediately but are, frankly, much more compelling to USA companies", said Jake Parker, vice president for China operations of the U.S.

"We can confidently say that enough progress was made that the discussions will continue at a higher level", said Craig Allen, president of the U.S.