China, US look to diffuse trade conflict; talks slated late August

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Trade talks will be held late August.

Liu Weidong, a USA affairs expert at the Chinese Academy of Social Sciences, said a key aspect of Wang's visit was to check whether further formal dialogue between the two nations was possible.

The visit is at the invitation of the United States, the ministry said in a short statement.

Invited by the U.S., the delegation, headed by Commerce Vice Minister Wang Shouwen, will meet with a team of negotiators led by David Malpass, undersecretary for worldwide affairs of the U.S. Treasury Department, the Ministry of Commerce said in a statement (link in Chinese).

While Mr Liu and Mr Ross had also been involved in the four previous rounds, US Treasury Secretary Steven Mnuchin's absence from the coming round rendered it a lower-level meeting.

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Chinese stocks also reversed losses on Thursday morning after the announcement of further trade talks.

U.S. futures also gained, as Dow e-minis gained 0.45 per cent on the news. Worries about damage to the global economy from the dispute have hurt prices, which hit their lowest since June 2017 overnight. Donald Trump's administration is threatening further tariffs on $200bn of Chinese goods, in a bid to pressure United States companies to bring production back to the US.

Washington is due to activate additional tariffs on $16 billion of Chinese goods on August 23, and Beijing has said it will respond in kind.

Trump has insisted on imposing tariffs on China and some US allies for national security reasons, even as Republicans and Democrats alike have warned that the policy will ultimately hurt American workers.

Following that, Washington imposed its first round of 25 tariffs on $34 billion of Chinese goods on July 6 in response to complains Beijing steals or pressures foreign companies to hand over technology. But Trump backed away from the agreement and the two nations have been locked in a tit-for-tat trade war ever since.

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