China protests U.S. warship as trade talks start

President Donald Trump speaks in the Rose Garden of the White

President Donald Trump speaks in the Rose Garden of the White

Last month, Trump and Chinese leader Xi Jinping met and agreed to hold off on further tariffs for 90 days.

Monday's events also came as China and the US began talks in an attempt to settle a trade war that has cost both countries billions of dollars. While both sides have expressed an interest in settling the fight, China complained of a sighting of a US warship in what it said were Chinese waters.

But even as both sides kicked off talks in Beijing, the U.S. riled the Chinese on Monday when it sailed navy destroyer USS McCampbell near the disputed Paracel islands in the South China Sea.

Responding to questions about the impact such provocative actions will have on the ongoing China-U.S. trade consultations, Lu said it would be beneficial to both countries as well as the world to properly solve various problems between China and the U.S., including the trade issues. "Their economy's not doing well", Trump was quoted as telling reporters at the White House.

"I think that gives them a great incentive to negotiate".

China on Friday cut bank reserve requirements amid slowing growth at home and pressure from the United States tariffs.

Trump, who has been accusing China of indulging in unfair trade practices contributing to the huge trade deficit amounting to United States dollars 375 billion, sounded positive note by saying that negotiations between the two sides were going "very well".

"From the beginning we have believed that China-U.S. trade friction is not a positive situation for either country or the world economy".

"For example, with [resuming] buying US soybeans, it is because China has no choice but to buy. We have firm confidence in the strong long-term fundamentals of the Chinese economy".

China's foreign ministry on Monday confirmed that Wang would deliver a keynote speech at Davos.

Chinese officials have said new measures will combat intellectual property theft, indicating that Beijing may make major changes to its "Made in China 2025" initiative, which calls for state-led creation of champions in robotics, artificial intelligence and other fields.

If there is no deal by March 1, Washington has said it will go ahead with a sharp hike in tariffs on Chinese goods originally set for January 1.

In March, when the tariff tit-for-tat was in its infancy, President Trump suggested the US might impose up to $60 billion worth of tariffs on Chinese goods. The economy needs certainty. "We have lodged stern representations with the USA side".

For their part, Chinese officials are unhappy with US curbs on exports of "dual use" technology with possible military applications.

This time around, though, the U.S. has sent members of the Office of the U.S. Trade Representative, including Deputy Jeffrey Gerrish, USTR Chief Agricultural Negotiator Gregg Doud, and Ted McKinney, the Under Secretary for Trade and Foreign Agricultural Affairs at the U.S. Department of Agriculture.

Trump on Friday said he was not concerned about Apple's revenue warning.

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