Officials to resume trade talks

WITH a March 1 deadline fast approaching, US and Chinese officials resume negotiations this week to prevent escalation of a trade dispute that has major implications for the global economy.

China’s economy already has shown signs of slowing, while the trade war has shaken the confidence of US businesses, as retaliatory tariffs have raised prices and helped choke off a key export market.

And President Donald Trump’s aggressive strategy has failed to produce a reduction in the US trade deficit with China.

Under the looming threat of a surge in tariffs once the 90day truce expires, financial markets worldwide have lost ground in recent days as comments about the status of the talks turned more cautious.

US Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin will lead the US delegation for the third round of talks on Thursday and Friday in Beijing.

While officials seemed optimistic after talks last week in Washington, more recent comments have jarred financial markets, amplifying concerns about how the dispute will affect global growth.

MrTrump said on Thursday he did not expect to meet his Chinese counterpart Xi Jinping before a March 1 deadline for the two economic superpowers to reach a deal.

Mr Trump had said final resolution of the trade dispute would depend on the meeting with Xi “in the near future” but told reporters it had not yet been arranged.

White House economist Larry Kudlow said while Trump was “optimistic” about prospects for a deal, there remained a “sizable distance” separating the two sides.

The dispute has escalated to encompass $360 billion in trade between the two economic superpowers