Positive note as talks end
▶ Global markets cheer ‘big step toward solution’
After two and a half days of negotiations full of uncertainties and surprises, Chinese and US officials concluded their latest round of talks on Wednesday in Beijing, with officials sounding a positive note but appearing to be far from a final deal.
While the talks in Beijing marked a big step toward a possible solution to the trade standoff cheered by global markets, further discussions between high-level officials are necessary to tackle tricky issues and uncertainty remains in the delicate relationship between the two economic powers, analysts noted.
China’s Ministry of Foreign Affairs confirmed on Wednesday afternoon that officials had concluded negotiations and said that the outcome of the talks was forthcoming.
But as of press time, the two sides did not release any statement.
Sources close to the matter told the Global Times on Wednesday that while the tasks at the trade talks were daunting,
the atmosphere was “pleasant and candid.”
Asked about the talks at a routine press briefing on Wednesday, Lu Kang, spokesperson for Foreign Ministry, offered only vague answers.
“I believe if the outcome is good, then that’s good for not only the Chinese and the US economies but also the global economy,” Lu said.
The trade talks, which were scheduled to end Tuesday, extended to a third day on Wednesday, after officials worked late into the night on Tuesday.
“The extension shows that the two sides are conducting this round of consultations more seriously,” Lu said.
US officials also sounded positive on Wednesday. Ted McKinney, an official at the US Department of Agriculture and a member of the US delegation to Beijing, was quoted by Reuters as saying, “I think they went just fine.”
He also suggested the outcome was “good” for the US, but did not elaborate, Reuters reported.
Despite the lack of an official statement, major stock markets in Asia and Europe rallied on Wednesday, while US stock futures also extended their gains.
In China, the benchmark Shanghai Composite edged 0.71 percent higher on Wednesday, while Hong Kong’s Hang Seng surged 2.3 percent. In South Korea, the KOSPI index jumped 1.8 percent, while the Nikkei 225 gained 1.1 percent. Major indexes in Europe rose in morning sessions, with the FTSE 100 up 1 percent before midday.
Commodity prices also surged on Wednesday led by crude oil. The West Taxes Intermediate gained more than 2 percent to surpass $50 a barrel, while Brent Crude also rose 2 percent to above $60 a barrel.
Global attention
From the start, the trade negotiations had attracted global attention, as markets watched closely for every bit of news out of Beijing. And there were many distractions and surprises.
On Monday, when the talks began, global attention turned toward an unannounced visit to Beijing by North Korean leader Kim Jong-un.
The same day, the US sent a warship to the South China Sea, prompting China to dispatch its own vessels and aircraft to warn the US and lodge protests.
Later on Monday, news broke that Chinese Vice Premier Liu He, who leads the Chinese negotiating team, made an unexpected appearance at the mid-level meeting. On Tuesday, officials decided to extend the negotiations to a third day.
“Overall, the whole process was very harmonious,” Wei Jianguo, former Chinese vice minister of commerce, told the Global Times on Wednesday. “They were open about it and felt the need to extend the talks to get the job done.”
Media reports suggested that some deals might have been made, including China’s purchase of US agricultural and energy products, and greater access for US firms to China’s market.
“I think it is possible that the two sides agreed on some of these areas, because they are considered easy parts of the whole dispute,” said Wang Jun, deputy director of the Department of Information at the China Center for International Economic Exchanges.
He told the Global Times on Wednesday that China had shown its willingness to import US soybeans and liquefied natural gas a long time ago, which are also important to the US, especially after the damage from the trade war.
On Monday, Chinese companies bought at least three cargoes of US soybeans, totaling about 180,000 tons, while talks were underway in Beijing, Reuters reported.
“I think this round of talks focused on the easy parts. Both sides need to start with something,” Wang said, noting that issues such as intellectual property rights and industrial policies will be addressed by higher-level officials.
Liu, the vice premier, will reportedly travel to Washington for meetings with his US counterpart later this month, if things go well.
“But there are always risks and uncertainties,” Wang said, referring to US President Donald Trump’s threat that he would impose higher tariffs on Chinese goods if a deal is not reached by March.