Stocks rise on Us-china optimism
Three days of Us-chinese talks aimed at ending a costly tariff battle wrapped up yesterday in an optimistic atmosphere after President Donald Trump said they were ‘‘going very well!’’
No details were immediately announced, but stocks rose after talks planned for two days were extended to three. Hong Kong’s main market index closed up 2.1 per cent and Tokyo’s rose 1.1 per cent.
The talks that started on Tuesday were the first face-to-face meetings since Trump and his Chinese counterpart, Xi Jinping, agreed on December 1 to suspend further action against each other’s imports for 90 days while they negotiate over US complaints that Beijing steals or pressures companies to hand over technology.
‘‘Talks with China are going very well!’’ Trump said on Twitter.
Washington wants Beijing to change plans for government-led creation of Chinese leaders in robotics and other advanced technologies.
Chinese officials have suggested Beijing might alter its industrial plans but reject pressure to abandon what they consider a path to prosperity and global influence.
Neither side has given any indication its basic position has changed. Economists say the 90-day window is too short to resolve all the conflicts between the biggest and second-biggest global economies.
Chinese exports to the US have held up despite tariff increases of up to 25 per cent on US$250 billion (NZ$369B) of Chinese imports, partly due to exporters rushing to fill orders before more increases hit. Forecasters expect American orders to slump this year.
China has imposed penalties on US$110B of American goods, slowing customs clearance for US companies and suspending issuing licences in finance and other businesses.
Beijing has tried to defuse pressure from its trading partners for more sweeping changes by offering concessions on investment regulations and stepping up purchases of American soybeans, natural gas and other exports.
However, the official Trump put in charge of the talks, US Trade Representative Robert Lighthizer, has focused on pressing Beijing to scrap or change rules Washington says block market access or improperly help Chinese companies.
US companies also want action on Chinese policies they complain improperly favour local companies. Those include subsidies and other favours for high-tech and state-owned industry, rules on technology licensing and preferential treatment of domestic suppliers in government procurement.
The US demands strike at the heart of a state-led development model the ruling Communist Party sees as a great success over the past three decades and is reluctant to give up.