USA warship sails in South China Sea amid trade talks with Beijing

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The source confirmed to Reuters that the talks were "ongoing", but few other details had emerged.

China has made "stern representations" to the United States after an American destroyer sailed through waters claimed by Beijing in the disputed South China Sea.

After months of US tariffs on Chinese imports and Chinese retaliatory tariffs on USA goods, Trump and Chinese President Xi Jinping held December 1, 2018 meetings at the G20 in Argentina.

United States commerce secretary Wilbur Ross predicted that the United States and Chinaare likely to reach a trade deal, as officials from both nations met for face-to-face talks in Beijingon Monday (New York time).

The U.S.is looking to crack down on China's business practices, including allegations of technology theft along with slashing the trade deficit and getting more access to Chinese markets.


Leaked photographs posted on the South China Morning Post's website showed U.S. officials applauding Liu's appearance, including the U.S. delegation leader, Deputy U.S. Trade Representative Jeffrey Gerrish. Trump wants Beijing to roll back initiatives like "Made in China 2025", which calls for the state-led creation of global competitors in such fields as robotics and artificial intelligence.

Earlier on Tuesday, China approved five genetically modified (GM) crops for import, a move seen as a "goodwill gesture" by some in the USA agriculture industry that could boost China's overseas grains purchases and ease pressure from the United States to open its markets to more farm goods.

USA delegation member Steven Winberg, who is a U.S. assistant secretary for fossil energy, said on Tuesday that the talks are going on well so far, according to a report from Reuters.

The Chinese military has moved to intercept USA warships sailing through the contested South China Sea in the latest of what has been a series of tense encounters involving the two powers in the Asia-Pacific region. "Their economy is slowing much more than I think public data is showing right now", Leland Miller, chief executive officer of China Beige Book, said on Bloomberg TV Tuesday.

"I don't see any linkage with the trade talks", said Glaser. "China's development has ample tenacity and huge potential", Lu said.


The U.S. delegation includes under secretaries from the U.S. departments of agriculture, commerce, energy and treasury, as well as senior officials from the White House. Beijing responded by imposing penalties on $110 billion of American goods, slowing customs clearance for US companies and suspending issuing licenses in finance and other businesses.

U.S. Navy Destroyer, the USS McCampbell, conducted a freedom of Navigation operation (FONOP) in the South China Sea on Monday, Jan. 7, which quickly drew an angry response from Beijing.

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

"We're not confident the trade and economic disagreements will be resolved anytime soon", Eurasia Group wrote in a Monday report.


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