China and USA resume talks in effort to resolve trade war

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The Presidents of the U.S. and China held a telephone call on Tuesday, the first since the G20 leaders' summit at the end of June.

U.S. and Chinese negotiators have spoken on the phone, continuing discussions to end a trade battle between the world's two largest economies that has upended global supply chains and roiled financial markets.

U.S. Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin spoke with Chinese Vice Premier Liu He and Commerce Minister Zhong Shan on Tuesday in a further effort to resolve outstanding trade disputes between the countries, a U.S. official said earlier in an emailed statement.

The heads of the negotiating teams of China and the U.S. have spoken on how to implement the consensus reached by the Presidents of the two countries, the Chinese Commerce Ministry said on Wednesday.

WASHINGTON, July 9 ― The United States and China are set to relaunch trade talks this week after a two-month hiatus, but a year after their trade war began there is little sign their differences have narrowed.

Scissors, who has at times consulted with Trump administration officials, said that both sides got what they wanted out of the summit - a lowering of the temperature and the avoidance of new tariffs that would have been painful for both sides.

The talks that seemed to be nearing conclusion stalled in May after Mr Trump accused the Chinese side of reneging on commitments.

Since the G20 meeting, Washington has indicated it might allow sales of what it considers "lower-tech" semiconductors to China's Huawei Technologies.

Early last month, President Donald Trump proposed a tariff hike on China worth about $300 billion, following a previous increase in May that raised existing tariffs by 15%.

He also triggered a backlash in the US Congress by agreeing to soften some US export restrictions on components to Huawei, though Trump stipulated that officials would take care to avoid creating new risks to US national security. He also said relaxed U.S. government restrictions on Huawei could help the technology giant but would only be in place for a limited time. United States officials say they will maintain some of the additional tariffs they are charging on Chinese imports.

One Chinese official familiar with the situation said that trade talks would be re-started very quickly, but that there was a "fairly large gap" in the core demands of both countries and it would be a challenge to reach consensus on the toughest issues.

Talks had broken down in May over U.S. accusations that Beijing had reneged on its commitments, and the dispute escalated with the two sides exchanging steep increases in punitive tariffs.

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