China and U.S. trade talks summary and sound bites from two day discussions in Washington

Liu He, who is heading up China’s trade delegation, delivered a letter from Xi, which said China hoped both sides would meet halfway. There were some mixed reports coming through. One reported that Trump had hinted that the March 1 deadline, when the US is expected to increase tariffs on Chinese goods, could be extended.

However, while hailing “tremendous” progress in this week’s discussions, which aimed to narrow the gap between the two countries as the March 1 deadline for a deal draws closer, Trump has insisted that if a satisfactory deal is not reached, the tariffs will be imposed at the deadline. China is pinning all hopes on another meeting between Mr. Trump and Chinese leader Xi Jinping next month as a wide gap still remains between U.S. demands and what Beijing is willing to offer, according to people briefed on the matter. 

US Pres. Trump On Twitter @realDonaldTrump:

"Looking for China to open their Markets not only to Financial Services, which they are now doing but also to our Manufacturing, Farmers and other U.S. businesses and industries. Without this a deal would be unacceptable!"

Trump said, hitting the wires midday, " Something will happen with China trade deal," and said that China had opened the financial Industry, but must open the Agriculture market. There were some headlines in news wires that were false reported but quickly confirmed by LIzger that China has offered a one time deal of 5m tonnes of imports of Soya beans. 

Other Trump comments: 

• "Either we get a big deal with China, or we’ll postpone it."
• "China trade negotiators will 'certainly' be talking about intellectual property theft, fentanyl"
• "China's Xi says in letter that he hopes both sides will meet half way to reach early trade agreement."

Meanwhile:

• White House said U.S. Tariffs on Chinese goods will increase unless a satisfactory outcome is reached by March 1.
• White House said trade talks with China covered role of currencies, among other topics.

U.S. Trade representative Lighthizer says:

• The arrest of Huawei executive has no impact on the trade talks with China;
• the two sides did not discuss lifting tariffs during talks in Washington.
• The Objective is to make Chinese commitments in trade deal more specific, all-encompassing, and enforceable.
• Chinese announcement about soybeans in the oval office was new and a surprise.
• China has proposed that the u.S. Trade delegation including Lighthizer and Mnuchin come to China in mid-February, U.S. will respond to that.

Conclusion (Bullish for risk appetite):

• US President Donald Trump said on Thursday that he may combine a trip to meet North Korean leader Kim Jong-un in February with a visit for trade talks with Chinese President Xi Jinping.
• In an Oval Office meeting with China’s Vice Premier Liu He and other members of the visiting trade delegation, Trump hailed “tremendous” progress in this week’s discussions, which aimed to narrow the gap between the two countries as the March 1 deadline for a deal draws closer.
• Positive US-China trade developments could see Antipodes, EM-FX, commodity complex and general risk assets higher.