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China raps US warship sailing in disputed sea

07 January 2019

Delegates from the U.S. and China on Monday began the crucial face-to-face negotiations here to ease a bitter trade war between the world's two largest economies amid growing concerns about China's slowing economy and its impact on American businesses.

China has protested the latest sailing of a US warship near a group of disputed islands in the South China Sea, the Foreign Ministry said Monday.

Asked about the timing of the operation during trade talks, Lu said resolving issues would help both countries and the world.

But US President Donald Trump on Friday said: "I think we will make a deal with China".

The American side in the trade talks is being led by a deputy US trade representative, Jeffrey D. Gerrish, according to the USA government. "I don't think it will proceed that fast".

In his New Year address, Mr. Xi said despite the slowdown the Chinese economy stayed within a reasonable range in 2018. The two sides have provided scant information about the discussions.

Trump has imposed tariffs to pressure Beijing to change its practices on issues ranging from corporate espionage to market access and industrial subsidies. They complain China's companies are treated unfairly in national security reviews of proposed corporate acquisitions, though nearly all deals are approved unchanged.

An editorial in the nationalist state-owned tabloid the Global Times on Monday said China would not back down and cave to USA demands.

The trade clash reflects American anxiety about China's rise as a potential competitor in telecommunications and other technology.

"Right now, it appears that China is [suffering the most] but if you start looking at what's happening in the United States, the volatility on the market, the long-term affects of this I think you'll find that both are suffering", Tangen said.

The talks are going ahead despite tensions over the arrest of Meng Wanzhou, chief financial officer of Chinese technology giant Huawei, in Canada on USA charges related to possible violations of trade sanctions against Iran.

The White House said in December the two sides would negotiate "structural changes with respect to forced technology transfer, intellectual property protection, non-tariff barriers, cyber intrusions and cyber theft".

The ratcheting dispute has pummelled confidence in China, sending the stock markets tumbling while the yuan has fallen against the dollar. American officials worry those might erode US industrial leadership.

"If Beijing had wanted to raise the white flag, it would have done so already", it said. Apple's stock fell almost 10 percent after the announcement.

So far demand for Australian commodities has held up (and will benefit from a fresh bout of stimulus-inspired infrastructure investment) but a full-scale trade war would have much more severe impacts on a global economy which is over-leveraged and already slowing and an Australian economy which (at the household level at least) is over-leveraged and also appears to be slowing. Trump said on Friday he wasn't concerned about Apple's revenue warning.

China raps US warship sailing in disputed sea