US, China said to work on multiple memorandums for trade deal

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Some of the specifics of the deal, namely US demands that China reform some of its economic policies, are stalling talks, Reuters reported Wednesday.

The trade war has had stark consequences on the global economy, slowing down growth, skewing supply chains and disrupting manufacturing. Delegations from both sides are meeting Thursday, with meetings expected to last through Friday.

It is considered the most significant progress yet toward ending a seven-month trade war, according to report from Reuters.

It's expected that President Trump and President Xi Jinping will meet before any deal is finalized.

One source cautioned that the talks could still end in failure.

The question of technology transfers and protection for USA intellectual property has been one of the most contentious in the dispute, with the US accusing China of stealing the results of US research and development to get advance its own development, and also of forcing US firms to give their technology to Chinese companies to gain access to China's market.

Trump administration officials also object to non-tariff barriers in China, including industrial subsidies, regulations, business licensing procedures, product standards reviews and other practices that they say keep U.S. goods out of China or give an unfair advantage to domestic firms.

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China replied issuing tariffs worth $110billion worth of United States goods. The United States is offering no real concessions in return, other than to remove the tariff barriers Trump has imposed to force change from China.

The two sides were discussing an enforcement mechanism for the deal, the source said.

The U.S.is also asking China to keep the value of the yuan stable to neutralize any effort by Beijing to devalue its currency to counter U.S. tariffs, according to other people familiar with the ongoing talks. "The purchases would be on top of pre-trade war levels and continue for the period covered by the memoranda", adds the report. The White House also plans to hike tariffs on $200 billion worth of Chinese imports from 10 percent to 25 percent.

The urgency to reach an agreement was highlighted also by the US President, who told reporters in the Oval Office: "I think they're trying to move fast so that doesn't happen".

Trump has threatened to extend the tariffs to an additional $267 billion in Chinese goods if a trade deal is not reached by the March 1 deadline.

It is possible the talks won't resolve all the differences, and it will be up to the two heads of state to make a final decision, the official said.

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