Trump and Xi talked by phone on Tuesday, no details reported

US-China trade talks resume: US officials

US-China trade talks resume: US officials

In the latest U.S China trade war news, a day after telephonic talks started between the two sides, a top USA official warned that a trade deal with China would "never happen" as numerous contentious issues are hard to resolve.

The phone call between the two sides Tuesday was the first confirmed contact since Xi and President Donald Trump met last month and agreed to resume talks.

Kudlow's comments suggested it was still unclear whether the two sides would resume work from the draft text agreed before that pull-back, as US officials want, or whether they will use a different starting point.

Kudlow said: "There is no time limit on China deal".

Kudlow told reporters the two teams would meet in person in the near future.

Craig Allen, president of the U.S. The move effectively banned the company from doing business with US suppliers.

Three sources familiar with the state of negotiations said that the Chinese side did not make firm commitments to immediately purchase agricultural commodities.

Meanwhile, the Trump administration on Tuesday chose to exempt 110 Chinese imports from the ambit of high tariffs.

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After his meeting with Xi in Osaka, Trump said he would refrain from imposing tariffs on more Chinese products.

The two sides also deadlocked over Beijing's demand that Trump remove all of the tariffs he imposed on $250 billion in Chinese goods previous year.

"We've had a change in atmospherics", said Derek Scissors, a China expert at the American Enterprise Institute, a business-oriented Washington think tank. "We're not getting anywhere".

The United States had imposed tough sanctions on the company, which American officials say Beijing exploits for espionage.

"Zhong is a hard-liner's hard-liner", said former White House chief strategist Stephen K. Bannon, who remains close to several Trump advisers.

Some China specialists said the Trump administration is overreacting to a minor personnel move. Plus, in a surprise announcement Tuesday, U.S. Commerce Secretary Wilbur Ross said Washington will issue licenses to American companies seeking to sell goods to China's telecoms giant Huawei, so long as the sales pose no threat to U.S. national security. Liu and Xi were childhood friends.

"The negotiating environment is even more severe", the official said. "All Chinese negotiators are on an incredibly short leash". Washington wants Beijing to address what United States officials see as decades of unfair and illegal trading practices. He added both sides discussed ways for a face-to-face meeting.

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