Crucial China, US Trade Talks Enter Second Day

Senior Chinese and US officials met in Beijing on Friday for a second day of high-stakes talks aimed at forestalling the growing momentum towards a trade war that could trigger billions of dollars of tariffs.

The US and China are having "very good conversations", Treasury Secretary Steven Mnuchin told reporters before leaving his hotel on Friday morning for the Diaoyutai state guest house, where the talks are being held.

However, officials declined to give details of the discussions.

"I have to get on this elevator and not talk to reporters," White House adviser and noted China hawk Peter Navarro said as he left his hotel.

During an event in Washington, US Vice President Mike Pence's economic adviser Mark Calabria said the first day of talks had been "fairly positive", according to Bloomberg News.

The US has given China a "detailed list of asks", he said, adding that Washington wants Beijing to lower tariffs to match the American level.

Liu He, vice premier in charge of the economy, is leading the discussions for China.

China's state media showed little optimism that the trade talks would bring a breakthrough, suggesting that the best case scenario would be a further deterioration in the current situation.

"If the two sides do not strike a deal, and they merely agree to keep talking, we ought to consider that a positive outcome," said an editorial in the state-run China Daily. "Let us hope that the US delegation has come with the willingness to talk sincerely rather than with the design to cause injury." (AFP)