Trade Negotiators Hold Constructive Talks: Kudlow

Top US and Chinese negotiators held phone talks to resolve their trade war and White House economic adviser Larry Kudlow told reporters that the talks "went constructively" but it was "too soon for details".

Talks had broken down in May over US accusations that Beijing had reneged on its commitments, and the dispute escalated with the two sides exchanging steep increases in punitive tariffs.

But Donald Trump and Xi Jinping agreed to revive negotiations when they met on the sidelines of the G20 summit in Japan on June 29.

US Treasury Secretary Steven Mnuchin and Trade Representative Robert Lighthizer spoke with Chinese Vice Premier Liu He and Commerce Minister Zhong Shan overnight on Tuesday.

In an interview with the Fox Business Network, Kudlow described the discussions as "preliminary" and said meetings will "probably" be arranged, but did not give more details.

Kudlow noted that Trump has agreed to hold off on imposing new tariffs and will allow certain US products to be sold to Chinese telecom giant Huawei.

"Having said that, we have a very strong – I want to underscore this – a very strong expectation that China will really shortly, maybe immediately, begin to purchase US agricultural products," he told the US broadcaster.

The Chinese commerce ministry said in a brief statement that the two sides exchanged "opinions on implementing the consensus reached between the two countries' heads of state in Osaka".

Washington and Beijing have hit each other with punitive tariffs covering more than US$360 billion in two-way trade and those duties remain in place.

Asked about speculation that Beijing may be waiting to see how the race plays out, Kudlow said it "would be a very big mistake on their part".

"I think that kind of thinking would probably do great damage to these trade talks," he said.

But he suggested that the US was in no hurry to finalise a deal.

"Speed is not an issue, quality is the issue," Kudlow said. "And so I make no forecast on that and reiterate this view. There's no timetable, none of that stuff." (AFP)