Warm Noises But No Sign Of Deal In Sino-US Talks

The latest round of US-China trade talks were "constructive" according to Treasury Secretary Steven Mnuchin, a sign of hope that Washington and Beijing could seal a deal to avert damage to the global economy.

"They were constructive discussions between both parties, that's all we're going to say," Mnuchin was quoted as saying by CNBC following a two hour negotiating session.

Moments earlier, Vice-Premier Liu He shook hands Mnuchin and Trade Representative Robert Lighthizer before driving off.

At his hotel, Liu said the talks had gone "fairly well", according to Bloomberg, which nevertheless cited sources saying there had been little progress.

President Donald Trump said Friday he was in no hurry to reach a deal with Beijing, arguing the United States was negotiating from a position of strength.

Just hours earlier, Washington had pulled the trigger on an increase from to 25 percent from 10 percent in punitive duties on US$200 billion worth of Chinese imports. Beijing responded vowing to take "necessary countermeasures".

The glimmer of hope cheered Wall Street, which had been under pressure all week, with the benchmark Dow Jones Industrial Average regaining much of the morning's losses but staying in the red. European and Asian markets seemed more optimistic.

After weeks of rising optimism, the tone out of the White House has veered to anger and then nonchalance.

On May 5, Trump erupted on Twitter, saying the talks were progressing too slowly, accusing the Chinese of backing out of commitments and announcing the tariff increase.

But in a series of early morning tweets on Friday, he said, "Talks with China continue in a very congenial manner - there is absolutely no need to rush - as Tariffs are NOW being paid to the United States by China."

The US leader continues to argue that tariffs could in some ways be preferable to reaching a trade deal. "Tariffs will bring in FAR MORE wealth to our country than even a phenomenal deal of the traditional kind," Trump wrote.

Since last year, the United States and China have exchanged tariffs on more than $360 billion in two-way trade, gutting US agricultural exports to China and weighing on both countries' manufacturing sectors.

Trump began the standoff because of complaints about unfair Chinese trade practices.

The US is pressing China to change its policies on protections for intellectual property, massive subsidies for state-owned firms, and to reduce the yawning trade deficit. (AFP)