United States (US) considering a currency agreement with China as a part of a partial trade deal - Photo: Special

JAKARTA (TheInsiderStories) – United States (US) and China trade truce seems still a long way to go. While, China signaled threat to trade talk if Huawei Technologies Co., Ltd. chief finance director is not released soon.

Its reported, America has rejected trade talks with Chinese officials lead by Vice Premier Liu He. The Chinese official planned to meet US Trade Representative Robert Lighthizer in Washington end of this week.

Liu travel to the US as the two sides work to resolve their disagreements by March 1, when a 90-day truce is due to expire. Several issues to solved such as “forced” technology transfers from foreign companies to Chinese joint venture partners and other firms.

Moreover, US is also wanting Chinese administration to scrap state subsidies and industrial policies that the country’ considers as a discrimination against foreign investors and structural reforms to China’s economy, the official said.

Last year, the Chinese economy posted its slowest annual growth in nearly three decades, according to official figures published Monday in Beijing. The trade war has weighed heavily on the outlook for the world’s second-largest economy.

If an agreement could not reached by March 1, trade tension between US and China may get worse. President Donald Trump has said that he will impose more than double tariff from 10 percent to 25 percent on about half of all Chinese exports to the US.

But, US’ National Economic Council Director Larry Kudlow told CNBC that such reports were false. “With respect, the story is not true. There was never a planned meeting that was canceled,” he said.

While, Secretary of State Mike Pompeo and Treasury Secretary Steve Mnuchin, canceled they’re planned to attend the World Economic Forum (WEF) due to government shutdown. Previously, President Donald Trump tweeted about his own absence from the summit.

In World Economic Forum panel in Davos, Switzerland, Vice Chairman of China Securities Regulatory Commission Fang Xinghai said that his country probably will not significantly reduce its investment into the US government bond market. China is US largest foreign creditor that holds more than US$1.1 trillion treasuries.

“China will continue to be a savings surplus country for some time, though the saving is declining. We have to invest abroad, and the US government bond market turns out to be a good place to invest,” said Fang.

Followed the unclear output on the trade dispute, Wall Street had already been in the red due to downgraded global economic forecasts. This is definitely causing worries to global market.

While, Stocks in Asia slipped in this morning trade on the back of concerns over the state of ongoing US – China trade negotiations. Japan’ Nikkei 225 slipped 0.42 percent while the Topix index declined 0.54 percent in early trade. Meanwhile, South Korea’ Kospi declined 0.29 percent.

Furthermore, the ASX 200 slipped 0.18 percent in morning trade as the major sectors traded mixed. But, the difference reaction showed in Indonesian market. This morning, Rupiah opened in positive territory, up 37 points, while the Jakarta Composite Index slipped 0.24 percent.

by Linda Silaen, Email: linda.silaen@theinsiderstories.com