World

US aims to restart China trade talks

By AAP Newswire

The United States hopes to re-launch trade talks with China after President Donald Trump and President Xi Jinping meet in Japan on Saturday.

However, Washington will not accept any conditions relating to the US use of tariffs in the dispute, a senior administration official said on Tuesday.

President Trump has threatened to impose tariffs on another $325 billion of goods, covering nearly all remaining Chinese imports, if the meeting produces no progress in resolving a host of US complaints about the way China does business.

Washington wants Beijing to come back the table with the promises it withdrew before talks broke down, said the official.

China has shown no softening in its position and said on Monday that both sides should make compromises in the trade talks and that a trade deal has to be beneficial for both countries.

It could prove to be a tricky meeting between the two leaders at the Group of 20 summit meeting in Osaka.

The session will be the first time they have met since trade talks between them broke down in May, when the United States accused China of reneging on reform pledges.

Fears about the ongoing trade dispute have pummelled global markets and hurt the world economy.

Trump advisers have said no trade deal is expected at the meeting but they hope to create a path forward for talks.

But if the President sees no progress and decides to raise tariffs, the relationship between the world's two largest economies would deteriorate further

The case of Chinese tech giant Huawei Technologies Co may come up duringthe talks.

Pressure on Huawei, which the US government has labelled a security threat, has increased in recent days.

The President has indicated a willingness to include the Huawei issue in a trade deal, despite the national security implications cited by his advisers about the company.