China and the USA reached a modest breakthrough in their standoff over trade, saying they will hold lower-level talks later this month on the spiraling dispute.
Wang Shouwen, vice-minister of commerce, will lead a delegation to the U.S. at the end of August to discuss bilateral trade issues with a team led by David Malpass, secretary of treasury for global affairs, the Chinese Commerce Ministry said in a statement today.
USA futures gained on the news.
The two sides will impose an additional round of tariffs on $16 billion worth of goods from each country effective August 23.
Beijing and Washington started a tit-for-tat trade war in July, each imposing 25 per cent tariffs on the other side's goods.
Beijing has said it will retaliate in kind.
The ministry says the Chinese delegation, led by Vice Minister of Commerce Wang Shouwen, will meet with American representatives led by U.S. Under Secretary of Treasury for International Affairs David Malpass.
The talks are due to happen in late August, but the officials involved won't be as senior as last time.
White House economic adviser Larry Kudlow said the "single biggest event" of 2018 is "an economic boom that most people thought would be impossible". Since those talks ended, the USA and China have been locked in a trade standoff as they slapped tariffs on billions of dollars of each other's goods.
There was no immediate response from the U.S. Treasury to the announcement from Beijing.
Our Country was built on Tariffs, and Tariffs are now leading us to great new Trade Deals - as opposed to the frightful and unfair Trade Deals that I inherited as your President.
But less than 10 days later, the White House said it would push forward on planned tariffs on $50 billion of Chinese imports and press ahead with restrictions on investments by Chinese companies in the U.S.