China confirms U.S. trade talks in Beijing next week

US manufacturers say Trump tariffs will bring higher prices, not more jobs

U.S. officials will travel to Beijing for talks on Monday and Tuesday next week, with China's Ministry of Commerce saying it hopes the talks will be "positive and constructive".

Chinese exports to the United States held up through late 2018 despite Trump's tariff hikes.

"We have a massive trade negotiation going on with China".

USA officials are heading to Beijing next week for the first face-to-face talks since Trump and China's President Xi Jinping in December agreed to a 90-day truce in the trade war as they sought to strike a deal.

USA factory activity slowed more than expected in December, according to the Institute for Supply Management (ISM), while Chinese data on Monday showed its manufacturing activity contracted for the first time in more than two years.

A team led by Deputy US Trade Representative Jeffrey Gerrish will come to China to have "positive and constructive discussions" with Chinese counterparts.

That agreement saw China commit to renewed purchases of U.S. agricultural goods like soybeans, in return for the delay of a fresh swathe of tariffs Washington was set to impose on Chinese goods. There are fears of both sides hiking tariffs if no deal is reached. The two sides face a March 1 deadline; the USA has promised to hike its import tax from 10 percent to 25 percent on $200 billion of Chinese products if no deal is reached.

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Chinese economic growth fell to a post-global crisis of 6.5 percent in the quarter ending in September. They criticize his tactics but echo USA complaints about Chinese industrial policy and market barriers.

Back in Argentina, the two leaders agreed a 90-day truce on new tariffs, which is set to expire on March 1.

The makeup of the US team was announced Friday by the trade representative's office.

Other administration officials at the talks will include Mr Gregg Doud, the US Trade Representative's chief agricultural negotiator, and Mr David Malpass, the Treasury Department's Undersecretary for International Affairs, said the sources.

The spat has rattled companies and financial markets that worry it would drag on global economic growth that is showing signs of slowing.

Some manufacturers that serve the United States have shifted production to other countries. An escalating trade war would make the situation even worse.

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