United States wants to make 'meaningful progress' in China trade talks

The long-running trade war between China and the US has seen them swap tariffs on goods worth hundreds of billions of dollars. AFP  Ina Fassbender

The long-running trade war between China and the US has seen them swap tariffs on goods worth hundreds of billions of dollars. AFP Ina Fassbender

The increase will raise the tariffs from 25% to 30%, the Washington Post reports.

Meanwhile, China is considering whether to permit renewed imports of American farm goods including soybeans and pork, according to people familiar with the situation, potentially taking some pressure off US states with large numbers of Trump supporters.

The moves signal an easing of tensions between the two economic superpowers ahead of a much-anticipated meeting of top-level negotiators next month.

Late Wednesday, Trump tweeted that he was putting off the 5 per cent increase in tariffs on Chinese goods, originally set to take effect the first day of next month until Oct 15 - out of respect for the celebration of the 70th anniversary on Oct 1 of the founding of the People's Republic of China.

Speaking at a weekly news briefing in Beijing on Thursday, Chinese Commerce Ministry spokesman Gao Feng said China welcomed the USA delay to its scheduled tariff hike on billions of dollars worth of Chinese goods. At the end of July, Warren rolled out a plan laying out a number of criteria, including environmental standards and labor rights, that countries would need to meet in order to order to be able to trade with the U.S.

There are still many uncertainties in the coming trade talks.

It would seem that Trump is simply ignoring the warnings from banks, rating agencies and economists of the dire consequences for the United States economy of an escalating trade war with China.

"The fact of the matter is China, not the very deficit, they're stealing our intellectual property, they're violating the World Trade Organization, they're dumping steel on us", former Vice President Joe Biden said.

Reports said the proposal is likely to fail, however, as it is dependent on the LSEG scrapping a planned $27bn takeover of United States financial data provider Refinitiv, which the three-centuries-old exchange said it "remains committed" to buying. Instead, the penalties take effect October 15.

Chen Huaisheng, an expert at the China Chamber of International Commerce's legal services department, said the measure will support the development of relevant companies and boost their confidence.

There are also concerns about ongoing unrest in Hong Kong and the influence of China in the group, the Financial Times reported.

The exemption will take effect on September 17 and be valid for a year through to September 16, 2020, it said.

Asked whether the purchases were part of a deal to relax USA sanctions against Chinese tech giant Huawei, Gao said, "I don't know that such negotiating conditions exist".

If Trump thought it was a brilliant idea to ban Chinese technology giant Huawei, it will force China to establish new production, supply and value chains that exclude the US.

Private buyers from China have started making price inquiries for US soybean cargoes in November and December, according to people with knowledge of the matter.

Mr Trump has imposed or announced penalties on about 550 billion dollars (£445 billion) of Chinese products, or nearly everything the United States buys from China.

Senior White House adviser Peter Navarro this week urged investors, businesses and the public to be patient about the trade dispute.

Earlier on Wednesday, a survey by a prominent American business association showed the trade dispute was souring the profit and investment outlook for USA companies operating in the world's second-biggest economy.