US, Chinese officials try to head off trade war

Trump officials set for new round of China trade talks at White House

Trump officials set for new round of China trade talks at White House

Navarro fought with Mnuchin during their trip to Beijing, shouting and cursing at the treasury secretary over his approach to the trade talks with their Chinese counterparts, two sources familiar with the incident told CNN. The two are seen here in March at a White House ceremony with Commerce Secretary Wilbur Ross, second from left, and U.S. Trade Representative Robert Lighthizer.

Trump administration officials are gearing up for a new round of trade talks with Chinese officials at the White House on Thursday after a US trade delegation traveled to China earlier this month. There has been no folding as the media would love people to believe.

He added that, "We have not seen China's demands yet".

A long-standing rift between Treasury Secretary Steven Mnuchin and the President's nationalist trade adviser Peter Navarro hit new levels on the sidelines of trade talks in Beijing earlier this month.

U.S. -Chinese trade relations are on shaky ground.

Mnuchin and Navarro are both very close to Trump, but have much different viewpoints on trade policy.

China's Vice-Premier Liu He leads the trade delegation from Beijing. Liu is now in Washington, D.C., for meetings and is expected to meet with White House officials Thursday and Friday.

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An earlier report from Bloomberg news cited two administration officials who claimed that White House trade adviser and noted China hawk Navarro had been cut out of the negotiations. He co-authored a 2011 book entitled "Death by China: Confronting the Dragon - a Global Call to Action", which focused on his perceptions of China's economic policies. Navarro had previously been isolated by other senior officials before the president promoted him earlier this year.

Versions of their disagreement were first reported Wednesday by Bloomberg and Axios.

The talks will start as USTR finishes up public hearings on the first batch of United States tariffs on US$50 billion worth of Chinese goods proposed as punishment for alleged violations of USA intellectual rights.

Bloomberg cited administration officials who said Navarro did not work well with the team when the US trade delegation, headed by Treasury Secretary Stephen Mnuchin, met with Chinese trade officials in Beijing earlier this month. White House officials knew that China wanted restrictions to be loosened, but the fate of this company had not been part of the White House's original negotiating platform. A senior White House official and a source familiar with the matter said Navarro is not now expected to take part in the talks.

According to press reports, Mr Navarro sparred with Mr Mnuchin over his handling of the China talks and was barred from attending the meetings this week. An administration official confirmed Mnuchin and Liu added one-on-one meetings to the schedule during the trip, but said no team meetings were scrapped as a result.

Neither country has imposed the tariffs.

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