China’s Liu going to US for trade talks

BEIJING/WASHINGTON, May 07 (Reuters): Chinese Vice Premier Liu He will visit the United States this week for trade talks, Beijing said on Tuesday, playing down a sudden increase in tension after US President Donald Trump vowed to impose new tariffs.

US officials have said China has backtracked on substantial commitments made during months of negotiations seeking to end their bruising trade war.

Those concerns prompted Trump to say on Sunday that he would raise tariffs on $200 billion worth of Chinese goods to 25 per cent from 10 per cent by the end of the week, and would "soon" target remaining Chinese imports with tariffs.

Trump's tweets abruptly ended a five-month ceasefire in a trade dispute that has cost the two countries billions of dollars and disrupted manufacturing supply chains.

Fears that negotiations were unraveling drove global stocks and oil prices lower on Monday, and fed speculation that China could cancel Liu's planned visit.

China's Commerce Ministry confirmed that Liu, who leads the talks for Beijing, will visit the United States on Thursday and Friday. The ministry did not elaborate or give the expected topics of discussion.

Beijing's response to the prospect of new tariffs has been reserved, and on Tuesday, Foreign Ministry spokesman Geng Shuang told a news briefing that mutual respect was the basis for reaching a trade agreement.