China and US nearing trade agreement - report

Negotiations for a trade deal between the US and China are drawing close to a resolution as most outstanding issues have now been agreed upon, according to a report on Wednesday.

Myron Brilliant, executive vice president for international affairs at the US Chamber of Commerce, told reporters that the deal is 90% complete but added that the remaining 10% will be the most difficult part of negotiations as both sides will be required to make concessions.

"Both governments understand the stakes here. We have been encouraged by the tone over the past few weeks," said Brilliant.

Following progress in talks in Beijing, Liu He, China’s vice-premier, will meet US trade representative Robert Lighthizer and US Treasury secretary Steven Mnuchin for "potentially climactic" negotiations on Wednesday in Washington, according to a Financial Times report.

Currently, the biggest negotiating issue is reported to be the removal of US sanctions, which the Chinese would like to take place as soon as a deal is signed, while US negotiators favour a phased withdrawal in order to ensure that Beijing complies with the deal.

A tit-for-tat trade war erupted between the two nations over the last year, with US President Donald Trump now having slapped tariffs on $250bn worth of Chinese goods.

If a deal is reached in the next week, Trump and Chinese Premier Xi Jinping could call a summit to sign the agreement before the end of the month, offering relief to global financial markets.