Pompeo warns Trump may abandon an imperfect China deal

US Secretary of State Mike Pompeo has warned that President Trump could still walk out of negotiations for a trade deal between China and the United States, even as the two superpowers appear close to a resolution.

According to a transcript released by the State Department on Tuesday, Pompeo told Sinclair Broadcasting Group that "things are in a good place, but it's got to be right" going on to say that Trump might well walk away from a deal that was deemed less than perfect.

Pompeo was speaking after meeting Iowa farmers, who have been hit hard by US sanctions on China as Beijing cut its imports of agricultural items such as oilseeds and grains in retaliation to US tariffs.

"This has to work for America. If it doesn’t work, we’ll keep banging away at it. We’re going to get to the right outcome. I’m confident that we will," said Pompeo.

Trump rejected an agreement with North Korea last week after the Hermit Kingdom's leader Kim Jong Un's proposals failed to include complete denuclearisation and had earlier indicated a willingness to abandon talks with the Chinese.

The news comes as Chinese Commerce Minister Zhong Shan said that trade talks between the two nations had been "difficult" although he believed that the world's economy stood to benefit from any agreement.

Shan also said that teams working on the deal had to work overtime "day and night", further commenting that "we still have a lot to do".

Speaking at China’s annual meeting of parliament, Guo Shuqing, chairman of the China Banking and Insurance Regulatory Commission, said: "On the opening of the financial sector, China and the United States absolutely can reach agreement. Though at present there may be a few small disagreements, the problems are not that great."