US and China expected to rekindle trade negotiations

United States negotiators are expected to travel to China next week, it emerged on Wednesday, as the two nations re-enter discussions for another attempt to end their long-running trade war.

The two economic superpowers were widely expected to restart trade talks after US President Donald Trump met with Chinese Premier Xi Jinping at the G20 summit in Osaka last month, where the two leaders agreed to a truce.

White House economic adviser Larry Kudlow appeared to hint at a meeting as he told reporters overnight: "As I read it, it looks like there will be a trip to China and we expect, we hope strongly that China will very soon start buying agriculture products, No. 1 as part of an overall deal and No. 2 as a goodwill gesture."

Chinese purchases of US agricultural products have been a sticking point in negotiations, with Trump having indicated on Tuesday that he could ease restrictions on Chinese telecoms giant Huawei in exchange for increased purchases from American farmers.

Trump administration officials expected to be on the flight to Shanghai include US trade representative Robert Lighthizer and Treasury secretary Steven Mnuchin, while the Chinese delegation will reportedly include commerce minister Zhong Shan.

The most recent attempt at sustained face-to-face negotiations broke down in May, when Washington accused Beijing of attempting to backpedal on prior commitments, leading President Trump to raise tariffs on $200bn of Chinese imports from 10% to 25% and threaten to slap 25% levies on a further $300bn worth of products.

The news of fresh trade talk potential sent Asian markets higher, with the Shanghai Composite climbing 1.1%, Hong Kong's Hang Seng Index rising 0.9%, and Japan's Nikkei 225 edging 0.5% higher overnight.