White House reportedly rejects trade planning meeting with China

Selling on Wall Street picked-up on Tuesday afternoon following a report that the White House had cancelled a meeting between top US and Chinese trade officials.

According to broadcaster CNBC, which cited a source familiar with the situation, the White House "rejected a trade planning meeting between members of the US Trade Representatives' Office and two Chinese vice ministers to discuss enforcement of intellectual property rules."

The two sides had been scheduled to meet over the course of the week.

The White House reportedly told CNBC that "the teams remain in touch in preparation for high level talks with Vice Premier Liu He at the end of this month."

Another source told CNBC that the talks might still take place by phone.

To take note of, at the weekend, Reuters had reported that Washington was emphasising the need to put in place compliance mechanisms as part of any deal on trade with China.

According to two sources briefed on the ongoing trade negotiations, at least one of which was Chinese, the US wanted "periodic assessments" and claimed that it "looked like humiliation".

"But perhaps the two sides could find a way to save face for the Chinese government," it reportedly added.

Come Monday, and speaking at the World Economic Forum in Davos, Blackrock chief, Steve Schwarzman, said US officials were "very focused" on China's compliance with any trade deal that might be agreed, Bloomberg reported.

Noting that it might be a 'deal-breaker', he proposed that Beijing create a "compliance bureau" under the supervision of China's vice-premier.

"That enforcement mechanism becomes key, and that's not something that the Chinese are used to," Schwarzman reportedly said.