Favourable sentiment in regards to prospects for a Sino-US trade deal remain intact after talks ended yesterday following a third day of discussions. Though the official word from the Office of the US Trade Representative was fairly bland (a formal statement is promised this afternoon) the Wall Street Journal reports that the two sides are making progress toward an agreement but leaving the thorniest issues to be resolved in higher-level talks. The two sides made progress on issues such as additional Chinese purchases of US goods and services, as well as opening China’s markets further to American capital, but remain divided on thornier issues including a reduction of Chinese subsidies to domestic firms and protection of intellectual property, according to sources.
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