US treasury secretary to lead trade talks with China

White House trade and manufacturing adviser Peter Navarro a member of the U.S. trade delegation to China leaves a hotel in Beijing

China said Thursday it doesn't want to see increased trade tensions with the U.S.as the two countries hold talks in Washington this week, but it's prepared for any outcome and will defend its own interests.

He added that China-U.S. economic and trade ties are mutually beneficial in nature, thus the two sides need to view their trade issues in a comprehensive and objective manner, and properly deal with related problems based on mutual respect, equality and the win-win approach. Separately, the White House said US Trade Representative Robert Lighthizer, Commerce Secretary Wilbur Ross, and top economic adviser Larry Kudlow, among others, would participate. The administration has been adamant that they need to see "concrete" actions from the Chinese if they hope to avoid potential new US tariffs on Chinese imports that would address China's unfair trade practices and stealing of intellectual property.

The author of a controversial book and film, "Death by China", he has been a key architect of Republican President Donald Trump's tougher stance on China trade and has advocated punitive tariffs on Chinese goods. -China Business Council, said it is unclear whether major progress would be made. But the the Chinese have countered with a proposal to buy $150 billion in USA products instead, though the talks are still very much in flux, the official said. But the Treasury secretary was just following protocol in meeting one-on-one with his Chinese counterpart as the head of the delegation, according to a senior administration official.

"He recognizes there are problems in this trade relationship", Brady said of Liu after the meeting. Additionally, lawmakers took the Chinese to task for alleged transfers of U.S. intellectual property to Chinese firms.

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Senator Orrin Hatch, Republican chairman of the Senate Finance Committee, said after a meeting with Liu that he doubted the Chinese would agree to steps that would warrant backing off the tariff threat.

Meanwhile, Mr Trump earlier on Wednesday denied caving in to China over United States sanctions on the telecoms equipment maker ZTE.

But Trump's tweet on Wednesday seemed to indicate there would be relief for ZTE only if China and the United States reach a larger trade deal.

Liu met Wednesday with a bipartisan group of lawmakers on Capitol Hill to talk about reducing the tariffs and ways to strengthen the US-China trade relationship.

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The lawmakers said the meeting did not address Trump's pledge on Sunday to help Chinese telecommunications equipment maker ZTE Corp (000063.SZ) get back in business after a Commerce Department ban cut off its supply of US components.

Uncertainty over relations between the US and China has roiled financial markets and raised concerns among businesses anxious about a trade war.

Trump said in tweets on Wednesday that "nothing has happened" with China's ZTE Corp and that Beijing has "much to give" Washington on trade, denying suggestions that his administration was "folding" in negotiations with Beijing.

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