China said it would strive to make substantial progress to resolve the trade war with the United States when the countries' negotiators hold face-to-face talks in early October. Trump announced in August that he was ready to increase rates on existing tariffs from 25% to 30% on $250bn worth of Chinese goods in October, including tuna, tilapia and red swimming crab.
CNN reports that markets around the world began to rally after news that the two sides were resuming trade talks in the coming weeks.
"In advance of these discussions, deputy-level meetings will take place in mid-September to lay the groundwork for meaningful progress", USTR spokesman Jeff Emerson said in a statement.
The US and Chinese seafood industries have been getting clobbered by the trade war.
The new round of talks will be seen as a sign of optimism in a trade war that has weighed on the global economy and shaken diplomatic relations between the two global powers. Asian markets reacted positively to the news on Thursday.
On Thursday, the Dow added 1.4 per cent, the S&P 500 climbed 1.3 per cent and Nasdaq rose 1.75 per cent.
In their latest escalation, Washington imposed 15% tariffs on $112 billion of Chinese imports Sunday and is planning to hit another $160 billion December 15 - moves that would extend penalties to nearly everything the United States buys from China. That prompted China to lodge a complaint against the United States at the World Trade Organization (WTO).
Washington plans to increase the tariff rate to 30 percent from 25 percent on $250 billion worth of Chinese imports from October 1.
Should the talks in Washington fail to produce a positive outcome, however, more tariffs are on the way. The escalating tit-for-tat tariffs are taking a toll on China's economy, which the country's top trade negotiator Vice Premier Liu He said faces increasing downward pressure.
China announced early Thursday that Washington would host new senior-level talks in early October.
"Both sides agreed that they should work together and take practical actions to create good conditions for consultations", the ministry said.
With fears growing that the global economy's hurtling toward a recession, officials in Beijing and Washington both confirmed that the two sides will sit for high-level meetings early next month. It said the recent escalation of trade tension had violated the consensus reached by Xi and Trump in Argentina and Osaka, and that some U.S. politicians lacked the consciousness to abide by consensus.
The U.S. and China have raised tariffs on billions of dollars of each other's imports, disrupting trade in goods from soybeans to medical equipment and battering traders on both sides. Trump has warned that if he is re-elected, China will face a tougher USA negotiating stance.
Trump had lashed out at Beijing in past months, frustrated by its failure to follow through on purchases of US farm products that he said were agreed in his meeting with Chinese President Xi Jinping in June.