China appeals to U.S. to accept its technology progress

Hopes riding high on U.S.-China trade talks but reality paints a dimmer outlook

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President Trump, preparing to meet a Chinese trade delegation Thursday, said trade talks with China are going well but the U.S. won't reach any final agreement until he sits down again with President Xi Jinping.

"That doesn't mean you're going to have a deal but there's a tremendous relationship and a warm feeling".

Brilliant, who made the remarks during a briefing call with reporters, has been in contact with members of Trump's trade team, who are in their second and final day of high-stakes discussions in Washington with a Chinese delegation headed by Liu.

But compelling China to reform its trade policies and treatment of foreign companies will be hard.

"A comprehensive deal that fundamentally changes their system - I don't think that's possible", said Christopher Adams, a former US trade official specializing in China and now a senior adviser at the law firm Covington.

USA and Chinese negotiators are holding high-level talks aimed at settling a six-month trade war that has weakened both sides, shaken financial markets and clouded the outlook for the global economy. Earlier, Trump said on Twitter he was looking for China to open its markets.

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Xi told Trump in a letter that he hopes both sides will be able to meet each other halfway to reach a trade agreement before a March 1 deadline. According to CNBC, that meeting could take place in late February, which would provide little margin for error ahead of the March 1 deadline.

While China has offered increased purchases of United States farm, energy and other goods to try to resolve the trade disputes, negotiators dug into thornier issues, including U.S. demands that China take steps to protect American intellectual property and end policies that Washington says force USA companies to turn over technology to Chinese companies.

Trump also raised the possibility of a face-to-face meeting with Xi Jinping after receiving an official invitation from the Chinese leader.

Two days of high-level talks aimed at settling a six-month trade war between U.S. and China start amid deep differences over USA demands for structural economic reforms from Beijing.

Lighthizer led the two days of negotiations in Washington with Liu, the highest-level talks since Trump met Xi on December 1 and declared a 90-day trade truce.

"The danger here is that other countries will conclude Trump is a paper tiger", said Edward Alden, senior fellow at the Council on Foreign Relations.

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President Donald Trump has said he favors a healthy Chinese economy, but not at the expense of American business and know-how.

President Trump added that while China has agreed to some opening in its markets, he expects more for a trade deal to be done.

Chinese officials have said their policies do not coerce technology transfers.

Among several other headline criticisms, the U.S. is pushing for structural reforms to China's trade framework and the role of the state sector, which many experts believe will be a step too far for Beijing.

In a sign that Beijing is serious about addressing USA complaints, Chinese lawmakers this week completed a second review of a new law that is aimed at protecting the IP of foreign investors and banning forced technology transfers.

But American negotiators are looking for more structural changes in the trade relationship, including an end to China's intellectual property theft and the forced transfer of USA technology.

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