Trump Says US Does Not Want to Discuss Huawei With China

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The upbeat reports on Thursday came on the heels of data this week showing the manufacturing sector contracted for the first time in August as the trade war between the United States and China intensified.

Beijing also has retaliated by cancelling purchases of soybeans, the biggest single USA export to China.

China's complaint concerns additional 15% tariffs imposed by the US on the first batch of $300 billion worth of Chinese products on Sunday, the commerce ministry said (link in Chinese) in a statement Monday. "The chance for U.S. and China to strike any deal is getting increasingly smaller", economists with Nomura International (Hong Kong) Ltd. said in a note last Monday.

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. Just days after massive new tariffs went into effect on both sides of the US-China bilateral trade relationship, China announced it would send a team of negotiators to Washington next month. Chinese leaders will have a packed schedule next month, gearing up for National Day celebrations scheduled for October 1.

Officials have struggled to agree on when to hold talks and what to discuss since their last meeting in Shanghai in July.

China and U.S. teams agree to take actual actions to create good conditions for trade consultations.

Aiding the rally was positive USA economic data, including an estimate of private sector payrolls growth and an acceleration of US services sector activity.

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The 35% punitive tariff being charged by China is being added to the combined 27% in taxes (duty + value-added tax) the country had already been charging for years for imported United States squid to enter China, as one squid industry source explained. Worries over the UK's messy divorce from the European Union has also been fueling global uncertainties along with the trade conflict between Washington and Beijing.

In the meantime, both sides continued their tit-for-tat trade war this week.

Analysts noted that investors remain nervous and markets could react with volatility on comments or actions from either side.

On Tuesday, Trump had warned he would be tougher on Beijing in a second term if trade talks dragged on, compounding market fears that disputes between the United States and China could trigger a U.S. recession.

The U.S. has also pledged to further increase tariffs on another $250 billion worth of Chinese goods to 30% from 25% starting from October 1.

Last week, Trump claimed that China was asking about new talks, which media outlets refused to credit. While President Donald Trump's administration ratchets up the tariff pressure, China is having to add stimulus to support its slowing economy.