A Bloomberg News report suggests that the United States and China have quietly restarted talks to avoid a full-blown trade war between the two largest economies in the world.
Bloomberg News reports that representatives of Treasury Secretary Steven Mnuchin and Chinese Vice Premier Liu He are speaking privately and looking for ways for the two countries to return to the negotiating table, citing sources familiar with the conversations with the high level talks.
Last week, Mnuchin told CNBC that "quiet conversations" were on-going between China and the U.S. but no timetable, issues to be discussed and format for future talks have been finalized. Sources tell Bloomberg that the two parties have agreed that more discussion needs to take place.
The two sides have held three rounds of formal talks since Mnuchin took a team to Beijing in May to discuss trade between the U.S. and China. Negotiations between the two countries broke down after the Trump administration imposed tariffs on at least $34 billion dollars worth of Chinese imports earlier this month.
Wall Street was up more than 130 points on in the hours following the report on Tuesday, with yields on Treasury bills also edging higher.
So far, the U.S. Department of Treasury has refused to confirm, or comment on any possible talks between the U.S. and China.
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