WASHINGTON: The United States and China are resuming trade talks, raising hopes for a way out of an intensifying dispute between the world’s two largest economies.

White House economic adviser Larry Kudlow told reporters Thursday that the US team will be led by David Malpass, US Treasury under secretary for international affairs. Earlier, China said it would send a delegation led by a deputy commerce minister.

This meeting would be the first between senior US and Chinese officials since June 3 talks in Beijing ended with no settlement. The United States has already imposed taxes on $34 billion in Chinese goods, drawing Chinese retaliation. President Donald Trump is readying tariffs on $216bn more, and Beijing has vowed to counterpunch with its own trade sanctions.

“We haven’t really had a sit-down with them in quite some time at any level. So who knows? But it’s got to be a good thing,” said Kudlow, director of the National Economic Council.

Investors expressed relief at the prospect of a cease-fire in a trade standoff that has been escalating for months. The Dow Jones industrial average was up more than 365 points in late morning trading.

“It’s better to be talking than not talking, particularly in a dispute which shows no signs of let up and where mutual trust is so low,” said Wendy Cutler, a former US trade negotiator who is a vice president at the Asia Society Policy Institute.

Published in Dawn, August 17th, 2018