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U.S., China to Resume Trade Talks as Tariffs Bite

Oil tumbles on surprise build in U.S. crude inventories

News of the upcoming talks helped Chinese stocks stem losses.

The ministry reiterated in the statement that China is against unilateralism and trade protectionism, and won't accept any unilateral trade restrictions.

Vice Minister to meet with US Treasury UnderSecretary Malpass.

Beijing and Washington started the trade war in July this year each imposing 25 percent tariffs on $34 billion of each other's exports.

China's Commerce Ministry says Vice Minister Wang Shouwen will meet with David Malpass, an assistant U.S. Treasury secretary for global affairs.

"The lower rank of the delegation suggests that both sides remain far apart, and an agreement reached for this visit is very unlikely", Jonas Short, head of the Beijing office at investment bank Everbright Sun Hung Kai, wrote in a note.

Beijing has said it will retaliate in kind.

There was no immediate response from the US Treasury to the announcement from Beijing.

The talks, which will take place at a lower level than previously, are the first official attempt by the world's two largest economies to alleviate trade tensions that have been simmering since June.

Four U.S. and Chinese sources in the business community said they had low expectations for the talks, particularly if officials from USTR were not involved.

A Chinese trade delegation will visit the USA this month to kick off a new round of talks, the first since negotiations broke down two months ago. The invitation for talks may have been meant to steady markets, they said. China has issued retaliatory tariffs on USA exports that have appeared to be aimed at US industries that could have a political effect on the USA president. "China realises how serious the trade war with the USA is and does not want a more serious confrontation", he said.

Trump asked Kudlow in the Cabinet meeting how the USA economy was doing compared to China's economy.