China sending envoy to US amid trade dispute

China sending envoy to US amid trade dispute

Chinese President Xi Jinping. AP/PTI file photo

China is sending an envoy to the United States for talks aimed at cooling a trade dispute that threatens to upend markets from soy beans to steel.

The Foreign Ministry said Vice Premier Liu He will visit the US from Tuesday to Saturday for consultations with US Treasury Secretary Steve Mnuchin and his team.

That follows a visit by the US officials to Beijing earlier this month, where they conveyed a demand that China slash its trade surplus with the U.S. by USD 200 billion by the end of 2020.

A rivalry over advanced technology has fueled demands by Washington that China give up policies that favour domestic companies. Beijing considers such policies fundamental to its state-driven economic model and vital for its future growth.