All signs are pointing to some small progress on the trade front.
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China would be open to making a partial deal with the U.S., Bloomberg reports, citing an official with direct knowledge of the talks. In exchange for the U.S. not imposing more tariffs on Chinese goods, Beijing would agree to non-core concessions, like increasing its purchases of agricultural products, the report said.
In a separate report, The Financial Times said China is offering to purchase 50 percent more U.S. agricultural products, raising its total to $30 billion annually.
High-level U.S.-China trade talks are set to resume Thursday in Washington. Chinese Vice Premier Liu He will lead the Chinese delegation while U.S. Trade Representative Robert Lightheizer and Treasury Secretary Steven Mnuchin will spearhead the U.S. team. It was reported on Tuesday that Liu does not have the special envoy designation that would allow him to make a deal with a stamp of approval from Chinese President Xi Jinping.
Wednesday's reports come as the U.S. has increased the pressure on China.
On Tuesday, the U.S. State Department imposed visa restrictions on Chinese officials for human rights repression in Xinjiang. This followed a move Monday when the U.S. added 28 names to its blacklist, including a government entity. Inclusion on the list, which designates entities believed to act in ways contrary to U.S. foreign policy or national security interests, restricts access to American goods.
"I think the most likely outcome, not this week, but you know sometime this fall will be some type of interim agreement that allows them to say at least that they made some progress," Center for Strategic and International Studies Scholl Chair and Senior Adviser Bill Reinsch told FOX Business on Tuesday.
"The Chinese buy more of our agricultural products, which would take some pressure off of Trump from our farmers. They do something on intellectual property, you know they promised Obama twice they wouldn't steal anymore. They can certainly promise Trump they won't steal anymore. Then in return, he delays the next round of tariffs which gives our consumers a break at the holiday season."