21:57 GMT +314 October 2019
Listen Live
    A US 100-dollar banknote with a portrait of Benjamin Franklin and Chinese 100-yuan banknotes with portrait of late Chinese Chairman Mao Zedong are seen in the picture illustration in Beijing, China

    Beijing Lowering Expectations Ahead of This Week's China-US Trade Talks

    © REUTERS / Jason Lee
    Business
    Get short URL
    3162
    Subscribe

    Washington's decision to blacklist 28 Chinese companies just days before renewed trade talks between the two world powers has left Beijing with weak expectations of the negotiations.

    According to Reuters, government officials, diplomats and investors in Beijing have "lowered expectations for progress" from the upcoming trade talks with the US this weekend, after Washington "damaged" its "goodwill" by blacklisting more than two dozen Chinese firms.

    Earlier in the day, high expectations about the outcome of the trade talks pushed US stock indices upward, with Apple and other tech companies leading the charge in market gains. However, the news immediately sent markets downward again, just minutes before the closing bell at the New York Stock Exchange. The Dow Jones Industrial Average ended the day with a 181.97-point gain.

    US President Donald Trump reacted to the lowered expectations during an executive order signing, telling the media that Chinese officials "feel like I'm driving a tough bargain." 

    On Tuesday, the US Commerce Department added 28 Chinese security companies and agencies "determined by the US Government to be acting contrary to the foreign policy interests of the United States" to a trade blacklist. The entities are reportedly connected to repressive measures by Beijing in its eastern Xinjiang Province. The US State Department also added visa restrictions against Chinese officials over the issue.

    Companies on the Bureau of Industry and Security's (BIS) Entity List can only be traded with by US firms or agencies if they acquire specific licenses to do so, Sputnik reported. Earlier this year, 70 Chinese tech firms, including Huawei and ZTE, were added to the Entity List.

    Another set of US tariffs against Chinese imports looms on the horizon as well, casting a shadow over the trade talks. Last month, US President Donald Trump postponed the imposition of an additional $250 billion in trade penalties by two weeks, until October 15.

    Related:

    China's Hikvision, Megvii Technology Strongly Oppose US Blacklisting
    Chinese Embassy in US: Visa Restrictions 'Violate Basic Norms, Undermine China's Interests'
    China Blasts 'Sinister Intentions' of US Visa Restrictions on Xinjiang
    Tags:
    blacklisting, trade war, trade talks, China
    Community standardsDiscussion
    Comment via FacebookComment via Sputnik