The trade war is already hurting USA companies in China

The trade war is already hurting USA companies in China

"I think most of us think it's better to talk than not to talk, and I think the Chinese government is willing to talk", Kudlow said.

The damage from the trade war to U.S. businesses in China includes lost profits, higher manufacturing costs and lower demand for their products, according to the survey of more than 430 companies in industries ranging from technology to health care.

The possibility of new talks comes as China is wary of the "very painful" impact of additional United States tariffs given its economic slowdown, with its gross domestic product at the lower end of its growth range for the past three years.

The possible resumption of negotiations sent Asian markets rallying with Hong Kong surging 2.5 per cent - having fallen for six straight days and into a bear market - and Shanghai more than one per cent higher. Treasury Secretary Steven Mnuchin has extended an invitation to talks to his counterparts in Beijing.

Trump imposed his first phase of tariffs this summer on $50 billion of Chinese goods, including high-end technology parts and manufactured goods, while Beijing fired back dollar-for-dollar at U.S. soybeans, autos and other farm goods.

The escalating trade spat between Washington and Beijing has generated turbulence in global markets.

But he cautioned: "I guarantee nothing".

Asked if the Trump administration would like to have additional trade talks with China, Kudlow said: "If they come to the table in a serious way to generate some positive results, yes of course".

In recent meetings with cabinet-level Chinese officials, USCBC representatives were told that licensing won't resume "until the trajectory of the U.S".

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The Trump administration's $200 billion tariff list would hit a broad array of internet technology products and consumer goods from handbags to vacuum cleaners and bicycles to furniture.

He also made it clear he was ready to impose tariffs worth $200 billion on goods "very soon" if President Xin Jinping's government refused to back down.

"There seem to be domestic political pressures that are working against the perception of US companies receiving benefits" during trade disputes, Parker told the South China Morning Post.

Later on Thursday, China's foreign ministry welcomed the offer of talks and said the two countries were discussing details.

On Thursday, the USA business lobbies AmCham China and AmCham Shanghai published a joint survey showing that the negative impact on US companies in China of tit-for-tat tariffs Washington and Beijing have imposed on one another was "clear and far reaching".

Two-thirds of American companies that responded to a survey said they have suffered lost sales or lower profits due to that increase, two chambers of commerce reported Thursday.

US business groups are escalating their fight against Trump's tariffs, with over 60 industry groups launching a coalition to put political pressure on the Trump administration to seek alternatives to tariffs.

More than 60 per cent of USA companies polled said the US tariffs were already affecting their business operations, while a similar percentage said tariffs by China on USA goods were having an effect on business.

"China must hold the expectation that it is probably not the time when both sides can reach an agreement".

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