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China rushes to seal the trade agreement before Trump's deadline

On Wednesday, Reuters reported that both sides drafted the Memorandum of Understanding (MOU) on cyber theft, intellectual property rights, services, agriculture and non-tariff barriers, including subsidies. On Friday, Trump said he did not like MOUs because they are short-term and he wanted a long-term deal. An industry source informed of the talks said that both sides have reduced their differences in intellectual property, market access, and reduced a trade deficit of nearly $ 400 billion with China. But major differences persist in changes in China's treatment of state-owned companies, subsidies, compulsory transfers and cyber theft. There is also no agreement on the enforcement mechanism. The United States wants a strong mechanism to ensure that the Chinese reform commitments are followed, while Beijing insists on what it calls a "fair and objective" process. "Enforcement is a difficult puzzle," said the source, who requested anonymity to speak openly about the negotiations. "You need objective arbitrators to make decisions." It was not clear if Saturday's conversation managed to delete these differences. Neither side shared the details of today's discussions. Trump said the biggest decisions could be reached when he met Xi, probably in Florida next month, and that they could go out of business to include Chinese telecommunications companies Huawei Technologies and ZTE.

On Wednesday, Reuters reported that both sides drafted the Memorandum of Understanding (MOU) on cyber theft, intellectual property rights, services, agriculture and non-tariff barriers, including subsidies.

On Friday, Trump said he did not like MOUs because they are short-term and he wanted a long-term deal.

An industry source informed of the talks said that both sides have reduced their differences in intellectual property, market access, and reduced a trade deficit of nearly $ 400 billion with China. But major differences persist in changes in China’s treatment of state-owned companies, subsidies, compulsory transfers and cyber theft.

There is also no agreement on the enforcement mechanism. The United States wants a strong mechanism to ensure that the Chinese reform commitments are followed, while Beijing insists on what it calls a “fair and objective” process.

“Enforcement is a difficult puzzle,” said the source, who requested anonymity to speak openly about the negotiations. “You need objective arbitrators to make decisions.”

It was not clear if Saturday’s conversation managed to delete these differences. Neither side shared the details of today’s discussions. Trump said the biggest decisions could be reached when he met Xi, probably in Florida next month, and that they could go out of business to include Chinese telecommunications companies Huawei Technologies and ZTE.

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