U.S. and China to relaunch talks with little changed since deal fell apart

The United States and China are set to relaunch trade talks this week after a two-month hiatus, but a year after their trade war began, there is little sign their differences have narrowed.

A U.S. official said last week the discussions were expected to resume with a phone call between U.S. Trade Representative Robert Lighthizer, Chinese Vice Premier Liu He and Treasury Secretary Steven Mnuchin.

After meeting with Chinese President Xi Jinping in Japan just in late June, U.S. President Donald Trump agreed to suspend a new round of tariffs on $300 billion worth of imported Chinese consumer goods while the two sides resumed negotiations.

Trump said then that China would restart large purchases of U.S. agricultural commodities, and the U.S. would ease some export restrictions on Huawei Technologies.

A second source said that U.S. tariffs on $250 billion worth of Chinese goods and Chinese tariffs on $160 billion worth of U.S. goods could wind up being "the new normal."

Sources familiar with the talks and China trade watchers in Washington say the summit did little to clear the path for top negotiators to resolve an impasse that caused trade deal talks to break down in early May.

The United States is demanding that China make sweeping policy changes to protect American intellectual property better, end the forced transfer and theft of trade secrets and curb massive state industrial subsidies.

At stake, U.S. officials say, is a dominance of the high-tech industries of the future, from artificial intelligence to aerospace.