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China’s Top Negotiator ‘Cautiously Optimistic’ About Reaching Trade DealBy Bloomberg

(Bloomberg) -- China’s chief negotiator said Wednesday night that he was “cautiously optimistic” about reaching a phase one trade deal with the U.S., even as talks continue to stretch out and tensions over Hong Kong and other issues rise.

Liu He made the comments in a speech in Beijing, according to people who attended the dinner and asked not to be identified. He also explained China’s plans for reforming state enterprises, opening up the financial sector, and enforcing intellectual property rights -- issues which are at the core of U.S. demands for change in China’s economic system.

Separately to the speech, he told one of the attendees that he was “confused” about the U.S. demands, but was confident the first phase of an agreement could be completed nevertheless.

Since President Donald Trump announced the phase one deal a month ago, markets have been whipsawed by comments from both sides, first indicating progress, and then the opposite. Just on Wednesday, Trump said China wasn’t “stepping up to the level that I want.”

U.S.-China Trade Deal Inches Ahead, Shadowed by Failure Risk

If efforts to reach a phase one deal fail before Dec. 15, Trump has threatened to impose 15% tariffs on some $160 billion in imports from China.

Liu was speaking at a dinner before the New Economy Forum. The Forum is being organized by Bloomberg Media Group, a division of Bloomberg LP, the parent company of Bloomberg News.

To contact the reporter on this story: Shawn Donnan in Beijing at sdonnan@bloomberg.net

To contact the editors responsible for this story: Malcolm Scott at mscott23@bloomberg.net, James Mayger

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