However, Mr. Liu is conservatively optimistic that the two countries will agree on a deal, but there are some 'issues of principle' on which China is not willing to back down.

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On the other hand, US Treasury Secretary Steven Mnuchin, said that there were no further talks with China 'as of now.' Namely, on May 10 the US imposed tariffs on $200 billion worth of Chinese goods.

This development comes after claims that the two countries were making progress in their trade talks. However, Trump believes that China is now trying to re-negotiate.

As Reuters reports, there are three main differences between the two countries.

The first one regards tariffs, as China believes that tariffs are the cause of the trade dispute, and that if both countries were willing to reach a deal, then all tariffs must be eliminated.

The second is related to procurement, on which an agreement was reached between the two countries in Argentina at the end of 2018. However, now China and the US disagree on the volumes.

The third one has to do with how balanced the text of the draft agreement should be.