Cabinet-level delegations from the U.S. and China will resume trade negotiations here Wednesday, but early indications are that the two sides remain sharply divided, suggesting a hard slog ahead for a deal to be cut before a March 1 deadline.
The Chinese delegation, dozens strong and led by Vice Premier Liu He, plans to offer a big increase in purchases of U.S. farm products and energy, along with modest reforms in industrial policies, said people in China who are closely following the talks.
But Beijing will fight U.S. demands for deep structural changes in the Chinese economy, these people said. Those demands have included eliminating subsidies to favored industries, as well as regulatory help and other aid to Chinese companies, especially state-owned enterprises.