President’s warning to China takes Beijing by surprise.

The trade battles with China hit US goods exporters in 2018. Services exports increased, but at a slower pace than in previous years. Despite these challenges, China continued to be important to US economic growth, supporting more than 1.1 million jobs.

A possible deal would roll back a portion of the $250 billion in U.S. tariffs on Chinese goods.

Lagarde said she expects the U.S. and China to reach a deal to end their trade dispute, which has unnerved financial markets and cast a shadow over the global economy.

“I’m positive that they will come up with something that works, but it will not be a trade deal that solves all problems for all people and moves China into the modern world.”

Treasury Secretary Steven Mnuchin said on Sunday that trade talks between the United States and China were entering a critical point as an American delegation h

Trump's remarks fuel anticipation that the two countries may be close to a trade deal.

A former engineer and a Chinese businessman have been charged with economic espionage and conspiring to steal trade secrets from General Electric Co to benefit China, according to an indictment unsealed by the U.S. Justice Department on Tuesday.

Lighthizer, Mnuchin set to return to Beijing on Tuesday with both sides aiming for draft deal after subsequent talks in Washington.

Under Trump the US has abandoned its former strategy of engagement with China, instead adopting a hardline stance. But his “trade war” has not borne fruit, while a recent thaw in negotiations shows the possibilities for renewed Sino-US cooperation.