This is the first time officials from both countries meet face-to-face since U.S. President, Donald Trump, and China’s President, Xi Jinping, agreed on a 90-day trade war truce in December. Lu Kang, China’s Foreign Ministry Spokesperson, said China has “good faith” and that both sides had agreed on a “positive and constructive” dialogue prior to the meetings. The U.S. delegation is led by Deputy U.S. Trade Representative, Jeffrey Gerrish, and includes under-secretaries from the U.S. Departments of Agriculture, Commerce, Energy and Treasury, as well as senior officials from the White House.

Reportedly, recent data has shown that manufacturing has slowed in both China and the U.S.. Some of the U.S. demands are said to require structural reforms considered unpleasant for Chinese leaders.

On January 3, the U.S. State Department increased its travel warning about China, urging Americans to “exercise increased caution” in the country “due to arbitrary enforcement of local laws as well as special restrictions on dual U.S.-Chinese nationals.” Allegedly, it noted that Chinese authorities have “exit bans” to prevent U.S. citizens from leaving China, who are compelled to participate in Chinese government investigations.

Sources: Reuters/CNBC