"We're working under the direction of President Trump and President Xi from the meeting in Osaka and we'll see where we get". Vice-President of the Chinese Academy of Macroeconomic Research, Bi Jiyao, said China's slower economic growth will not push the government to concede to US demands.
In response to Trump's change of heart following his agreement with Xi to hold off on tariff duties, Foreign Ministry spokesperson Geng Shuang said additional tax duties from the U.S. would create "new obstacles" in reaching the highly anticipated yet elusive China-U.S. trade deal.
It is unclear how the two sides will resolve the existing major issue that needs prompt attention: Beijing wants clear details on Trump's reprieve of his Huawei ban while Washington wants more agriculture purchases from China.
Trump administration officials feel emboldened by recent weak economic numbers coming out of China and have consistently claimed that their tariffs are hurting China but haven't had any impact on American consumers.
On Thursday, signs that the trade dispute between the world's two largest economies was starting to take a toll on corporate earnings further unnerved investors, sending stocks down.More news: Arsenal happy to wait in transfer market - Emery
He and Chinese President Xi Jinping had agreed last month to revive trade discussions after talks fell apart in May.
"There is a huge growing market in China of middle-income people and we want to be able to compete fairly", said Mnuchin.
Trump has threatened to impose tariffs on another $325 billion worth of goods from China.
Bi explained that slower data from the second quarter of this year should not be inclined primarily to the China-U.S. trade war.
"What they did was not appropriate", Mr Trump said on Tuesday."They are supposed to be buying farm products".More news: Trump relished rally chant, Ocasio-Cortez tells constituents in Queens
US Trade Representative Robert Lighthizer and Mnuchin are due to talk over the phone with their Chinese counterparts this week. Earlier this month, Commerce Secretary Wilbur Ross said licenses would be issued where there is no threat to national security.
Meanwhile, the United States only wants to get into a good deal that will be a "great opportunity" for companies and workers in the United States.
Mnuchin denied a Wall Street Journal report last week that said the Treasury chief was urging USA suppliers to seek exemptions to sell to Huawei, saying he talks to corporate executives about many issues, including trade. "I've never encouraged companies one way or the other to do things".
Progress toward a US-China trade deal has stalled while the Trump administration determines how to address Beijing's demands to ease restrictions on Huawei Technologies Co., reported the Wall Street Journal.
Derek Scissors, a scholar at the American Enterprise Institute think tank who has advised the White House on technology issues, said he expected further relaxations on Huawei to be part of any U.S. Meanwhile, there's been no improvement in how the U.S. treats telecommunications giant Huawei Technologies Co., a key demand of China.More news: Alexa, How Was Prime Day?
With the conflict dragging on, reaching a comprehensive trade deal as Trump gears up for re-election next year increasingly seems like a remote possibility, according to people familiar with the matter, who spoke on the condition of anonymity.