Wall Street was set for a fourth week of gains, with foreign trade-sensitive industrials .SPLRCI up 1.9 percent and leading sector gains for the S&P 500. The officials asked not to be named as the discussions aren't public.
Second, even though there is an additional 10 percent tariff on products imported into the United States from China, for the most part US importers have cut their profit margins, or the Chinese suppliers have cut their sales costs to accommodate the American buyers.
A continuing threat of tariffs hanging over commerce between the world's 2 largest economies would mean a deal would not end the risk of investing in businesses or assets that have been impacted by the trade dispute.
USA stocks have seen a move higher on the back of the headline and in doing so, the S&P index is now above its 50 day MA at 2626.58.
The S&P 500 index gained 5 points, or 0.2 percent, to 2,621.
An investor looks at a screen showing stock information at a brokerage house in Shanghai, China February 9, 2018.
Presidents Trump and Xi agreed to a 90-day truce in the trade dispute in December to give their teams time to negotiate a deal.
Stocks were boosted by a Bloomberg report that said China sought to raise its annual goods imports from the United States by more than $US1 trillion in order to reduce its trade surplus to zero by 2024.
"We are prepared to put our vehicles tariffs on the negotiating table ... if the USA agree to work together toward zero tariffs on industrial goods", Malmstrom said during a news conference.
Particularly with regard to our trade with China, which accounts for the biggest portion of our trade deficit, Trump doesn't buy the orthodox rationale.
Volume on USA exchanges was 7.19 billion shares, compared to the 8.58 billion average over the last 20 trading days.
U.S. -Chinese relations are increasingly strained over technology, trade and cyber-spying.
Vice Premier Liu He will visit Washington on January 30-31 for the negotiations, the ministry said, following up on talks between lower-level officials in Beijing earlier this month. The U.S. will be looking for commitments on removal of import barriers, progress on the legal framework and an end to forced IP transfer. -China negotiations at Davos, Chinese Vice President Wang Qishan is due to attend the gathering.
Will the U.S. lift tariffs against China? -China Business Council, a trade group representing American companies doing business in China.
USA industrial production rose 0.3 per cent in December after a revised 0.4-per cent gain in November, in line with analysts' estimates, according to data released by the Federal Reserve.
And while news that the United States was carrying out a criminal probe into Chinese tech giant Huawei caused a wobble yesterday, the rally resumed after the Wall Street Journal story on tariff-lifting broke.