Photo: GT

 
China appeared to indicate for the first time that a partial trade agreement with the US may be within reach, as it affirmed on Saturday that technical consultations on part of the text have been broadly completed. 

Analysts believe the phase one agreement, if signed, may take care of both sides' core interests and pave way for further negotiations but cautioned that the US may go back on its word. 

Chinese Vice Premier Liu He discussed key trade issues with US trade representative Robert Lighthizer and Treasury Secretary Steven Mnuchin in a phone call on Friday. 

The two sides agreed to properly handle their core concerns and affirmed that technical consultations on part of the agreement text have been broadly completed, a statement on the Chinese Ministry of Commerce's website said on Saturday.

This is the first time for the Chinese side to signal that a partial agreement may be within reach. 

In a separate statement, the US trade representative's office said "the two sides are close to finalizing some sections of the agreement," CNBC reported. 

Huo Jianguo, vice-chairman of the China Society for World Trade Organization Studies, said the phase one agreement is expected to pave a smooth way for the next rounds of negotiations. 

He said the phase one agreement should take care of both sides' core interests.

The Trump administration is in more urgency for a partial deal, Huo told the Global Times on Saturday. "The US economy faces downward pressure, and Trump needs domestic support for his 2020 presidential election," he added.

"It's a good sign that the US has shown sincerity in trade talks, but given previous experience, it's possible the US may go back on its word," Li Yong, deputy chair of the expert committee of China Association of International Trade, told the Global Times.

The trade conflict is a complicated long-term issue that can't be solved by one agreement, Huo said. "Since the beginning of the talk, China has been fully prepared for any possible outcome."

The latest telephone conversation between the Chinese and the US side also echoed a plausible consensus on issues including the US import of Chinese poultry and China lifting a ban on poultry imports from the US.