China and the U.S. agreed to enter meaningful trade talks at the end of last month, and President Trump has set a 90-day deadline for a new bilateral agreement to be reached. Investment markets are expected to be healthier at the start of trading today. Chinese stocks rose slightly after the announcement of the first conference call.

The latest talks between trade officials from the United States and China are now fully underway, with the first meeting held via a conference call on Monday.

Conference Call Attended by Top Diplomats

Present for the teleconference were Vice Premier Liu He from China, as well as U.S. Trade Representative Robert Lighthizer and U.S. Treasury Secretary Steven Mnuchin.

China was the first to release a statement regarding the call. The Chinese Ministry of Commerce produced a short press statement saying that “Both sides exchanged views on putting into effect the consensus reached by the two countries’ leaders at their meeting, and pushing forward the timetable and roadmap for the next stage of economic and trade consultations work.”

The statement referred directly to the previous meeting between President Donald Trump and Chinese President Xi Jinping. Both leaders reached important high-level yet informal agreements, and the negotiations will now determine the mechanics of making those agreements happen.

The U.S. wants China to provide more guarantees for intellectual property protections, while ceasing uncompetitive practices like heavy government subsidies for tech industries. China expects concessions too, having asked the U.S. to end its opposition to Chinese “market economy status” within the World Trade Organization.

No Mention of Recent Huawei CFO Arrest

The recent arrest of Huawei CFO, Meng Wanzhou, is expected to have a negative influence on trade discussions. China made statements during the weekend telling the U.S. and Canada that there would be “grave consequences” if Meng continues to be remanded in custody.

Some analysts believe that the U.S. will eventually use Meng as a bargaining chip on trade. However, few details about her extradition to the U.S. and the legal case against her have been revealed. At this point, analysts only have speculation to go from.

Trade Talks Confirms Willingness to Negotiate

The initial conference call is a positive step that should bring some confidence to world markets. It indicates that both China and the U.S. are willing to persevere with friendly negotiations, regardless of disruptive political sidelines like the Huawei arrest.