Trump ratchets up rhetoric against Beijing as U.S.-China officials meet for Xi's Washington visit

The upcoming visit of Chinese President Xi Jinping to Washington is set against a backdrop of heightened tensions between the two nations. Despite this, both sides seem to be making efforts to engage in dialogue, with US and Chinese officials meeting in Beijing this week. The fact that these talks took place suggests that there is still a willingness on both sides to communicate, even if the rhetoric from the White House has been increasingly critical of China.

The Trump administration's tough talk on China is largely driven by concerns over trade imbalances and what the US perceives as unfair trade practices. The US has been pressing China to open up its markets further and to reduce its massive trade surplus with the US. With the US presidential election looming, it's likely that Trump will continue to take a hardline stance on China to appeal to his domestic base. However, it's also possible that the two nations may be able to find areas of common ground, such as on issues related to North Korea or counter-terrorism.

Looking ahead, the key thing to watch will be whether the US and China can make any meaningful progress on trade issues during Xi's visit to Washington. Any signs of a breakthrough on trade would likely be seen as a positive development for markets, while a failure to make headway could exacerbate tensions and weigh on investor sentiment. With trade tensions between the US and China showing no signs of easing, the stakes are high for both sides to find a way to work together.

Originally reported by cnbc.com. Trade-News adds analysis for finance & markets readers.