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Report: US mulls currency deal with China ahead of next round of trade talks

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Report: US mulls currency deal with China ahead of next round of trade talks

The U.S. is considering reviving a currency agreement with China as part of an interim trade deal that could avert potential tariff increases next week, Bloomberg News reported, citing people familiar with the discussions.

The currency pact would be part of a partial deal that top-level negotiators could consider when they meet in Washington on Oct. 10. Other key U.S. concerns, such as forced technology transfer and intellectual property theft, would be discussed at a later time, the people reportedly said. If the scheduled discussions go well, Vice Premier Liu He may meet with President Donald Trump on Oct. 11, days before the U.S. is due to hike tariffs on $250 billion of Chinese goods on Oct. 15.

The yuan strengthened against the dollar, with the offshore and onshore currencies trading nearly 0.3% higher around 11:18 a.m. in Beijing.

Washington said both countries had previously discussed the currency pact in February before talks hit an impasse in May, according to the report. The U.S. Treasury Department officially designated China as a currency manipulator in August.

In the run-up to the trade negotiations, China was reportedly considering increasing its U.S. farm imports to $30 billion per year and making changes to non-tariff barriers as part of agriculture-related concessions in a bid to secure a partial deal.

The potential offer came after the U.S. added a slew of Chinese entities to a trade blacklist and imposed a visa ban on certain officials with ties to allegations of human rights abuses in China's Xinjiang province.