Chinese envoy says trade talks with US have not broken down

China's leading envoy to trade talks in Washington says the failure to strike a deal in the tariffs war with the US was "just a small setback" and negotiations will continue despite increases in import duties on American imports from China.

In comments to reporters before he left Washington for Beijing on Friday, Vice Premier Liu He said he was cautiously optimistic but that a deal would require the Trump administration to agree to end the punitive tariffs it has imposed on billions of dollars' worth of Chinese goods.

In comments carried by China's state-run CCTV, Liu said the remaining differences are crucial ones having to do with principles, "and we will make no concessions on matters of principle."
Liu said it was "China's opinion that the tariffs are the starting point of the trade friction and must be totally lifted if a deal is reached."