We open with a look at the high-level trade talks that just concluded this afternoon in Beijing. China and the U.S. reached agreement on several issues during their two days of negotiations. Among other things, the two countries agreed to set up a working mechanism to maintain close communications as they continue to wade through their differences.

The official state media Xinhua news agency reported that the two sides touched on such issues as expanding American exports to China, bilateral service trade and investment, IP right protection and tariffs and non-tariff barriers. Xinhua reported that the negotiators reached consensus on some of the issues.

Xinhua said the two sides realized they still have huge divergence in some areas, but will continue to try and make more progress.

The two sides agreed to set up a work mechanism to keep close communications.

Both two sides also agreed that stable and healthy economic ties are important and they need to resolve their differences through dialogue and consultation.

The Chinese Ministry of Commerce said that China has expressed strong concern over US sanctions on telecom giant ZTE and that the American delegates said they would pass the message to President Donald Trump.

Chinese Foreign Ministry spokesperson Hua Chunying on Friday noted the open letter from more than one thousand American economists to Trump. The letter sent Thursday opposes US protectionism.

HUA CHUNYING, SPOKESPERSON CHINESE FOREIGN MINISTRY "The American economists' joint letter make a pointed remark on the essence and damage of the US tariffs. That's another manifestation of unilateralism and protectionism that is the same as building a self-isolated wall. That doesn't accord with market principles and international rules. The actions will hurt others and cause self-inflicted wounds in the end. "

Chinese Vice Premier Liu He and US Treasury Secretary Steven Mnuchin led the two days of discussions.