Chinese vice premier may not be coming to D.C. for trade talks

Chinese Vice Premier Liu He sitting at a March 20 news conference in Beijing.
Chinese Vice Premier Liu He may not attend trade talks in D.C. next week unless early negotiations go well. Photo by Lintao Zhang/Getty Images

Chinese Vice Premier Liu He is scheduled to come to D.C. next week to continue trade discussions, as announced by the White House on Monday. However, Liu's trip may be delayed now, depending on how preparatory negotiations pan out this weekend, the Financial Times reports.

Why it matters: China and the U.S. are hanging on a precipice of trade war, with Chinese President Xi Jinping himself reportedly instructing negotiators to press for the U.S. to lighten its punishment against ZTE. Meanwhile, the U.S., which has companies embedded in China that could be hard hit by a trade war, wants to reduce its huge trade deficit.