The U.S. and China are trying to restart talks aimed at averting a full-blown trade war between the world’s two largest economies, Bloomberg reported, citing two people familiar with the effort.

Representatives of U.S. Treasury Secretary Steven Mnuchin and Chinese Vice Premier Liu He are reportedly having private conversations as they look for ways to reengage in negotiations, according to sources who spoke on condition of anonymity.

They cautioned that a specific timetable, the issues to be discussed and the format for talks aren’t finalized, but added there was agreement among the principals that more talks need to take place.

Negotiations to resolve the dispute have been stalled for weeks, with both sides refusing to budge. High-level U.S. talks on the Trump administration’s trade posture toward China are taking place this week, according to a third person who also spoke on the condition of anonymity.

The next wave of U.S. tariffs is set to kick in as early as Wednesday, with the possible imposition of duties on another US$16 billion of Chinese imports. Officials in Beijing have vowed to respond with the same amount of tariffs on U.S. products.

Photo: SCMP