>> US-China trade talks are up against a, quote, hard deadline, of March 1st if the two sides cannot reach a deal on everything from intellectual property to agriculture.>> At the end of 90 days, these tariffs will be raised on $200 billion from 10% to 25% if we don't get a satisfactory solution.
>> Those words from the US trade representative on Sunday a stark contrast from the sunny tone set by President Donald Trump after he met with Chinese President Xi Jinping at the G20 summit on December 1st.>> I think that at some point we are going to end up doing something which will be great for China and great for the United States.
>> Trump then optimistically claiming China would drop duties on US cars, and that it promised to purchase more American grain. But in days since, White House officials walked back those boasts and reality settled in. The two sides had reached a truce, hitting pause on new tariffs, but tough negotiations remained ahead.
Stock markets sank on the sobering realization. The S&P fell more than 2% Friday, dropping for a third day in a row. Amid the stock turmoil last week came another blow to investors' outlook. Canadian police acting on a US warrant arrested a top executive from Chinese tech firm Huawei.
Meng Wanzhou, Huawei's global chief financial officer, was arrested in Canada on December 1st and faces extradition to the United States, which alleges that she covered up her company's links to a firm that tried to sell equipment to Iran despite US sanctions. The executive is also the daughter of the founder of Huawei.
>> Neither Canada nor the United States has provided China any evidence that Meng has broken any law in those two countries.>> China told the Canadian ambassador on Saturday that there would be severe consequences if it did not immediately release Meng. On Sunday, China's foreign ministry called the US ambassador to lodge a strong protest and said the US should withdraw its arrest warrant.
He added, China will respond further depending on US actions.