>> China and United States wrapped up a second day of trade talks with mixed results and promises of more talk. Just hours after US Treasury Secretary Steven Mnuchin said it was going well.>>
> Chinese state media reported that other disagreements were actually quite big and the White House's threat of tariffs worth $50 billion on Chinese goods and China's threat of retaliation is looming heavy.
Ben Blanchard is at the Reuters Beijing Bureau.>> The US government in the next couple of weeks has to decide whether or not it is actually going to enforce these tariffs that they've said that they will enforce or could enforce. The Chinese, of course, from their point of view, will be regrouping, will be having their discussions with President Xi and about how they react.
>> Reuters' sources say that the Trump administration demanded the trade imbalance to be cut by China by $200 billion in the next few years. That's double what the president has previously demanded. China meanwhile is said to have offered to take more American imports and lower their own tariffs in exchange that Washington relax its national security stance on Chinese investors, and cancel an intellectual property probe.
>> And they've been saying we will not be bullied by the Americans. We will stand up for our rights. If the Americans want to have a trade war, fine, bring it on. We're confident in our system, we're confident in our ability to deal with the consequences of a trade war, and we're not gonna give in.
>> There's little word on what to expect next. One indicator to watch is how China's state run media react in editorials for the next few days.