President’s warning to China takes Beijing by surprise.

U.S. negotiators have tempered demands that China curb industrial subsidies as a condition for a trade deal after strong resistance from Beijing, according to two sources briefed on discussions, marking a retreat on a core U.S. objective for the trade talks.

Liu He is in Washington for the latest round of trade talks.

Trump’s national emergency declaration is an attempt to break what Francis Fukuyama calls a “vetocracy”: a degraded democracy where elites have lost all consensus. This clash exposes the rift between Republican believers in American nationalism and Democratic supporters of universal human rights — but it will do nothing to solve underlying issues brought by inequitable globalization.

Kudlow said the U.S. and China “expect to make more headway” in trade talks this week.

A Chinese woman who passed security checkpoints at President Donald Trump’s Mar-a-Lago resort in Florida carrying a thumb drive coded with “malicious” software was arrested on Saturday for entering a restricted property and making false statements to officials, according to a court filing.

Diplomatic mission coincides with resumption of trade talks in Washington.

Push to force Beijing to change what are widely viewed as China’s market-distorting trade and subsidy practices has gained support.

The U.S. expects to keep tariffs on Chinese goods in place for a “substantial period of time,” even after a deal.

It asked investigators to look into “public reports about alleged activities by Ms. Li ‘Cindy’ Yang and her apparent relationship with the president.”