Trade negotiations between U.S. and Chinese officials, which take place today and tomorrow in Beijing in the hope of reaching a deal during a 90-day truce between President Trump and his Xi Jinping, already suffered a major setback when the US unexpectedly carried out its latest 'Freedom of Navigation' operation in the South China Sea, in the process infuriating Beijing with its implicit message that contest naval territories remain US domain.

And while the latest naval incident will practically assured that this week's mid-level talks won't produce a major breakthrough, the stakes are high as both sides face a resumption of tariffs in March if they don't strike a deal. More senior-level discussions are expected later this month, with the South China Morning Post reporting that Trump may hold talks with Chinese Vice President Wang Qishan at the World Economic Forum in Davos, Switzerland, while the Nikkei reported that Trump and Xi Jinping are reportedly mulling a potential summit in H1 2019 if progress is made in Beijing's trade talks.

So with much at stake, here, according to Bloomberg, are the seven main issue that will be critical for any tangible progress.

1. Intellectual Property

The U.S. accusation that China forces American companies to share sensitive technology and steals intellectual property is one of the thorniest issues, and could make or break any potential deal. The 90-day negotiations will focus on "structural changes" in the way China handles technology transfers, intellectual-property protection, cyber-theft and other issues, the U.S. said after Trump and Xi met in Argentina. China has announced an array of punishments that could restrict companies' access to borrowing and state-funding support over intellectual-property theft, and is drafting a law to prevent forced technology transfer. But as Bloomberg notes, "the devil will be in the details and execution."