U.S. President Donald Trump and Chinese President Xi Jinping, who spoke by telephone on Thursday, expressed optimism about resolving their trade dispute ahead of a high-stakes meeting at the end of November in Argentina.
He added that trade talks were "moving along nicely" and meetings were "being scheduled" at the G20 summit in Buenos Aires at the end of the month.
The two countries already have imposed tariffs on hundreds of billions of dollars of each other's goods and Trump has threatened to slap tariffs on the remainder of China's $US500 billion-plus ($A690b) exports to the United States if the disputes can not be resolved.
Beijing and Washington have been involved in a trade spat since April 2018, when the U.S. started imposing steep tariffs on goods from China.
"I think we will make a deal with China and I think it will be a very fair deal for everybody", Trump said while speaking to reporters from the White House.
"Those discussions are moving along nicely", Trump wrote on Twitter Thursday.
Team Trump on Friday threw cold water on reports that the administration was close to cutting a trade deal with China.
Trump revealed Thursday that he had spoken with Xi on several subjects, but focused on trade.
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"He wants to do it", Trump said of Xi.
'We do hope that China and the United States will meet each other halfway and work together in the spirit of mutual respect and equality, ' Li told Trump's fellow Republicans.
Chinese tech stocks traded in the USA are surging across the board. Trump has threatened to impose tariffs on another US$267b in Chinese imports - a move that would cover virtually everything China ships to the United States.
Xi told Chinese state media on Thursday that he was willing to meet Trump at the summit and hoped to promote a steady relationship.
"Frankly, the principal culprit is China", he said.
News signaling improvements in US-China ties, in turn buoying the markets, would provide the president a chance to vie for support in midterm elections Tuesday that will decide whether the Republicans keep control of Congress.
"While we are still cautious over a full resolution of recent tensions in the medium term, resumption of dialogue between Washington and Beijing would be good enough to investors for now".
The news agency said it was not clear if Trump was easing up on demands that China has resisted, and it cited one person as saying intellectual property theft was a sticking point on a possible deal. In response, Beijing said it would impose taxes on 5,207 USA imports worth about $60 billion. "As the president said, we would like to talk to them about it, but they may not be ready".