Trump has imposed penalty tariffs of up to 25 per cent on $250 billion USA of Chinese goods in a dispute over Beijing's plans for state-led development of technology industries.
Separately, the South China Morning Post - also citing unnamed sources - reported that Mr Trump had offered to host a dinner for the Chinese president after the G20 summit. At a campaign rally in Columbia, Missouri, on Thursday night he said, "they want to make a deal". 'Also had good discussion on North Korea!'
Trump administration officials have said that trade talks with China can not resume until Beijing comes up with specific actions it is willing take to meet United States demands for sweeping changes to policies on technology transfers, industrial subsidies and market access.
On Thursday, the USA accused a Chinese state-owned company of conspiring to steal trade secrets of U.S. chipmaker Micron Technology Inc.as part of a Justice Department crackdown against China in cases of suspected economic espionage.
Trump said he and Xi plan to meet during a gathering of the Group of 20 major economies this month in Argentina.
However, both Chinese and the USA observers have said there is bipartisan consensus in the USA for tough action on China to force it to change its trade practices and industrial policies. Trump administration officials have said that trade talks with China can not resume until Beijing comes up with specific actions it is willing take to meet USA demands for sweeping changes to policies on technology transfers, industrial subsidies and market access. Those discussions are moving along nicely with meetings being scheduled at the G-20 in Argentina.
Meanwhile, Chinese stocks have been under pressure this year amid trade conerns and slowing domestic economy.
"The economic teams of the two countries should strengthen contact, conduct consultations on issues of mutual concern, and push for a mutually acceptable solution to China-US economic and trade issues", Xi said.
'We're going way up, and China has been hurt over the last number of months.
Afterward, Trump described the conversation as "long and very good" and said in a tweet that their discussions on trade were "moving along nicely". But Kudlow cautioned that Trump would "aggressively" pursue his agenda against China, if no deals were reached on intellectual property theft, cybersecurity and tariffs on commodities, among other issues.
Tai Hui, chief market strategist (Asia Pacific) at JP Morgan Asset Management, told Reuters: "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".