Trump expects 'very good' trade deal with China

President Donald Trump speaks during a campaign rally in Estero Florida

Trump said in a tweet on November 1 that he had "a long and very good conversation" with Xi, offering some hope that trade tensions may cool after the G20 meeting.

Xi on Thursday said he looks forward to meeting with Trump at the G20 in Argentina, according to China's state media.

The direct talks were the first between the two leaders to have been reported since May.

China's Premier Li Keqiang, right, speaks next to Tennessee Senator Lamar Alexander during a meeting with a group of U.S. Republican senators and Congress members at Zhongnanhai leadership compound in Beijing, Thursday, Nov. 1, 2018.

Mr Trump has asked key USA officials to begin drafting potential terms, according to the report.

The two leaders agreed to "strengthen economic exchanges", said a ministry spokesman, Lu Kang.

The two countries have imposed tariffs on hundreds of billions of dollars of each other's goods and Trump has threatened to extend the tariffs to the remainder of China's $500 billion-plus exports to the United States if the disputes can not be resolved. "But it will be a good deal for the United States".

In recent months China has repeatedly questioned the U.S.'s sincerity in trade talks, wary of agreeing to something only to have Trump change his mind.

"Bilateral tensions over strategic issues such as Taiwan, the South China Sea and the arms race will continue and may be at risk of escalating", he said.

"I think we'll make a deal with China, and I think it will be a very fair deal for everybody", Trump said Friday at the White House before leaving for political rallies in West Virginia and Indiana.

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This whole list is very important to the administration, Kudlow said. "We talked about many subjects, with a heavy emphasis on Trade", he wrote.

"They are maybe too complex to be solved in just one meeting", he said.

Despite the promise offered by the Trump-Xi telephone call, the level of tension between the two nations was demonstrated just hours after it ended when the U.S. filed charges against Chinese technology firm Fujian Jinhua Integrated Circuit Co and its Taiwanese partner.

Trump administration officials have said U.S. These include outright cybertheft and forcing United States companies to hand over trade secrets as the price of admission to the Chinese market. "And let's see what happens", Trump said at a White House event.

"The issues driving the China-US trade tensions are complicated and contentious, which makes it incredibly hard to believe that substantive progress was made during this phone call", Boltansky said.

China and the United States are locked in an increasingly bitter trade war, and both countries have already placed tariffs on some of each other's imports.

Analysts said Trump could be simply trying to sooth investors and boost the stock market in the run up to the midterm elections by teasing a deal.

Both countries presidents have expressed optimism in resolving their issues.

"The Trump administration should not miscalculate China's tolerance for what they perceive as bullying tactics", he said.

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