Amid trade war, China premier says Sino-US ties can improve

US and China optimistic on trade, plan talks at G20 summit

Kudlow said on CNBC that the meeting agenda between Trump and Chinese President Xi Jinping at the end of November in Buenos Aires has not yet been worked out, but "we may have a very good meeting in Argentina with President Xi". He gave no indication whether they made progress on settling the escalating tariff war over Beijing's technology policy. "We're not on the cusp of a deal".

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

"Frankly, the principal culprit is China", he said.

According to a report by state broadcaster CCTV, Li said China and the USA had benefited from cooperation, and that they should respect each other's core interests and concerns.

The Trump administration has imposed tariffs on $250 billion worth of Chinese goods, and Trump has suggested that tariffs could be coming for all other Chinese imports, worth as much as $267 billion, not now subject to duties.

Both Trump and Chinese President Xi Jinping are due to attend the G20 summit in Argentina which starts at the end of this month, and could hold talks there.

The Trump Administration officials have said US-China trade talks can not resume until Beijing outlines specific actions it would take to meet US demands for sweeping changes to policies on technology transfers, industrial subsidies and market access. After their last publicly reported phone call in May, Trump rekindled trade talks by easing sanctions on Chinese telecom equipment maker ZTE Corp., only for negotiations to break down days later. Xi said later to be willing to meet Trump.

"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", he added.

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"We've had a very good discussions with China, we're getting much closer to doing something", Trump said before departing the White House for a campaign event.

In a Fox News interview he said the USA is "not dependent on China economically".

Mr Xi also emphasised creating a fair and competitive environment and tasked local governments with "correcting" the behaviour of certain government departments, as well as large companies that use their dominance to "bully" smaller ones.

"There's no massive movement to deal with China", he said.

Earlier this week, Trump said he thought there would be "a great deal" with China on trade, but warned that he had billions of dollars worth of new tariffs ready to go if a deal did not materialise.

He has also threatened to impose tariffs on a further $267bn worth of Chinese goods.

"I'm not going to make a prediction I do think part of the uncertainty in stocks is about the election", Kudlow said.

In their May telephone conversation, Xi and Trump set out to resolve their trade disputes, but the talks ended in stalemate and the first tariffs followed just weeks later.

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