Tensions have increased in recent months with USA officials accusing China of meddling in the U.S. midterm elections, conducting cyber espionage and military aggression. "We talked about many subjects, with a heavy emphasis on Trade", Mr Trump tweeted.
Stock markets in Europe and Asia rallied this morning after a phone call between President Trump and President Xi raised hopes of a thaw in trade tensions.
The comments came days after Trump warned he would impose tariffs on all China's shipments to the United States before saying he thought he could "make a great deal with China" but it was not yet ready. Suddenly, talks of 7.00 has nearly all but evaporated and the surge higher in the yuan here will continue to give added backing to gains seen in the aussie and the kiwi ahead of the U.S. jobs report later.
"Rebuilt China", Trump told Breitbart at the time.
The telephone conversation on Thursday was Trump and Xi's first publicly disclosed call in six months. He has also emphasized the need to reduce the USA trade deficit with China.
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Xi also said he and Trump expressed hopes to expand bilateral trade cooperation, Xi was quoted as saying on CCTV state television.
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.
Tu Xinquan, a trade expert at Beijing's University of International Business and Economics, said he was skeptical that the Trump administration was truly ready to deal, and that other factors, such as the mid-term congressional elections, could be driving statements from the administration. "President Xi Jinping also stressed that China-U.S. trade has always been serving as ballast and a stabilizer for China-US relations".
The markets were already buoyant after Beijing said it would introduce measures to kickstart the stuttering economy following a string of weak data, including growth at its slowest pace in nine years during the third quarter.
A Justice Department indictment targeted two companies based in China and Taiwan and three individuals, saying they conspired to steal trade secrets from US semiconductor company Micron Technology Inc. That will be led by the agency's National Security Division head, John Demers, and will increase the use of Justice Department tools to counter China's activities, the official said.
Lu Xiang, a specialist on U.S. affairs at the Chinese Academy of Social Sciences, said that Beijing had been preparing for a "worse than the worst" confrontation with the United States, and added that any further escalation would be fatal to an already highly volatile USA stock market.