President Trump says that China wants to make a trade deal with the U.S.
The United States has targeted US$250 billion ($375.5b) in Chinese products, and Beijing has lashed back by slapping tariffs on US$110 million worth of U.S. goods.
Trump, in a tweet after their discussion, said he planned for the two leaders to meet at the G20 summit in Argentina later this month.
"I think we will make a deal with China", he told journalists at the White House.
The trade dispute has also forced the yuan to fall in value but on Friday it was stronger for the first time this week, also helped by Xi's pledge on Thursday of more support for private firms. "I think we'll make a deal with China, and I think it will be a very fair deal for everybody, but it will be a good deal for the United States". "President Xi Jinping also stressed that China-U.S. trade has always been serving as ballast and a stabilizer for China-US relations".
The moves also follow media reports that pointed to progress on the US-China trade dispute.
"We're optimistic this is a potential off-ramp of increasingly antagonistic trade tensions and hope it leads to a pause and new negotiations", he said.
Titans were too late on WR Demaryius Thomas
The New England Patriots were in the market for a receiver at the trade deadline, according to NFL Media and Fox Sports. If it's the Broncos, I would love it. "I gotta deal with it".
"Frankly, the principal culprit is China", he said.
In May, after his last phone call with Xi, Trump agreed to ease up on sanctions imposed on Chinese telecom equipment maker ZTE Corp., saying they would cost too many Chinese jobs. He said China wanted to make a deal, adding, "They are not doing well".
President Trump has made very clear to China that they must change their "unfair" trade practices including theft of US intellectual property.
Isaac Boltansky, a policy analyst at the research and trading firm Compass Point, told Business Insider that the complexity of the issues the USA and China are discussing - intellectual property rights, Chinese laws restricting how U.S. companies can operate in the country, and more - make a deal hard.
For example, it's unknown whether he is considering relenting on his administration's hard line against China's theft of US intellectual property, which one of the people said remains a key sticking point in any potential deal.
"Look, there's no massive movement to deal with trade", Kudlow said.
The possible thaw in relations comes after months of escalating tensions over trade that threatened to spill into other areas of disagreement, including China's military build-up in the South China Sea. Trump said trade talks were "moving along nicely" and that meetings were "being scheduled" at the G20 summit in Buenos Aires.