The two countries have imposed tariffs on hundreds of billions of dollars of each other's goods and Trump has threatened to put tariffs on the remainder of China's US$500 billion-plus exports to the United States if the disputes can not be resolved.
The list would apply to imports from China that aren't already covered by previous rounds of tariffs, which may be $257 billion using last year's import figures, Bloomberg reported, citing people familiar with the matter.
Trump and Xi both expressed optimism about resolving their bitter trade disputes ahead of a high-stakes meeting planned for the two leaders at the end of November in Argentina.
U.S. President Donald Trump said he talked with Chinese President Xi Jinping on Thursday, especially about ongoing trade disputes between the world's two biggest economies. "If President Trump makes an agreement with President Xi, there is nobody above them to overturn it", he said.
Trump said he and Xi also had "a good discussion on North Korea".
Trump asked key cabinet secretaries to have their staff draw up a potential deal to signal a ceasefire in an escalating trade conflict, the people said, adding that multiple agencies are involved in the drafting of the plan.
Xi said Thursday after speaking with Trump that he hopes China and the United States will be able to promote a steady and healthy relationship, Chinese state media reported.
If you look at their economy, the Chinese economy is not doing well.
Afterward, Trump described the conversation as "long and very good" and said in a tweet that their discussions on trade were "moving along nicely".
However, both Chinese and the United States observers have said there is bipartisan consensus in the U.S. for tough action on China to force it to change its trade practices and industrial policies.
In recent months China has repeatedly questioned the US's sincerity in trade talks, wary of agreeing to something only to have Trump change his mind.
The United States has already imposed tariffs on $250 billion worth of Chinese goods, and China has responded with retaliatory duties on $110 billion worth of US goods. 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.
'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, ' Li told Trump's fellow Republicans. I think we have a long way to go.
The United States has imposed tariffs on US$250 billion worth of Chinese goods, with duties on US$200 billion of the total set to increase to 25 per cent from 10 per cent on Jan 1, 2019.