Trump proposes new summit with Xi to end trade war

US President Donald Trump proposed a new summit with Chinese President Xi Jinping to try and settle the trade war for good as both sides claim progress at the end of the latest talks in Washington.

Trump tweeted on Thursday that despite progress being made in the trade war negotiations, he would not finalise a deal until he meets with the Chinese leader.

“China’s top trade negotiators are in the US meeting with our representatives. Meetings are going well with good intent and spirit on both sides. China does not want an increase in tariffs and feels they will do much better if they make a deal. They are correct.

“I will be meeting with their top leaders and representatives today in the Oval Office. No final deal will be made until my friend President Xi, and I, meet in the near future to discuss and agree on some of the long standing and more difficult points.”

The meeting will take place after a summit between Trump and North Korean leader Kim Jong Un and just before the deadline for a US-China trade deal on 2 March, two sources told CNBC.

If no resolution is reached by March, tariffs on $200bn of Chinese goods are set to increase from 10% to 25%.

“I hope our two sides will continue to work with mutual respect and win-win cooperation,” Xi said, adding that an agreement would “send a positive signal to our two peoples and the broader international community”.

China offered to boost its purchases of US goods to reduce the bilateral trade deficit but is still reluctant to reduce state support for the economy and innovation and tech companies that would allow the US competitors and advantage.

The issue of technology is still tense, especially after China reacted badly to Monday’s indictment of Huawei, the Chinese tech giant, on criminal charges it stole US technology and violated US sanctions.