President Donald Trump wants to reach an agreement on trade with Chinese President Xi Jinping at the Group of 20 nations summit in Argentina later this month and has asked key US officials to begin drafting potential terms, according to four people familiar with the matter.
The report lit a fire under stock markets that have beset by fears of a full-blown trade war between the world's two biggest economies.
"Just had a long and very good conversation with President Xi Jinping of China". "We have already put out asks to China with respect to trade", said Kudlow, who served as the Trump campaign's senior economic adviser.
The US president spoke to Xi on Thursday and later tweeted that trade talks with China were "moving along nicely" ahead of face-to-face talks between the pair at the G20 summit in Argentina later this month.
Mr Trump has asked key USA officials to begin drafting potential terms, according to the report.
Chinese tech stocks traded in the U.S. are surging across the board. "They very much want to make a deal", Trump said. 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.
The two countries have been locked in an escalating trade war this year, with each side imposing tariffs on hundreds of billions of dollars' worth of imports from the other.
Despite the positive message from Beijing, analysts were more pragmatic about what could be achieved by the leaders' meeting given the two sides' huge differences on strategic and ideological issues, as well as the growing hostility towards China in the United States.
President Donald Trump tweeted on Thursday that he had a "good conversation" with Chinese President Xi Jinping. "They all want to do it".
Bloomberg's Enda Curran reports on "Bloomberg Daybreak: Asia". 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.
Given that tariffs are generally inflationary and bad for economic growth, investors have not been particularly pleased with the idea of a drawn-out trade war - or the possibility of more tariffs.
"There's no massive movement to deal with China", he said.
Trump also offered to host a "Western-style" dinner for Xi on December 1, after the G20 leaders' meeting, an invitation that Beijing had tentatively accepted, people familiar with the matter told the South China Morning Post.