Trump, Xi upbeat on ending trade war

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China is having a hard time due to strong steps taken by the US against it over trade

In a phone call with U.S. President Donald Trump, Xi also said China would continue to play a constructive role in the process.

The news comes as the volatile trade relations weigh in on the USA stock market, with stocks taking a turn after a rally in world equity markets came to a close and gains reversed on Wall Street.

Team Trump on Friday threw cold water on reports that the administration was close to cutting a trade deal with China. "We're not on the cusp of a deal". "We have the capability and the wisdom to overcome barriers and push China-U.S. relations back to a normal track - this isn't just beneficial for both countries, but also the world".

"I think we'll make a deal with China, and I think it will be a very fair deal for everybody", Trump said ahead of the meeting with China in Argentina in a month's time.

Chinese president Xi Jinping and his U.S. counterpart Donald Trump agreed that trade dispute "should be handled properly through substantial consultation".

Trump said he will discuss trade with Xi when the two meet for dinner on the sidelines of the G20 leaders' summit at the end of November in Buenos Aires, Argentina.

The veteran financial guru and former Ronald Reagan adviser told CNBC in an interview he was not as optimistic as he once was about the two nations reaching a deal.

Stocks surged in Hong Kong and China on the report of constructive talks between Trump and Xi, while the offshore yuan jumped as much as 0.5 percent for the biggest two-day gain since August.

The Communist Party's Politburo, China's top policymaking body headed by President Xi Jinping, said on Wednesday it would stimulate market dynamic and facilitate the long-term healthy development of capital markets, as the economy is under growing downward pressure. "We have already put out asks to China with respect to trade".

China should attach great importance to the current situation and be more proactive in taking measures to cope with the issues, China's official news agency reported, citing a meeting of the Politburo, chaired by President Xi Jinping.

Trump revealed Thursday that he had spoken with Xi on several subjects, but focused on trade. The Trump administration this year has already imposed tariffs on $250 billion in trade with China and is threatening to impose tariffs on all remaining imports from China, which last year were worth $505 billion.

Trump said the two countries have a chance to make a fair deal.

Washington and Beijing are in an increasingly high-stakes standoff over Trump's aggressive move to end what he says have been years of unfair trade practices by China, including rampant intellectual property theft, forced technology transfers and market access barriers.

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