Last month, the Organisation for Economic Cooperation and Development, which advises numerous world's richest economies, warned that the global economy had passed its peak and faced a slowdown driven partly by trade disputes.
If the move is indeed true, it would be a positive one as the automotive industry has suffered the consequences of the growing U.S.
US President Donald Trump has threatened to impose stiff tariffs on cars assembled in the European Union as part of his "America First" trade policy.
Chinese state media reported Sunday that the two countries had reached "consensus on economic and trade issues" and that "healthy and stable economic and trade relations conform to common interests of the two countries and the whole world".
Additionally, in what the White House termed a "humanitarian gesture" in aid of the USA battle against opioid addiction, President Xi agreed to designate Fentanyl as a controlled substance, subjecting those exporting the drug to the U.S.to the "maximum penalty" under Chinese law.
One Chinese official told Reuters officials were "waiting for the leaders to return" before publicizing details.
The reality is far more unsettling, especially for China. Kinahan said the fact that USA earnings season has been so strong isn't necessarily an indication that the trade war isn't taking a toll. Kudlow told reporters at the White House that he believes the president expects China will reduce its auto tariffs to zero.
The White House says the deal with Xi will see China buy large amounts of USA agricultural produce to close the trade deficit and includes an agreement by Beijing to curtail the flow of fentanyl, a powerful opioid, into the US.
But he urged caution going into the new year and pointed out that holding back on higher tariffs isn't the same as lifting the ones already in place. "Level the field!" Trump said.
"If it is, we will get it done", Mr Trump said in a Twitter post. "President Xi and I want this deal to happen, and it probably will". In particular, China is firmly convinced in reaching a trade agreement with the United States within 90 days. In subsequent remarks, President Trump stated that China "will be getting rid of tariffs", possibly referencing removal of some of China's retaliatory tariffs to enable increased purchases of USA products. China has placed a 10 percent tariff on U.S. -LNG imports with the threat of increasing that figure in the future, resulting in China having to find alternate sources of the super-cooled fuel on the spot market.
The long-running dispute between the world's two largest economies has rattled investors for months, stoking traders' fears that it could begin dragging down corporate profits and weighing on global economic growth.
"It doesn't seem like anything was actually agreed to at the dinner and White House officials are contorting themselves into pretzels to reconcile Trump's tweets (which seem if not completely fabricated then grossly exaggerated) with reality", traders from JP Morgan wrote in their desk commentary Tuesday.
In addition, Treasury Secretary Steven Mnuchin said Tuesday on the Fox Business Network that China agreed to buy $1.2 trillion of USA products. Trump said on Tuesday that Lighthizer would work closely with Mnuchin, Kudlow and trade adviser Peter Navarro.