Asian markets enjoyed another rally on Friday after Donald Trump hailed positive talks with Chinese President Xi Jinping and a report said he had asked officials to draw up a draft bill as he eyes a potential trade deal between the two.
The US president said talks were "moving along nicely" and that he planned to meet with Xi on the sidelines of the G20 summit at the end of November in Argentina.
Mr Xi said he was "very happy" to talk to Mr Trump again and that he puts "great importance [on] good relations with the president", according to Chinese state media.
"President Xi Jinping also stressed that China-US trade has always been serving as ballast and a stabilizer for China-US relations".
Chinese president Xi Jinping and his USA counterpart Donald Trump agreed that trade dispute "should be handled properly through substantial consultation". "If President Trump makes an agreement with President Xi, there is nobody above them to overturn it", he said.
President Donald Trump tweeted on Thursday that he had a "good conversation" with Chinese President Xi Jinping.
White House economic adviser Larry Kudlow said that Trump and Xi might be able to break the logjam on issues during the summit. The depreciation has already led to a pickup in capital outflows, with Chinese demand for foreign-exchange surging the most since 2016 in September.
Chinese state media said Trump also expressed support for a conference in Shanghai next week that Xi is using to promote the country as an import destination.
"I know they want to make a deal", Trump said.
Washington's demands included opening up China further to USA investments and abolishing the country's foreign-ownership caps.
Citing people familiar with the matter, the report said it was unclear if Trump was easing up on demands that have been resisted by Beijing, and cited one person who said intellectual property theft was a potential sticking point in a deal. He gave no indication whether they made progress on settling an escalating tariff war over Beijing's technology policy.
"We are changing them". In response, Beijing said it would impose taxes on 5,207 U.S. imports worth about $60 billion.
Attorney General Jeff Sessions, center, announces the creation of a new initiative to crack down on Chinese intelligence officials pilfering intellectual property from US corporations during a press conference in Washington, Nov. 1, 2018.
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.