Chinese President Xi Jinping and US President Donald Trump on Saturday agreed to resume trade talks, following a high-stakes meeting on the sidelines of the G20 summit in the western Japanese city of Osaka.

US President Donald Trump said his meeting with Xi was “excellent” and that “we’re right back on track,” adding that the US was “going to work with China where we left off.”

Washington has agreed not to slap new tariffs on Chinese exports “for at least the time being,” while China will buy more US agricultural products, Trump confirmed at a news conference, corroborating earlier reports from China.

The planned levies on an additional $300 billion worth of Chinese goods would have effectively extended tariffs to everything China exports to the America.

Many leaders had been eagerly watching to see if the pair could strike an agreement to ease tensions and end a trade war between their countries.

‘Mutual respect’ needed

In a foreign ministry statement following the lengthy talks, Xi told Trump he hoped the US could treat Chinese companies fairly, the statement added.

“China is sincere about continuing negotiations with the United States … but negotiations should be equal and show mutual respect,” the foreign ministry quoted Xi as saying.

The US president has already heaped taxes on $200 billion (€176 billion) of Chinese imports and has threatened to extend tariffs to almost all remaining Chinese goods shipped to the United States. Beijing has retaliated by slapping its own tariffs on imports from the US.

Trump and Xi to discuss Huawei

The dispute has already disrupted global supply chains and markets. Talks between US and Chinese officials over the tit-for-tat measures collapsed last month after 11 rounds of negotiations.

The trade dispute between China and the US includes a feud over China’s Huawei Technologies Co, with China fearing it could
threaten the company’s global growth.

The US has encouraged its allies to shun Huawei in their 5G, networks on security grounds, and has also suggested it could be a factor in a trade deal.

The Trump administration has declared Chinese telecoms giant Huawei a security threat, effectively banning US companies from doing business with it.

Trump said on Saturday that he had discussed Huawei with Xi and that resolving that issue would come later. US companies would still be able to sell components to Huawei.