Trump predicts he'll make trade deal with China

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US President Donald Trump and his Chinese counterpart Xi Jinping have expressed optimism about resolving a bitter trade dispute, following a phone conversation between the two leaders. "Those discussions are moving along nicely with meetings being scheduled at the G-20 in Argentina".

China's official Xinhua News Agency said that Xi accepted the call at Trump's invitation.

Earlier Friday, the Chinese foreign ministry said Trump and Xi had an "extremely positive" phone conversation Thursday.

The U.S. government has employed increasingly aggressive rhetoric toward China on a wide range of issues, such as trade and industrial espionage, and it's unlikely that both sides will agree to remove tariffs before the end of November.

Meanwhile in an interview, Secretary of State Mike Pompeo said China was the most important long-term strategic challenge for the US.

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He said the two countries "are competitors but not adversaries".

President Donald Trump's newfound zeal to resolve his trade war with China risks hitting some familiar obstacles, including himself.

In an interview on Fox News Channel's "The Ingraham Angle" show on Monday, Trump did not specifically mention the potential withdrawal of tariffs, but said he expects "a great deal" with China. "As the president said, we would like to talk to them about it, but they may not be ready".

"Frankly, the principal culprit is China", he said. "But China very much wants to make a deal", he said. They also agreed to meet on the sidelines of the Group of 20 summit meeting in Buenos Aires, Argentina, at the end of the month.

A Chinese state-owned company was charged on Thursday with stealing technology from U.S. chipmaker Micron Technology Inc., part of a Justice Department crackdown against China in cases of suspected economic espionage.

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The United States has already imposed tariffs on US$250 billion worth of Chinese goods, and China has responded with retaliatory duties on US$110 billion worth of USA goods.

The direct talks were the first between the two leaders to have been reported since May.

China's latest economic indicators suggest the trade war is having a bigger and quicker impact on the economy than expected.

He adds that any deal reached must be "fair".

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