"I spoke with President Xi (Jinping) yesterday".
U.S. President Donald Trump has not "set in stone" any decisions on escalating tariffs on Chinese goods and may withdraw some duties if there are promising policy discussions with China, White House economic adviser Larry Kudlow said on Wednesday.
"It is now clear what adjustments we should make and what we should adhere to", Lu said. "I am very cautious regarding the outcome of their meeting".
Trump said he and Xi also had 'a good discussion on North Korea'. "But China very much wants to make a deal", he said.
"They are maybe too complex to be solved in just one meeting", he said.
Mr Xi held the meeting amid signs that China is losing steam as it faces a trade war with the U.S., a massive debt buildup and a weakening currency.
Communist leaders promised for the first time in 2013 to give market forces the "decisive role" in allocating resources, but reform advocates say they have focused on building up state industry while doing little for entrepreneurs.
The major financial headline on Friday is that Trump has asked the cabinet to draft a possible trade deal with China - something that if occurred, would be welcome news for financial markets across the globe.
This whole list is very important to the administration, Kudlow said.
Trump also voiced his support for the China International Import Expo (CIIE) to be held from November 5-10 in Shanghai, which is the first of its kind in China.
Xi told Chinese state media on Thursday that he was willing to meet Trump at the summit and hoped to promote a steady relationship.
"He either plans to shove it down Xi Jinping's throat or is simply claiming a deal is forthcoming as a midterm election political stunt".
Markets have soared on reports that the two sides are closing in on a deal that would avoid Washington piling on still more tariffs against Chinese imports.
"There's no massive movement to deal with China", he said. "The result is that the trust deficit widens".
The possibility of progress helped stocks rally overnight.
Trump administration officials have said US-China trade talks can not resume until Beijing outlines specific actions it would take to meet US demands for sweeping changes to policies on technology transfers, industrial subsidies and market access.
The US this year has already imposed tariffs on $250 billion in trade with China.
Bloomberg reported on Monday that the Trump administration was preparing to announce tariffs on the remaining Chinese imports, about $257 billion worth, if the meeting fails to ease the U.S. I think we have a long way to go.