On Tuesday, Trump said teams from the United States and China would begin preparations for the two leaders' meeting during the G20 summit in Osaka. China, which had previously declined to say whether the two leaders would meet, confirmed the meeting.
"We had a very good phone conversation with Chinese President Xi and we will have an extended meeting next week during the G20 in Japan," Trump said on Twitter.
The world's two largest economies are in the midst of a costly trade dispute that has put pressure on financial markets and harmed the global economy.
Negotiations to reach an expanded agreement were suspended last month after US officials accused China of abandoning pre-agreed commitments. Since then, interactions between the two countries have been limited, and Trump has repeatedly threatened to impose higher tariffs on Chinese products.
During a speech on Tuesday night, Trump officially launched his 2020 re-election campaign. and said it was taking "historic action to counter China's chronic trade abuses".
"It should have been done a long time ago, but the days of taking away American jobs, American ideas and wealth are over" Trump told a rally in Orlando, Florida.
"The key is to address the concerns of others," Xi said, according to Chinese state media. "We also hope that the United States is fair to Chinese companies. I agree that the economic and trade teams of the two countries will keep in touch on how to resolve the differences."
Washington has already imposed 25% higher tariffs on 250 billion $ worth of Chinese goods, ranging from semiconductors to furniture imported into the United States.
Trump is threatening to impose 325 billion $ in tariffs on goods, covering almost all Chinese imports to the United States, including consumer products such as cell phones, computers and clothing.
Despite trade escalations, Trump praised his relationship with Xi
Trump makes no secret of the fact that despite his threat to escalate the dispute, he wants to meet with Xi while they are both in Japan. Confirmation of the meeting by China avoids the possibility of disregarding Washington, which could lead to a new increase in tariffs.
Trump praised his relationship with Xi and spoke optimistically about making a deal.
"I think we have a chance. I know China wants to make a deal. They don't like tariffs and a lot of companies are leaving China to avoid them" he told White House reporters.
"I think the meeting can go well and honestly our people are starting to deal with it tomorrow. So we'll see. China would like to make a deal. We want to make a deal, but this deal must be profitable for everyone."
In his Twitter account, Trump is offering fresh fuel for a Wall Street rally, while investors are betting that resuming talks could dispel the trade war. The price of the S&P 500 rose nearly 1%, while the Nasdaq and Dow Jones Industrial Average rose about 1.4%. They have all closed at their highest levels since early May, when Trump hit global stock markets by raising tariffs on Chinese imported goods worth 200 billion $.
New negotiations
White House economic adviser Larry Kudlow declined to give details on how the two countries would prepare for the meeting and said the United States would continue to urge China to change its intellectual property theft practices.
According to former trade adviser of President Donald Trump, Clith William, the United States will withdraw from lengthy talks with China on a deal but that will not happen at the G20 summit later this month.