Xi calls on US, China to redouble trade deal efforts in letter to Trump

Mandel Ngan | AFP | Getty Images

President Donald Trump speaks during a meeting with Chinese Vice Premier Liu He in the Oval Office of the White House in Washington, DC, on February 22, 2019.

Chinese President Xi Jinping delivered an optimistic message to President Donald Trump in a letter Friday, calling on the U.S. and China to redouble their efforts to meet halfway on a trade deal that has been the subject of high-level bilateral meetings this week in Washington.

Trump was more tepid in his response to reporters, saying that the while the U.S.’ relationship with China has been good, “who knows” whether a final deal will be made.

The Oval Office meeting with Chinese Vice Premier Liu He followed reports that the U.S. and China are considering a late-March meeting between Trump and Xi at the president’s Mar-a-Lago golf resort in Florida.

Treasury Secretary Steve Mnuchin also announced Friday that Chinese negotiators would extend their visit to Washington by two days in order to build on the progress that has been made so far this week.

Mnuchin said that the March meeting, reported earlier by CNBC, may depend on the outcome of the next few days of negotiations.

“I think we’re making a lot of progress,” Trump said, adding that there was a “very good chance a deal could be made.”

Liu echoed Trump’s outlook, saying that a trade deal was “very likely” from China’s perspective.

U.S. Trade Representative Robert Lighthizer, who also attended the Oval Office meeting, said negotiations had moved forward, but noted that “a few very big hurdles” remained.

Trump also said he would be willing to extend the March 1 deadline previously set for the trade talks to conclude, “if I see substantial progress being made.” He added, “If we’re doing well, I could see extending that.”

While the two sides remain far from reconciling their disputes over forced technology transfers and what the U.S. alleges is China’s theft of its intellectual property, sources confirmed to CNBC on Friday that China has committed to buying $1.2 trillion in U.S. goods.

This is breaking news. Please check back for updates.