Trump says had 'very good talk' with China's Xi

WASHINGTON

U.S. President Donald Trump on Friday said he had a "very good talk" with his Chinese counterpart Xi Jinping regarding the trade deal between the two nations.

"Had a very good talk with President Xi of China concerning our giant Trade Deal," said Trump on Twitter, adding that Beijing has started "large scale purchases" of U.S. agricultural products.

He also said a formal signing of the two countries’ "phase-one" trade deal is being arranged.

"Also talked about North Korea, where we are working with China, & Hong Kong (progress!)," Trump wrote.

The talk came a week after the world's two largest economies have agreed to a preliminary "phase one" trade agreement text that would significantly draw down mutual economic recriminations they have imposed on one another.

In announcing the breakthrough, Trump said he has decided to cancel a new round of tariffs that were set to be imposed on Sunday and reduce some already-imposed import duties in exchange for a series of concessions from China.

At issue for Washington is a lopsided trade imbalance with China -- the U.S. had a $378.6 billion trade deficit with China in 2018, according to the Office of the U.S. Trade Representative -- as well as concerns over intellectual property theft, including what the Trump administration says is Beijing's policy of forcing American firms to transfer intellectual know-how in order to do business in China.