Kudlow called the upcoming meeting between Trump and Chinese President Xi Jinping at the G20 summit "definite" and noted that the trade dispute between the countries will be on the meeting's agenda.
The world's two biggest economies are locked in a dispute over USA complaints that China is using predatory tactics in a drive to supplant American technological dominance.
The comments came days after Trump warned he would impose tariffs on all China's shipments to the U.S. before saying he thought he could "make a great deal with China" but it was not yet ready. "Those discussions are moving along nicely with meetings being scheduled at the G-20 in Argentina".
Despite the promise offered by the Trump-Xi telephone call, the level of tension between the two nations was demonstrated just hours after it ended when the United States filed charges against Chinese technology firm Fujian Jinhua Integrated Circuit Co and its Taiwanese partner. It "likely reflects the fact that businesses in the USA are starting to feel the impact of the trade conflict through higher prices and squeezed margins", she said.
"The Trump administration should not miscalculate China's tolerance for what they perceive as bullying tactics", he said.
Just after the upbeat readouts of the Trump-Xi call, the Justice Department announced the latest in a list of actions against what the Trump administration calls China's cheating through intellectual property theft, unfair corporate subsidies and rules hampering U.S. corporations in China. 'But we have a chance to make a fair deal, because China has been hurting us and trade deals have been hurting us. In response, Beijing said it would impose taxes on 5,207 USA imports worth about $60 billion. "Xi said both he and Trump have good visions for a healthy, stable development of the China-US relations as well as expanding economic and trade cooperation, and they should make efforts to realize the wishes", Xinhua said.
Iran's Top Oil Customers Resist US Calls For Zero Imports
India has held several rounds of conversations with the US, Iran and and other stakeholders on the issue. Refineries using Iranian oil have also faced insurance issues during renewals in recent months.
The US leader wants to maintain United Nations sanctions and pressure to compel Pyongyang to abandon its nuclear programme, even as he prepares for a second summit with North Korean leader Kim Jong Un.
"This is pre-election hype created to make the markets happy; there is no imminent deal with China", Greg Valliere, the chief global strategist at Horizon Investments, told Business Insider.
"There's no massive movement to deal with China", he said.
The Trump administration presented Chinese officials with a list of more than 140 demands during the first round of trade talks in May. "They all want to do it".
Xi responded to the call by saying he hopes China and the USA will be able to promote a steady and healthy relationship, Chinese state media reported Thursday.
Bloomberg News, citing unnamed sources, reported that the president has requested key cabinet secretaries put together an outline deal to call a ceasefire in the painful row. That will be led by the agency's National Security Division head, John Demers, and will increase the use of Justice Department tools to counter China's activities, the official said. He gave no indication whether they made progress on settling the escalating tariff war over Beijing's technology policy.