Earlier Friday, the Chinese foreign ministry said Trump and Xi had an "extremely positive" phone conversation Thursday.
The ministry said Friday the two leaders agreed to "strengthen economic exchanges" but gave no indication whether they made any progress on settling an escalating tariff war over Beijing's technology policy. "We are not on the cusp of a deal", Kudlow said.
The president's comments reflect the party's commitment to improved conditions for entrepreneurs is "vitally important", said economist Lu Zhengwei of Industrial Bank. Washington, Europe and other trading partners say those violate China's market-opening obligations and some American officials worry they might erode USA industrial leadership.
"Frankly, the principal culprit is China", he said.
Trump sounded very optimistic about reaching a trade deal with China, or else, he warned, he was ready to impose a trade tariff of 25 per cent on another Dollars 267 billion worth of Chinese products.
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.
China has repeatedly questioned the US's sincerity in trade talks, wary of agreeing to something only to have Trump change his mind.
United States campaigns in high gear three days before congressional elections
Trump has unapologetically continued the rhetoric during the run-up to the midterm elections , and his party has followed suit. Congress, now dominated by Republicans, and 36 governors' offices will be at stake when Americans vote on Tuesday.
His comments came a day after US Secretary of State Mike Pompeo said China should "behave like a normal nation on commerce and with respect to the rules of worldwide law".
Trump said during the conversation that he looks forward to meeting Xi during the G20 summit so that they can have an in-depth discussion about some major issues.
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.
"He wants to do it", Trump said of Xi.
"There is a long way to go" on negotiations, the USA official said, according to the tweet.
"There's no massive movement to deal with China", he said. The maintenance came after months of increasing trade strains, with the United States introducing import tariffs on Chinese goods and the Asian country repeatedly with equal measures.
The list would apply to imports from China that aren't already covered by previous rounds of tariffs, which may be $257 billion using last year's import figures, Bloomberg reported, citing people familiar with the matter. "I think only they can break the logjam".