The two sides have been at loggerheads over USA demands that China improve protections of American intellectual property, end cyber theft and the forced transfer of technology to Chinese firms, curb industrial subsidies and increase US companies' access to largely closed Chinese markets. The two sides are deadlocked primarily over the Trump administration's assertions that China steals technology and pressures foreign companies to hand over trade secrets as part of a sharp-elbowed drive to become the global leader in robotics, self-driving cars and other advanced technology.
The U.S. and China are now in the midst of high-level trade negotiations in Washington.
President Donald Trump sounded upbeat ahead of a meeting he planned to hold later Friday with China's top trade negotiator, offering renewed hope that the world's two biggest economies will deescalate a conflict that has weighed on the world economy.
In another tweet, he said that "one of the great things about the China Deal is the fact that, for various reasons, we do not have to go through the very long and politically complex Congressional Approval Process".
Stocks are closing sharply higher Friday as the US and China reached a partial deal on trade and said they would continue negotiating.
Trump said on Friday evening the deal calls for China to increase its imports of USA farms goods to $40-50 billion a year - more than double the level of 2017.
Phase 2 of deal to include some IP aspects.
United States chief negotiator Trade Representative Robert Lighthizer said a dispute settlement mechanism was being finalised.
However, stocks fell off their session highs later in the session after US Trade Representative Robert Lighthizer stated a decision had not yet been reached regarding additional US tariffs scheduled for December. On Sept. 1, Washington hit Beijing with a 15% levy on $112 billion worth of goods, the first portion of the fourth tranche of tariffs set to be implemented by the U.S.
Total US agriculture exports were US$140 billion in 2018, so that increase would mean a third going to China.
However, he doubts that this will lead to a more comprehensive deal in the future, which will require Beijing to deliver broad structural reforms demanded by Washington.
"China wants it badly, and we want it also", the president said. "This is because his brand of protectionism would like to see the U.S. restored to its previous manufacturing glory, which is near impossible due to the higher costs of doing business in the United States as well as more stringent labour and environmental protections", he said. Some traders remained skeptical that buying soybeans from the USA represented a significant breakthrough in the overall trade talks, Bloomberg reported Friday.
Still, Gregory Daco, an economist at Oxford Economics, suggested that the partial nature of the deal won't relieve much of the uncertainty surrounding trade policy that has discouraged many American companies from investing in new equipment and expanding. China has hit back by targeting about $120bn in USA goods, focusing on farm products.