Treasury Secretary Steven Mnuchin (R) and Trade Representative Robert Lighthizer (L) greet Chinese Vice Premier Liu He as he arrives for trade talks at the Office of the U.S. Trade Representative in Washington, D.C., October 10, 2019.
A White House official said talks had gone very well, "probably better than expected".
'China came to Washington prepared to put some things on the table, ' said Robert Holleyman, a former deputy USA trade representative who is now a partner at the Crowell & Moring law firm. Lawmakers in recent months have grown increasingly wary of what they see as Trump's abuse of that authority and discussed ways to claw it back, citing the president's many unilateral tariff measures and a lack of transparency in negotiations. He will meet with Chinese Vice Premier Liu He in Washington later on Friday.
Mnuchin, arriving for the negotiations in Washington, told reporters the talks were "going well".
Wall Street rose for the third straight session on Friday, as investors expected top-level trade talks between the United States and China to result in a partial trade deal and delay planned USA tariff increases.
He stressed that "the Chinese side came with great sincerity". In his quest to force China to acquiesce to America's terms, Mr. Trump has already taxed $360 billion worth of Chinese products and was poised to tariff almost every laptop, dresser and toy that China sells to the United States before year-end.
But smaller deal could include new currency agreements, Chinese commitments on farm purchases and a halt on United States tariffs that are due to increase next week. -China trade talks would yield at least a partial deal, while a rise in Apple's shares lifted the technology sector.
Earlier Trump had tweeted there were "warmer feelings" in US-China trade talks.
China's purchases of U.S. soybeans jumped in September after stagnating during the summer.
He said the value of the US, since he was elected, has increased by trillions of dollars.
In return, Beijing would offer non-core concessions like purchases of agricultural products without giving in on major sticking points, the official said, without offering further details.
Still, the S&P 500 and Dow Jones indexes were set for their fourth straight weekly fall after taking a hit from the recently announced weak economic data and irritants in the U.S.
As part of the deal, China would agree to some agricultural concessions and the USA would provide some tariff relief.
This week, the U.S. Commerce Department blacklisted 28 Chinese entities including eight technology and surveillance firms, over their involvement in human rights abuses in China's northwestern region of Xinjiang.
But Trade Representative Robert Lighthizer said Trump had not made a decision about a new round of tariffs that are planned to go into effect in December.
Global stocks rose sharply Friday on optimism about U.S.
Friday's China Daily editorial also warned that "pessimism is still justified", noting that the talks would finish just three days before Washington is due to implement higher tariffs.
Still, there was no hiding the sharp deterioration in relations this week.
Mr. Trump, speaking from the Oval Office, said the two sides had reached a verbal "phase one" agreement that would take several weeks to write and could be signed by both sides in November.