US president, Donald Trump, has said he is optimistic a deal can be done with China.
This comes amid increasing tensions between the two countries, over Trump's decision to raise the tariff on Chinese goods to 125%.
Speaking to reporters at the White House, Trump praised President Xi Jinping as “a smart guy” and hinted he was ready for direct talks.
“Xi is a smart guy and we'll end up making a very good deal,” he said.
“Xi is a man who knows exactly what has to be done, he loves his country.
“We will get a phone call at some point and then it's off to the races.”
Trump, however, claimed that China was not taking advantage of America.
“I think investing in the United States of America will be the greatest investment,” he added.
Beijing had earlier hit back by raising tariffs on American goods to 84%.
