The trade dispute between the top two economies of the world began last month with Trump imposing tariffs on steel and aluminium imports into the US.
Those included slashing the USA trade deficit with China by $200 billion, cutting tariffs and eliminating subsidies for advanced technology, according to people familiar with the demands. "The backdrop of the ongoing trade negotiations between China and the United States is one in which global growth has already peaked and China's export performance is waning as a result".
Tariff threats have roiled USA and other stock markets in recent weeks amid fears a trade war between the world's two largest economies will impact global markets.
CHINA TRADE: China's exports expanded by 21.5 percent from a year earlier in April, bouncing back from a contraction the previous month.More news: Giuliani: Trump Still Against Pleading the Fifth
United States President Donald Trump on Wednesday (local time) said the bilateral trade talks with China must bring a beneficial outcome for the U.S. businesses.
Trump also stated his commitment to a trade relationship with China that is "balanced and benefits American businesses and workers".
Xi, meanwhile, said that "The teams of both sides can maintain communication and strive to find a solution to the problems that exist, so as to achieve mutually beneficial and win-win results", according to a report in Chinese state media.
Mnuchin's team also asked China to cut its U.S. trade surplus by at least US$200 billion by the end of 2020 and not resort to retaliatory measures against Washington.More news: US Attorney General Jeff Sessions in San Diego
In April, the trade surplus with the USA swelled to $22.2 billion, up from $15.4 in March and the first increase since November, as exports to the US grew at a double digit pace.
Export growth was led by a 20.7 percent increase in shipments of high-tech products, led by mobile phone exports.
THE QUOTE: "Geopolitical risk has cooled a little bit and economic data, even if it isn't accelerating as fast as it was a month ago, is still accelerating", said Karyn Cavanaugh, senior markets strategist at Voya Investment Management.More news: Cambridge Analytica ordered to release data on U.S. voter