U.S. President Donald Trump and Chinese President Xi Jinping agreed to de-escalate trade tensions, with Washington calling for a 90-day hold on additional tariffs and Beijing promising to buy a U.S products to reduce the trade imbalance.
The two sides also agreed to try and conclude a trade agreement within 90 days, according to the White House.
Beijing pledged to buy significantly more agricultural, energy and industrial products, and will expand purchases of farm products immediately.
Trump and Xi also agreed to immediate talks on structural reforms regarding forced technology transfer, intellectual property protection and other contentious issues. If there is no progress, the U.S. will boost tariffs on $200 billion worth of goods to 25% from the current 10%.
The leaders, who met on Saturday during the Group of 20 summit in Buenos Aires, pledged to promote cooperation between for the two countries.
The U.S. has imposed additional tariffs on $250 billion worth of Chinese goods over what it deems unfair trade practices. Of this, a 10% duty on $200 billion would have jumped to 25% after the holiday shopping season ends on Jan. 1.
The president has also said that tariffs targeting a further $267 billion of Chinese goods could be imposed, in effect covering all Chinese exports to the U.S.
Chinese President Xi Jinping also told U.S. President Donald Trump that he is "open to approving" the plan of U.S. chipmaker Qualcomm Inc. to take over Dutch counterpart NXP Semiconductors N.V., a deal Chinese authorities did not grant regulatory approval to earlier this year.
The takeover, announced in October 2016, was approved by other regions such as the European Union, but China remained the only holdout through the deal's deadline in July this year.
Qualcomm has already terminated the deal and paid a termination fee to NXP. China's effective rejection came after Trump imposed a ban on Chinese telecommunications equipment maker ZTE Corp.'s purchase of parts from U.S. firms and started imposing additional tariffs on Chinese goods.
Qualcomm said there was no prospect for the acquisition to be revived.
“While we were grateful to learn of President Trump and President Xi’s comments about Qualcomm’s previously proposed acquisition of NXP, the deadline for that transaction has expired, which terminated the contemplated deal,” a Qualcomm representative said.
“Qualcomm considers the matter closed.”