Though final decisions have not been made, US officials are preparing for such a scenario in case a planned Trump-Xi meeting yields no progress on the sidelines of a Group of 20 summit in Buenos Aires in November, according to the report.
"Given his [Trump's] poor track record on policy credibility in the past year, we'd better not hold out too much hope", Lu said.
Bloomberg reported on Friday that Trump wants to reach a trade agreement with China at the G20 meeting. Trump said after he talked to Xi over phone.
Trump imposed new tariffs on roughly half of the Chinese imports this summer while Beijing fired back with tariffs on most U.S. products. But Kudlow cautioned that Trump would "aggressively" pursue his agenda against China if no deals were reached on intellectual property theft, cybersecurity and tariffs on commodities, among other issues. "It looks like they are focusing on trade".
A Chinese state-owned company was charged on Thursday with stealing technology from USA chipmaker Micron Technology Inc., part of a Justice Department crackdown against China in cases of suspected economic espionage.
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Speaking to reporters at the White House before departing for a campaign event, Trump confirmed that he would meet with Chinese President Xi Jinping when they are in Argentina for a November 30-Dec. "We talked about many subjects, with a heavy emphasis on Trade".
"It is possible some good positive things could - I say could - come out of President Trump-President Xi talks".
After the conversation, Trump told reporters the United States will make with China what he described as a "very fair deal for everybody".
Meeting a group of Republican lawmakers in Beijing, China's Li noted the China-U.S. relationship's "ups and downs" over the past four decades of diplomatic ties.
"The sound and stable growth of China-U.S. relations serves the common interests and the fundamental interests of the people of our two countries", Li said.
Tennessee Senator Lamar Alexander told the official the US and China are competitors not adversaries and suggested they can prosper together.
Mr Alexander said he would be discussing trade with Mr Li, though neither of them mentioned the ongoing tariff war in remarks to reporters.