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Trump set for 'productive' talks with Xi

Larry Kudlow says there are no preconditions in the meeting between the US and Chinese leaders. (AAP)

US economic adviser Larry Kudlow says that if the meeting between President Donald Trump and China's Xi Jinping go well, trade negotiations will resume.

US President Donald Trump has agreed to no preconditions for his high-stakes meeting with Chinese President Xi Jinping this weekend and is maintaining his threat to impose new tariffs on Chinese goods, White House economic adviser Larry Kudlow says.

Trump's decision on whether to impose new tariffs on a $US300 billion ($A429 billion) list of nearly all remaining Chinese imports will depend on the outcome of the Saturday meeting on the sidelines of a G20 summit in Osaka, Japan, Kudlow told Fox News Channel on Thursday.

"There are no preconditions," Kudlow said. "President Trump looks forward to the meeting. We believe it's quite possible if the meeting goes well that the Chinese will come back to the negotiating table and we might be able to pick up where we left off in May."

Trump is set to meet Xi for talks in Osaka at 11.30am (12.30pm AEST) on Saturday.

Kudlow dismissed as "fake news" reports suggesting China was insisting on lifting sanctions on Chinese telecom equipment giant Huawei Technologies as part of a trade deal and that the Trump administration had tentatively agreed to delay new tariffs on Chinese goods.

The Wall Street Journal reported that Xi planned to present Trump with terms for ending the trade dispute, including removing a ban on the sale of US technology to Huawei, citing Chinese officials with knowledge of the plan.

The South China Morning Post jointly reported that Washington and Beijing had agreed to a tentative truce in their trade dispute that would delay new US tariffs, citing sources.

Kudlow said Trump was comfortable with imposing additional tariffs on Chinese goods, but "if something good comes out of those talks or China were to offer us a good deal in the future then we might be willing to change some of our views".

He said Trump would continue to insist on structural changes to China's policies to protect American intellectual property and to end the forced transfer of technology to Chinese firms, two US demands at the core of the trade dispute.

"Enforcement has to be part of the story and we don't know how this is going to end," Kudlow said. "Folks ought to stop forecasting. Let's just see what happens at these talks."

In Beijing, China's commerce ministry said the US should immediately remove sanctions on Huawei, but did not link the demand directly with the Trump-Xi meeting.

China opposes US abuse of export controls and urges the US to return to a track of cooperation, said the spokesman, Gao Feng.

Trump has suggested previously that the Huawei sanctions, which ban the firm from buying US components and software on national security grounds, could be part of a trade deal with China.

Huawei has denied its products pose a security threat.

Gao noted that Xi told Trump during a phone call last week - a gesture that rekindled hopes of a deal - that he hoped the US could treat Chinese firms fairly.

The US Commerce Department announced last week it was adding several Chinese companies, and a government-owned institute involved in supercomputing with military applications, to its national security "entity list" that bars them from buying US parts and components without government approval.

China would consider putting foreign firms on a list designating them "unreliable" if they adopted discriminatory measures against Chinese entities, hurt its industries and threaten its national security, Gao said.

Details of the list would be released soon, he said.

China's foreign ministry spokesman Geng Shuang stressed that China would not be scared by US threats of more tariffs.

"The Chinese people are not afraid of pressure and never buy this kind of strategy," he told reporters.

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