Trump Hails 'progress' In Sino-US Trade Talks

US President Donald Trump on Thursday hinted at progress in his high-stakes trade battle with China, saying talks with Beijing's envoy had gone well.

The remarks added to an atmosphere that had grown warmer during the day after Trump announced he would grant an audience at the White House to top trade envoy Vice-Premier Liu He.

"I will say I think it's going really well," Trump told reporters, offering no details. "We had a very, very good negotiation with China."

The new signs of comity were an abrupt improvement after a week in which Washington blitzed Beijing with aggressive policy measures and talks appeared headed for a dead end, just days before US duties on US$250 billion in Chinese imports are due to rise.

Wall Street closed higher, with investors buoyed by hopes that at least escalation might be averted even if an overarching resolution was beyond reach.

But pressure on the two sides to defuse the confrontation has mounted in recent weeks as signs have grown increasingly clear the trade war – now more than a year old – poses a mounting danger to the global economy.

China this year balked at Trump's demands for a profound transformation to the way it manages its economy and analysts say Beijing is unlikely to adopt economic reforms that could undermine the Communist Party's political power.

Speculation has instead focused on the possibility the two sides will seek to seal an incremental deal this week as a confidence-building measure. (AFP)