No preconditions in trade talks with China: White House's Kudlow

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Officials also want the United States to reverse a ban on the sale of USA technology to the Chinese telecommunications firm Huawei Technologies, which was announced last month in an executive order.

The report also said China wants the United States to lift all punitive tariffs and abandon efforts to get China to promise to buy even more USA goods than it previously agreed to do - a reiteration of long-standing demands.

Gao added that during a phone call to Trump last week, Xi expressed hope that the USA would fairly treat Chinese firms.

Trump said Chinese leaders "want to make a deal".

China and the United States have already imposed tariffs of up to 25% on hundreds of billions of dollars of each other's goods in a trade war that has lasted almost a year.

Chinese President Xi Jinping plans to head into his meeting with President Donald Trump in Japan on Saturday armed with a set of conditions the USA would have to meet in order to defuse trade tensions, according to The Wall Street Journal.

"European nations were set up to take advantage of the United States".

The U.S. 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 U.S. parts and components without government approval. That would give trade delegations the opportunity to reset negotiations, which stalled last month after Washington said Beijing reneged on prior commitments in a draft deal.

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"The U.S.'s threat to add tariffs can not scare us", Geng said.

"My Plan B with China is to take in billions and billions of dollars a month and we'll do less and less business with them", Mr Trump said on Wednesday (June 26) during an interview with Fox Business Network's Maria Bartiromo.

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

The United States has put Huawei on an export blacklist, citing national security issues, barring US suppliers from selling to the world's largest maker of telecoms equipment and its No.2 maker of smartphones, without special approval.

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

Referring to Trump's comments, a spokesperson from the Ministry told Chinese state-run newspaper Global Times: 'Chinese people do not believe in evil, are not afraid of pressure and have never bought tricks like this'.

Speaking to reporters at a lunch in NY, former Chinese diplomat Zhao Weiping disputed USA complaints about Chinese technology policy, suggesting the trade war was meant to hobble a rising competitor. Asked about companies relocating production from China to Vietnam, he said Vietnam treated the United States even worse than China.

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