Trump, noting his "excellent relationship" with Xi, said "we want to do something that will even it up with respect to trade".
Other disagreements that caused talks to break down include how to enshrine the Chinese reforms demanded by the U.S., over intellectual property theft and industrial subsidies, and when and how to lift the tariffs that Trump has come to view as his most powerful economic tool.
The dispute has hurt American farmers and battered global markets.
Trump has agreed to halt new tariffs on around $350 billion in Chinese imports in exchange for China agreeing to increase its purchase of US agricultural products.
Trump told reporters he thought they would have a "very productive" meeting.
"We won't be adding an additional tremendous amount, 350 billion dollars left which could be taxed, tariffed we are not doing that, we will work with China on where we left off.China is going to be buying a tremendous amount of food and agricultural product and they will start that very soon, nearly immediately".
The move comes as the US and China resume trade talks. "And if we make a deal it would be a very historic event".
Trump then moved to allow Huawei Technologies Co.to buy products from US suppliers.
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Earlier this week, the WSJ reported China would make lifting of the Huawei sanctions an essential condition for any trade agreement with the U.S.
"We've said it before - communication and friction between China and the United States is a long-term, hard and complex thing".
On Friday, the European Union and the South American trade bloc Mercosur offered a ray of trade hope by sealing a blockbuster deal after 20 years of talks, with European Commission President Jean-Claude Juncker hailing it as a "strong message" in support of "rules-based trade".
"China and the United States both benefit from cooperation and lose in a confrontation", he told Mr Trump. The United States can impose or suspend tariffs at will, and there's very little China can do to fight back.
The dispute escalated when talks collapsed in May after Washington accused Beijing of reneging on reform pledges.
The U.S. will postpone a threat to put new tariffs on another $300 billion in Chinese goods, "for the time being", Trump said.
Back in late May, US President Donald Trump and his administration added Huawei to the US DOC Entity List, meaning that US companies were forbidden from doing meaningful business with Huawei. "The GCSB [Government Communications Security Bureau] here have said that their concerns are totally un-influenced by politics, it's purely about the security of the situation and about Huawei's role in any future network build. they'll have to potentially revisit some of that commentary in light of all of this", he said.