The United States and China have agreed to resume trade talks, easing a long row that has contributed to a global economic slowdown.
US President, Donald Trump, and China’s President, Xi Jinping, reached an agreement at the G20 summit in Japan.
President Trump also said he would allow US companies to continue to sell to the Chinese tech giant Huawei, in a move seen as a significant concession.
The US President had threatened additional trade sanctions on China.
However, after the meeting on the sidelines of the main G20 summit in Osaka, he confirmed that the US would not be adding tariffs on $300 billion worth of Chinese imports.
He also said he would continue to negotiate with Beijing “for the time being”.
And at a subsequent press conference, the US president declared that US technology companies could again sell to China’s Huawei – effectively reversing a ban imposed last month by the US commerce department.
The ban prevented US tech firms from selling to Huawei, crippling the Chinese firm’s ability to get critical American technology to help it make its products.
The US and China – the world’s two largest economies – have been fighting a damaging trade war over the past year.
President Trump accused China of stealing intellectual property and forcing US firms to share trade secrets in order to do business in China.
China, in turn, said the US’s demands for business reform were unreasonable.
The feud escalated in the months leading up to the summit, after talks between the two countries collapsed in May.