It responded to USA tariffs with its own protectionist measures and continues its multibillion-dollar One Belt investment program, which is meant to secure additional stable trade routes to its most important suppliers and customers.
Commerce Secretary Wilbur Ross told Bloomberg on Thursday that Trump and Xi at best would come up with a "framework" deal at the G-20.
Top White House and Trump cabinet officials say they are reviewing various possible options in order to tackle the imbalances and questionable practices in bilateral trade with China, adding that there's little clarity with respect to the next possible steps. That's good, he said.
China agreed to buy more American energy and agricultural goods to narrow the trade deficit in May, but the deal was blocked by Trump, leading to the escalation of the trade war. President Donald Trump could also change his mind at any time about Navarro's role.
The two sides are "maintaining close contact" following a November 1 phone call between Xi and Trump, said Chinese Commerce Ministry spokesman Gao Feng.
Duty rates on a $200 billion in imports are due to rise to 25 percent from the current 10 percent, and Trump also is threatening to impose tariffs on another $267 billion of additional Chinese goods.
"We have another $267bn [in tariffs ready] to go, if we want to", he said.
Jim Acosta can keep his White House press pass, court rules
The judge said Acosta's credentials would be returned immediately and reactivated to allow him access to the White House. When the White House's doctored video of that event was exposed, the Trump administration dropped that argument .
US Vice President Mike Pence said on Tuesday that Beijing needed to change its behavior to avoid a new cold war with the United States.
Coming amid a downturn in United States stocks that has almost erased gains for the year, Trump's comments have led some to speculate that he is trying to influence market sentiment with the positive trade headlines.
"I think much of that will depend on Argentina", Pence said. That could entail China dropping some of its retaliatory measures and the USA agreeing not to go ahead with the planned January increase in tariffs on more than 6,000 product categories.
However, the US President isn't expected to make a decision until after he talks to Xi in Argentina.
But Kudlow said Navarro's comments did not represent Trump's thinking.
But solving the tech-related disputes won't be easy as it involves more-complicated concerns over competition and national security, said Tu Xinquan, the executive dean of the China Institute for WTO Studies at the University of International Business and Economics in Beijing.