China and US have been in talks since December in an effort to end the trade war that is hurting the global economy.
President Donald Trump affirmed the US has found agreement on some of the toughest points in trade talks with China.
The Chinese President echoed the optimism, touting substantial progress, according to the Chinese state news agency Xinhua.
The American president said the US and China had agreed on “a lot of the most difficult points” but that “we have some ways to go”.
“This is an epic deal, historic – if it happens,” said Mr. Trump. “This is the Grand Daddy of them all and we’ll see if it happens. It’s got a very good chance of happening.”
Mr. Trump however stated that it would be tough for the US to allow trade to continue with China in the same way as in the past, if a deal did not materialize.
There are conflicting signals like the imposition of billion-dollar tariffs on one another’s goods over the past year.
The trade talks have been going on but have been rocky sometimes.
Reports shows that the two countries have reached new consensus on important issues like the text of the economic and trade agreement.
However, the US accuses China of stealing intellectual property from American firms, forcing them to transfer technology to China.
China on the other hand accuses the US of launching the largest trade war in economic history and is not likely to embrace broader structural changes to its economy.
Failing to achieve the deal result in US doubling the 10% tariffs on Chinese goods and impose fresh tariffs.