United States-China hold trade talks on phone, discuss mutual issues

China's Vice Premier Liu He, USTrade Representative Robert Lighthizer and USTreasury Secretary Steven Mnuchin held a phone call on issues related to a phase one trade agreement on Tuesday, China's commerce ministry said.

Both sides agreed to maintain communication on remaining issues on phase one trade deal consultations, the ministry said.

The two sides also discussed core issues of concern and reached consensus on resolving relevant problems, it said.

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Commerce Minister Zhong Shan, central bank governor Yi Gang and vice head of state planner Ning Jizhe also participated in the phone call.

Earlier, Chinese President Xi Jinping asserted his country's interest in working out apreliminary trade dealwith the United States. He added that he believes in avoiding a trade war, but is nonetheless afraid of retaliating when necessary.

"We want to work for a 'phase one' agreement on the basis of mutual respect and equality," Xi told representatives of an international forum, Reuters reported.

"When necessary, we will fight back, but we have been working actively to try not to have a trade war. We did not initiate this trade war and this is not something we want", Jinping added.

Xi was at the Great Hall of the People responding to questions from representatives of the New Economy Forum organised by Bloomberg LP in Beijing.

(With inputs from agencies)