According to the Reuters President Donald Trump said on Monday that China had contacted the U.S. trade officials and have shown their inclination to hold talks and make some negotiations in the trade war that is raging between the two countries. President Donald Trump has welcomed the news and said that they would be a very positive development for the world.

Speaking on the sidelines of the G7 summit, a summit of major industrialized nations, Trump has seconded the Chinese President Xi Jinping, calling him a great leader and said he welcomed his desire for a deal and for calm.

An increasingly bitter trade war between the world’s two largest economies,China and United States, showed a sharp incline on Friday, with both sides leveling more tariffs on each other’s exports.

However there are some glaring facts that U.S. has to keep in mind in the trade war, the U.S. toolbox remains limited in comparison to what China’s state-directed economy can wield. Trump remains politically constrained by a Congress understandably eager to roll back his tariffs on U.S. allies, and he is fighting push back from the U.S. private sector, keen to protect its investment in China at all costs. In contrast, Chinese President Xi Jinping sits at the top of an authoritarian system that enables him to implement policy virtually unchecked. The vast reach of the CCP’s apparatus can be used to support behavior that falls outside of World Trade Organization norms, such as boycott measures, baseless customs restrictions, and export bans, in the pursuit of victory.

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