Trade talks were initially expected to wrap up Friday but had been extended through the weekend in a sign of positive momentum.
The Trump administration has been pressing China for specific commitments for sweeping changes to protect intellectual property rights, end cyber-theft of trade secrets and practices that coerce US companies to turn over technology to Chinese firms.
"We are optimistic to hear that there has been progress on a trade deal and that the Trump administration has pushed back the deadline for an increase of tariffs", said Rebecca Mond, vice president of federal government affairs at the Toy Association, a trade association for the USA toy industry.
Trump announced on Sunday that he would be planning a meeting with Chinese President Xi Jinping at his Mar-a-Lago estate in Florida to pursue a trade agreement.
According to data released by Tariffs Hurt the Heartland - a campaign backed by NRF - recent tariffs imposed by the administration cost US businesses $2.7 billion in November 2018 alone. Out of those, are there any clues where progress might have been made?
During talks that extended into the weekend, USA and Chinese negotiators were discussing on Sunday the issue of how to enforce a potential deal after making progress on other structural issues, according to a source familiar with the talks.
Speaking to a gathering of the nation's governors at the White House, Trump was optimistic about closing the remaining gaps over US demands for major changes in China's state-led economic system.
Trump and Xi called a 90-day truce previous year to give their advisers time to negotiate a deal.
The tariffs have hurt both countries, increasing the price of Chinese-made televisions and baseball gloves for American consumers, and making American-grown soybeans and pork more expensive in China. "We expect more U.S. crude to come to China as a result of Beijing's promise to increase USA energy imports", a Beijing-based trader told S&P Global Platts.
Following a week of mostly being flat, on Friday Wall Street shares rose slightly, after Chinese negotiators agreed to extend their stay in Washington DC. Asked if he would consider dropping criminal charges against Huawei as part of a deal, Trump said Friday that he would discuss the issue with the attorney general and USA attorneys.More news: German Firefighters Work To Free Rotund Rat Stuck In Manhole Cover
So far, the U.S. has imposed tariffs on Dollars 250 billion worth of Chinese goods.
The U.S. stock market opens at 9:30 a.m. EST on Monday, Feb. 25.
U.S. equity index futures opened higher on Sunday evening as trading kicked off for the week.
"If all works well, we're going to have some very big news over the next week or two", Trump told American governors at a White House ball. The Shanghai Composite surged 5.6 percent on Monday. The Shanghai Composite Index of Chinese equities plunged 25 percent past year, recouping about 12 percent in 2019. -Chinese relations came as the president prepared for a summit with with North Korean leader Kim Jong Un this week in Hanoi, Vietnam.
But Trump still wasn't pleased, disagreeing with his USA trade representative in front of reporters.
"This is clearly not the end of the negotiations, let alone the underlying tension between the two countries", said Louis Kuijs of Oxford Economics. Tariffs and commodities were also on Sunday's agenda, he said.
Officials were seeking to iron out differences on changes to China's treatment of state-owned enterprises, subsidies, forced technology transfers and cyber theft.
Reuters reported exclusively on Wednesday that the two sides are starting to sketch out an agreement on structural issues, drafting language for six memorandums of understanding on proposed Chinese reforms.
Trump said he did not like MoUs because they are short-term, and he wanted a long-term deal.
To which, Lighthizer acquiesced, saying he would use the term "trade agreement" instead. Now there have been trade talks to avoid this. There was no daylight between the two men, the source said.