Once again, Presidents Donald Trump and Xi Jinping have hit the reset button in trade talks between the world's two biggest economies, at least delaying an escalation in tension between the US and China that had financial markets on edge and cast a cloud over the global economy.
The dispute, which includes a feud over Huawei Technologies Co had also fanned fears it could threaten global growth.
There were no immediate details about the leaders' discussions, including whether they raised the thorny subject of Chinese telecoms firm Huawei. "As to whether or not we can make a deal, time will tell, but the relationship itself is really great", Trump said, adding that he and Xi continued to have "a very good friendship".
"With much of the fate of the global economy and the likely direction of markets hanging on the outcome of this pivotal Trump-Xi meeting, we think things will get worse before they get better", said ING Economics.
"Cooperation and dialogue are better than friction and confrontation".
A temporary freeze on further USA tariffs, as well as Chinese retaliation, while talks get back under way was discussed by negotiators before the leaders met for lunch, according to people briefed on the talks who asked not to be identified.
This is a developing story.
In the end, a deal of sorts was reached, with 19 members - minus the United States - agreeing Saturday to the "irreversibility" of the Paris climate deal and pledging its full implementation.
The Chinese President, for his part, recounted the era of "ping-pong diplomacy" that helped jump-start US-China relations two generations ago.
The months-long U.S. -China trade spat has resulted in tariffs on a total of 360 billion U.S. dollars of goods on one another as of date. It had also prompted lobbying from US companies like Intel Corp.and Alphabet Inc.'s Google, anxious about losing their sales to a major client. Indeed, North Korea said Trump's offer is a "very interesting suggestion".
Eleven rounds of talks have so far failed to end the standoff between the USA and China. He said his concern for now was helping out U.S. companies who have lobbied against the Huawei blacklisting.
"We're totally open to it, and I know you're totally open to it."
Trade talks between the United States and China stalled in May after Beijing backtracked on commitments to address structural issues, such as intellectual property theft, government subsidies to boost domestic sectors, and forced technology transfers. "We are also relieved that President Trump has reconsidered his threat to impose additional tariffs, which would have accelerated harm to all American consumers, workers, and businesses of all sizes".
In his opening remarks, Trump also spoke of his fondness for Chinese culture. The leaders of the world's largest economies arrive in Osaka from Thursday for the fourteenth meeting of Group of Twenty (G20). Trump has a number of bilateral meetings coming up at the G20, including with Australian Prime Minister Scott Morrison, Japanese Prime Minister Shinzo Abe, Indian Prime Minister Narendra Modi and Brazilian President Jair Bolsonaro.