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Reuters said on Wednesday that the two sides are drafting memoranda of understanding on computer theft, intellectual property rights, services, agriculture and non-tariff barriers to trade, including subsidies.
On Friday, Trump said he did not like the memoranda because they are short-term in nature, and he wanted a long-term deal.
An industry source informed of the talks said the two sides had reduced their differences in intellectual property rights, market access and reduction of a trade deficit of nearly 400 billions of dollars with China. However, larger differences persist with respect to changes in China's treatment of SOEs, subsidies, forced technology transfers and computer theft.
There is also no agreement on the mechanism of application. The United States wants a strong mechanism to ensure compliance with China's reform commitments, while Beijing insists on what it calls a "fair and objective" process.
"The application is a difficult puzzle," said the source, who requested anonymity to be able to speak frankly about the discussions. "You need objective referees to make a decision."
It was not clear whether Saturday's discussions managed to smooth out these differences. Neither party shared the details of the day's discussions. Trump said the biggest decisions could be made during his meeting with Xi, probably in Florida next month, and that they could extend beyond trade to encompass Chinese telecommunications companies Huawei Technologies and ZTE.
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