WASHINGTON/BEIJING (Reuters) – Seeking to start dormant talks, a senior U.S. trade negotiator said on Wednesday he would meet with his Chinese counterpart ahead of next week’s meeting between President Donald trump and Chinese President XI Jinping in Japan as the two countries once again resolve their damaging trade dispute.

Trade talks between the world’s two largest economies broke down more than six weeks ago after U.S. officials accused China of reneging on commitments, dragging on a costly trade dispute that has crippled the global economy and disrupted supply chains.

U.S. trade representative Robert Lighthizer said at a congressional hearing that he will speak by phone with Liu he, China’s Vice Premier and chief negotiator in trade talks, “in the next day and a half” and then expects to meet with Liu in Osaka, where the June 28-19 G20 Summit along with U.S. Treasury Secretary Steven Mnuchin before trump’s meeting with XI Jinping.

“I think it’s in the interest of both China and the United States to have some kind of successful agreement. President (trump) said he definitely wants an agreement if we can get a big agreement for America, ” Lighthizer told The house Ways and means Committee.

After two days of talks to resolve the dispute last month in Washington ended in deadlock, interaction on trade between the two countries has been limited and trump has threatened to impose more tariffs on Chinese products in an escalation that businesses in both countries want to avoid.

It is unclear when formal U.S.-China trade talks will resume, but the United States is “certainly willing to engage” in talks with China, Lighthizer testified.

“We have a very unbalanced relationship with China, and we have one that risks job losses in the future,” Lighthizer said.

China said Wednesday that positive results are possible in trade talks with the United States, after trump and XI agreed to resume their troubled talks at the June 28-29 G20 meeting. The two leaders spoke by phone on Tuesday. Trump said he would meet XI Jinping at the G20 summit, which China confirmed.

Washington has already imposed 25% duties on $250 billion worth of Chinese goods, ranging from semiconductors and conductors to those imported into the US.

Trump has threatened to impose tariffs on another $325 billion of goods covering nearly all remaining Chinese imports to the United States, including consumer goods such as cellphones, computers and clothing.

China responded to the U.S. tariffs with its own fees. In response to questions from lawmakers about efforts by the U.S. trade team to get those lifted, Lighthizer said getting rid of Chinese retaliatory tariffs and securing commitments from China to increase purchases of U.S. goods such as agricultural goods are important U.S. goals in the negotiations.

The United States has pressured China to change its practices regarding intellectual property theft and the requirement that American companies share their technology to do business in China.

Executives from at least five U.S. companies plan to meet with Chinese Prime Minister Li Keqiang this week in Beijing, Bloomberg reported Wednesday, citing people familiar with the matter. The companies include Dow Inc, United Parcel Service Inc, Pfizer Inc and Honeywell International Inc, according to Bloomberg.

Speaking at a daily briefing, Chinese foreign Ministry spokesman Lu Kang said it was important to find a solution acceptable to both sides.

“I’m not getting ahead of myself, but communication over four decades shows that positive results can be achieved,” Lu said.

“The two leaders will talk about what they want,” Lu added. “The deal not only serves the interests of the two peoples, but also the aspirations of the world.”

News that us-China talks are back on the agenda boosted China’s stock markets, with the CSI300 index ending 1.3% higher and the Shanghai Composite index up 1.0%.

U.S. stocks rose after the Federal reserve kept interest rates steady and signaled a potential cut later this year, reassuring investors worried that a trade war between the U.S. and China could stall economic growth.

On Wednesday, new data emerged on supply chain disruptions caused by U.S.-China trade tensions.

Apple Inc has asked its major suppliers to estimate the cost of moving 15% to 30% of its manufacturing capacity from China to Southeast Asia as it prepares to restructure its supply chain, according to a Nikkei Asian review report on Wednesday.

Apple’s request was the result of a long-running trade dispute between the US and the US, but the trade decision will not change the company’s decision, the Nikkei reported, citing several sources. The iPhone maker has decided the risks largely dependent on manufacturing in China are too great and even rising, the Nikkei said.

Key iPhone assemblers Foxconn, Pegatron Corp, Wistron Corp, major MacBook maker Quantum Computer Inc, iPad maker Compal Electronics Inc, and AirPods makers Inventec Corp, Luxshare-ICT and Goertek were asked to evaluate options outside China, the Nikkei Reported.

Countries under consideration include Mexico, India, Indonesia, Malaysia and Viet Nam. India and Vietnam are among the favorites for smartphones, the Nikkei said.

In another development, the United States fined several companies for exporting goods through the Chinese special economic zone in Cambodia in an attempt to evade trump’s tariffs on Chinese imports, Arend Zvartjes, a spokesman for the U.S. Embassy in Phnom Penh, told Reuters .

Reporting by Kate Cadell in BEIJING and David Lawder in WASHINGTON; Additional reporting by Chris Prentice in NEW YORK, Beijing edition and Ben Blanchard, Prak Chan Toole in PHNOM PENH; Writing by will Dunham; Editing by Darren schuttler and Susan Thomas

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