The U.S. will not levy new tariffs on Chinese exports, Chinese state media said after bilateral talks between Donald Trump and Xi Jinping on the sidelines of the Group of 20 summit in Osaka.

The world’s two biggest economies have agreed to restart trade talks, Xinhua news said, adding that the two sides will have discussions on “specific” issues.

The two leaders met for the first time in nearly seven months on Saturday, again on the sidelines of a global meeting, in an attempt to turn the heat down on a boiling trade war.

Trump is angry at the trade imbalance between the two countries, and has imposed rounds of tariffs on goods the U.S. imports from China. China retaliated by raising tariffs.

As the bilateral meeting began, Xi said he is prepared to exchange his thoughts and that he hopes to set the direction of China-U.S. relations “based on coordination, cooperation and stability.”

He added, “cooperation and dialogue are better than friction and confrontation.”

Trump responded by saying, “It would be historic if we can do a fair trade deal.”

“This could be a very productive meeting,” he said.

The summit is being closely watched around the world as Trump’s tariffs and sanctions and China’s retaliations are expected to disrupt supply chains and tamp down the global economy.

Washington and Beijing have not returned to the negotiating table since a ministerial session on May 10.

The Trump administration has expressed its readiness to impose new tariffs on $300 billion worth of goods if the summit fails.

Leading up to the summit, the U.S.-China trade war expanded beyond tariffs, with the Trump administration banning the sale of high-tech components and software to Chinese companies placed on what Washington calls its “entity list.” Huawei Technologies, a major provider of equipment that will power 5G next-generation mobile networks, headlines the list.

The U.S. Department of Justice has brought charges against Huawei for allegedly stealing confidential information from corporations in the U.S. This has pushed many American allies to reconsider Huawei’s participation in developing their 5G networks.

North Korea is also very much on Trump’s mind. The U.S. president is scheduled to fly to South Korea later on Saturday evening to meet President Moon Jae-in, just a week after Xi met North Korean leader Kim Jong Un in Pyongyang.

Trump on Saturday said he would like to meet Kim over the weekend on the border of North and South Korea.

North Korea’s Vice Foreign Minister Choe Son Hui responded by saying the proposal was a “very interesting suggestion,” the official KCNA news agency said.