U.S, China to resume trade talks in Washington in October

China and the United States will resume trade talks in Washington in early October, Beijing said, allaying fears that new punitive tariffs would lead to a breakdown in the protracted negotiations.

The world's two biggest economies have been embroiled in a tense year-long tariffs row, which escalated on September 1 when both sides swapped fresh levies on goods worth hundreds of billions of dollars.

The talks were supposed to have resumed in September but China's commerce ministry said Vice Premier Liu He, Beijing's pointman on trade, agreed to October in a phone call with U.S Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin on Thursday.

The officials agreed to "work together and take practical actions to create favourable conditions for consultations", the ministry said in a statement.

It added both sides would "maintain close communication" ahead of the talks.

The news will be seen as a sign of optimism in a trade war that has weighed on the global economy and stock markets while also shaking diplomatic relations between the two global powers.