Kudlow told CNBC earlier on Friday that negotiations between USA and Chinese officials have been progressing via video-conference and telephone since the last round of face-to-face talks in Washington two weeks ago, when Trump indefinitely extended a tariff truce.
He stressed that any trade mechanism contained in the deal must be fair and equal, referring to the USA demands for an enforcement process to ensure China complies withits commitments.
The two sides appeared to be closing in on a draft agreement a week ago, but Chinese leaders were taken aback by the collapse of the Trump-Kim talks in Hanoi, the paper said, quoting people familiar with Beijing's thinking.
Kudlow said a deal in America's best interests would include China's enforcement of an end to intellectual property theft and cyber hacking, a provision that allows USA companies operating in China to own themselves, and substantially lower or a potential end to tariffs on cars, commodities, industrial supplies and agriculture.
But his ambassador to China, Terry Branstad, told the Wall Street Journal on Friday that the two countries were not yet ready to bring Trump and Xi together for a summit and deal signing.
China's exports slumped in February as seasonal factory shutdowns and continued uncertainty from the trade war combined to drag on shipments, adding to concerns over a weakening global economy.
"Vice Premier Liu had a hamburger, and Lighthizer had eggplant and chicken", he added, describing a common Chinese dish.
It is unclear when or where senior negotiators from both sides will next meet.
"And during the talks, there was coffee and tea". They both drank boiled water.
Mr Wang said he is hopeful for a win-win deal that is in line with both countries' interests and the world's expectations.
White House economic advisor Larry Kudlow acknowledged that Trump's planned meeting at his Florida resort with Chinese President Xi Jinping - which officials said was expected to be held late this month to seal an agreement - could slip into April.
"We have them over a barrel", he said.
China's nearly 3,000 lawmakers are set to pass a new foreign investment law that bans forced technology transfer by local governments.
Over the recent past, the US President Donald Trump had been exploring a protectionist trade policy to safeguard US manufacturing from foreign competitions what Trump had frequently labelled as "unfair trade practice".
It will also ensure foreign firms can transfer funds freely in and out of the country when they want to repatriate profits or withdraw their investments.
China does not systematically give subsidies to its state-owned firms, said the head of its state assets regulator on Saturday, when asked about worldwide concerns China adopts implicit preferential policies for state-owned enterprises.
He said Chinese regulations does not stipulate that government subsidies are reserved only for state-owned enterprises and not private companies.