Kudlow used a football analogy featuring his favorite team to describe how a deal between the two sides could fail to materialize. Washington is pushing Beijing to remedy what USA officials see as decades of unfair and illegal trading practices.
Nonetheless, after the meeting with Chinese President Xi Jinping over the latest G20 summit in the Japanese City of Osaka, Trump had agreed to cancel a tariff hike on all Chinese imports, untouched by trade spat so far, worth of $300 billion, meanwhile, Chinese President had also agreed to purchase some USA agricultural goods. But they said the two sides confirmed they'll keep negotiating to ease trade tensions.
Washington officials say US Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin held a phone conference with China's Vice Premier Liu He and Commerce Minister Zhong Shan.
One Chinese official familiar with the situation said trade talks would be re-started very quickly, but that there was a "fairly large gap" in the core demands of both countries and it would be a challenge to reach consensus on the toughest issues.
"The pressure for one side to give into the other is diffused right now".
Kudlow said the talks "went well" and were constructive.
But he suggested that the USA was in no hurry to finalize a deal. USTR said the components were "strategically important" to the "Made in China 2025" program. Enforcement of such reforms is also a sticking point for the United States.
"They believe the State Security Council or the Politburo can promulgate regulations and that would be sufficient".
Kudlow said statements from "various power centers" in China have indicated that the regime wanted "fair and equitable agreement".
"They are not reciprocal, they are not open, and they do not conform with the norms of world trading", he said.
US Secretary of Commerce Wilbur Ross stated that Huawei has not yet been blacklisted, but there are more flexible rules around the company.
The announcement of the talks came after China criticized the USA and its officials this week for agreeing to sell arms to Taiwan, which China regards as part of its territory, and for meeting with a Hong Kong newspaper publisher who's an outspoken critic of Chinese rule.
He also said relaxed USA government restrictions on Huawei could help the technology giant but would only be in place for a limited time.
But U.S. firms will not be able to sell any equipment to the Chinese telecoms equipment maker that would help it develop its 5G capabilities, he said.