In brief remarks to the press following his meeting Friday with Treasury Secretary Steven Mnuchin and Trade Rep Robert Lighthizer, President Xi affirmed that trade talks between the US and Chinese delegations will continue in Washington next week, and that while he hopes the two sides can reach a "mutually beneficial win-win agreement" he insisted that it wouldn't come at the expense of "certain principles."

"We are willing to adopt a cooperative approach to resolve and promote an agreement acceptable to both sides. However, cooperation requires certain principles."

CNBC's Eunice Yoon recounted the details of the announcement in a series of tweets. She described Xi's remarks as a reminder that China has "its own bottom line" in talks with the US.

U.S. trade negotiators @stevenmnuchin1 and @USTradeRep Lighthizer shaking hands with Xi Dada while Vice Premier Liu He looks on. The two Americans depart Beijing tonight while we await any statement on progress. #China pic.twitter.com/T6m2NU4dnj — Eunice Yoon (@onlyyoontv) February 15, 2019

U.S. negotiator says “very difficult issues” remain after U.S.-China trade talks @AFP — Eunice Yoon (@onlyyoontv) February 15, 2019

President Xi says trade negotiations with U.S. will continue in Washington next week, according to #China state media. — Eunice Yoon (@onlyyoontv) February 15, 2019

President Xi says hopes #China and U.S. can reach mutually beneficial win-win agreement, says official media. — Eunice Yoon (@onlyyoontv) February 15, 2019

President Xi says #China and U.S. have reached important step-by-step progress in latest trade talks, according to state media. — Eunice Yoon (@onlyyoontv) February 15, 2019

#China state media says U.S. negotiators @stevenmnuchin1 @USTradeRep Lighthizer maintain hope, willing to work with China to reach a deal in line with both sides’ interests. (Ahh... the deferential Americans...) — Eunice Yoon (@onlyyoontv) February 15, 2019

“We are willing to adopt a cooperative approach to resolve and promote an agreement acceptable to both sides. However, cooperation requires certain principles.” - President Xi’s reminder to the U.S. that #China has its own bottom line in trade talks, says state media @XHNews — Eunice Yoon (@onlyyoontv) February 15, 2019

The fact that "very difficult issues remain" suggests that China and the US remain at an impasse on the most contentious issues like structural reforms to the Chinese economy and IP theft. Other media reports affirmed that the US and China have agreed to work toward a memorandum of understanding, and CCTV reports tokenly that China and US reach consensus on main topics "in principle", but as with all prior negotiations, it is unclear if this represents any real progress. In another bid to try and push the market higher, Chinese media reported that the US and China had reached agreement on main issues "in principle"...which succeeded in pushing US futures higher, though, again, it's unclear what exactly this means. Xinhua also reported that issues including technology transfers, IP protection, non-tariff barriers, services, agriculture and trade balance have been discussed.

What's the solution? Why kick the can down the road.