So, if there is any truth to Trump's claim of friendship, he should be getting an advance hongbao from his Chinese pal during next Friday's G-20 meeting in Buenos Aires, Argentina.

Indeed, both leaders know that they have to swiftly move beyond the problems of bilateral trade and investments if they want to — as they must — come to terms with acute issues of war and peace between competitors whose nuclear triads are pointed at each other.

Xi apparently seems ready to get the trade dispute out of the way.

Here's what he said after his telephone conversation with Trump at the beginning of this month: "The two countries' trade teams should strengthen contact and conduct consultations on issues of concern to both sides, and promote a plan that both can accept to reach a consensus on the China-U.S. trade issue."

Trump kept it much simpler with tweets and soundbites, saying that trade discussions were "moving along nicely," and that the Chinese were "ready to make a deal."

And then we heard a shocking news. The U.S. Trade Representative issued a report last Tuesday that "China has not fundamentally altered its unfair, unreasonable, and market-distorting practices," and that "China had made clear it would not change its policies."

The policy changes requested by the U.S. essentially concern (a) a reduction of the bilateral trade imbalance, (b) illegal acquisition of American intellectual property, and (c) the use of "foreign investment restrictions to require or pressure the transfer of technology from U.S. companies to Chinese entities."

Breaking that deadlock during next Friday's U.S.-China summit could involve the following steps.

First, China — with its systematic, excessive and growing trade surpluses — should act according to the rules of international trade adjustment to promptly and meaningfully narrow its trade gap with the U.S. Large volumes of U.S. farm and energy products are now ready to go to China.

Second, Washington should address the structural and systemic trade complaints against China in World Trade Organization forums, in its own trade regulations and with strictly reciprocal measures. That would cover the cases of intellectual property protection, forced technology transfers, illegal export subsidies, etc.