The US president's less confrontational trade stance divides advisers as some push for a tougher approach on Beijing, sources have told the agency

US President Donald Trump has relaxed his combative stance toward China to boost the chances of a meeting with his Chinese counterpart Xi Jinping and secure a trade deal with the world's second largest economy, Bloomberg reported Wednesday, citing people familiar with the matter.

A summit between Trump and Xi now appears likely after US Secretary of State Marco Rubio met with Chinese Foreign Minister Wang Yi in Malaysia last week. Rubio described the meeting as "positive" and said both sides strongly desire a leadership summit. The Chinese government echoed the sentiment, calling the talks "pragmatic and constructive." 

Trump is now more interested in signing purchase deals with Beijing and celebrating quick wins instead of tackling the root causes of trade imbalances, the sources told the agency.

This contrasts with his earlier stance, which centered on cutting the US trade deficit through aggressive tariffs. In April, Trump imposed broad duties on over 90 countries, including China. Beijing retaliated, leading to a tariff standoff that peaked at 145% by the US and 125% by China. Talks in Geneva in May led to a temporary suspension of most new tariffs.

On Tuesday, Trump said the US would be fighting China "in a very friendly fashion," suggesting a preference for negotiation over confrontation. Treasury Secretary Scott Bessent hinted the US may delay the August 12 tariff snapback deadline, which is poised to raise tariffs on Chinese goods to 145%. A person familiar with the plan told Bloomberg the truce may be extended by three months.

Trump's softer trade stance has caused friction among advisers, some of whom want a tougher line on Beijing, Bloomberg reported.

Earlier, the US allowed chipmaker Nvidia to resume sales of its downgraded H20 chips to China, despite earlier pledges to keep AI tech out of Beijing's hands.

Some officials argue that loosening chip rules will embolden Chinese tech firms, while others, including Commerce Secretary Howard Lutnick and White House tech czar David Sacks, view limited chip exports as part of winning the AI race. "You want to sell the Chinese enough that their developers get addicted to the American technology stack," Lutnick told CNBC.