"China called last night our top trade people and said 'let's get back to the table' so we'll be getting back to the table," Trump said during a meeting with his Egyptian counterpart Abdel Fattah el-Sisi on the sidelines of the ongoing G7 Summit here.
"So I think they want to do something, they've been hurt very badly but they understand that this is the right thing to do and I have great respect for them. This is a very positive development for the world."
He said he respected his Chinese counterpart, Xi Jinping, for taking this initiative, adding it demonstrated that the latter wanted to end the ongoing trade war between the US and China.
Both nations have been embroiled in a tit-for-tat trade dispute that has escalated through tariffs.
Trump announced fresh tariffs on Friday just hours after China also unveiled plans to slap duties on $75 billion of US products.
The President said he had instructed American companies to look for alternatives to China.
The trade war, largely centred over steel and aluminium in the beginning, has since expanded to included various sectors including agriculture.
Trump has also targeted China for its alleged theft of intellectual property.
French President Emmanuel Macron hosted the G7 meeting which was also attended by German Chancellor Angela Merkel, Canadian Prime Minister Justin Trudeau, British Prime Minister Boris Johnson, Japanese Prime Minister Shinzo Abe, Italian Prime Minister Giuseppe Conte, European Union Council President Donald Tusk.
( With inputs from IANS )