China-US agree to abandon trade war, not raise tariffs: Xinhua

China and the US have agreed to abandon a threatened trade war, the news agency Xinhua reported Saturday. 

The two countries have also agreed not to raise tariffs on each other. 

The report came after Chinese Vice-Premier Liu He led a high-level delegation to the US. 

"The two sides reached a consensus, will not fight a trade war, and will stop increasing tariffs on each other," Xinhua reported He as saying. 

Also read: China agrees to import more from US

The state-owned news agency added that the two sides agreed to take effective measures to substantially decrease the US trade deficit in goods with China.

And that China will significantly increase its purchase of US goods and services to meet the consumption needs of the Chinese people.

Xinhua added that the two countries also agreed to meaningfully increase the export of US agriculture and energy products.