Xinhua, China's state news agency, reported on Friday that Mr Trump had told the Chinese leader that "he looks forward to meeting Xi during the G-20 summit so they can have an in-depth discussion about some major issues".
Trump imposed new tariffs on roughly half of Chinese imports this summer while Beijing fired back with tariffs on most U.S. products.
President Trump has imposed tariffs on $250 billion worth of Chinese goods so far this year. "We are not on the cusp of a deal", Kudlow said.
Despite tariffs, he said USA economic growth expanded in the last two quarters and was on track to hit the Administration's 3 percent target for the full year.
The meal would give the two leaders more time to talk and create an atmosphere more conducive to negotiations, the sources said.
Despite the promise offered by the Trump-Xi telephone call, the level of tension between the two nations was demonstrated just hours after it ended when the United States filed charges against Chinese technology firm Fujian Jinhua Integrated Circuit Co and its Taiwanese partner.
Trump imposed new tariffs on roughly half of Chinese imports this summer, while Beijing fired back with tariffs on most USA products. A US Embassy spokesperson said Thursday in Beijing that the Trump administration had no plans to send a high-level representative to the expo, adding that China needed to make the necessary reforms to end what the US says are unfair trade practices.
Washington accuses the two companies of stealing trade secrets from USA memory chip maker Micron Technology, but China's commerce ministry opposes the charges and has demanded Washington "remedy the mistake".
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The Prime Minister said Sardar Patel, a veteran administrator, had also popularised the idea of cooperative housing societies. The current tallest statue in the world-the 502ft high Spring Buddha Temple in China-will be eclipsed by the 597 ft.
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Beijing has hit back with its own duties on United States imports.
However, a senior Trump administration official on dismissed the report as untrue, a CNBC reporter said in a post on Twitter. While Beijing is open to striking a deal that narrows the trade deficit, officials have resisted Trump's other demands - including an end to subsidies for strategic industries, a stop to forced technology transfer and more competition for state-owned enterprises.
Washington and Beijing have been locked in a trade war since July, slapping tariffs of up to 25 per cent on imports of each other's products.
The two nations had already imposed tariffs on $50 billion of each other's goods before the September sanctions.
The last round of trade talks with China ended in August with no concrete steps toward reaching a deal.
"I don't buy the story for a second", said Michael Every, head of Asia financial markets research at Rabobank in Hong Kong.
Earlier Friday, the Chinese foreign ministry said Trump and Xi had an "extremely positive" phone conversation Thursday.