The outlook of an all-out trade war between the U.S. and China remains a central question for the global economy, but the two sides appear to disagree even about whether talks have begun. President Donald Trump late Wednesday said the world’s two largest economies are “actively” discussing trade issues.

China called for all "unilateral" U.S. tariffs to be cancelled on Thursday, as signs emerged that the Trump administration may de-escalate its trade war with Beijing. China also clarified it has not held trade talks with Washington despite repeated comments from the U.