US President Donald Trump and Chinese President Xi Jinping reached the agreement on the sidelines of the G20 summit in Japan.
Mr Trump said the talks had been "excellent".
He had threatened to impose an additional $300bn (£236bn) in tariffs on Chinese imports.
However after the meeting in Osaka, he confirmed that Washington would not be adding the additional tariffs, and that he would continue to negotiate with Beijing "for the time being".
The US president also announced that American companies could continue to sell to the Chinese technology firm Huawei, which Washington has banned because of security concerns.
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