BEIJING: Chinese Vice Premier Liu He says trade talks with the US have not broken down.

Hong Kong's Phoenix TV on Saturday showed Liu telling reporters that the failure to reach an agreement in the tariffs war with the US during meetings in Washington on Thursday and Friday was "a small setback".

Liu said he was cautiously optimistic. He spoke to reporters before leaving Washington for Beijing after the talks ended with China insisting a deal requires that tariffs on its exports be lifted first.

Liu also said the two sides were disagreeing over the number of goods China would pledge to purchase from the US to help reduce the American trade deficit.

The Trump administration raised import taxes on billions of dollars in Chinese goods from 10% to 25% Friday.