United States President Donald Trump said he anticipates reaching a “great deal” with Chinese President Xi Jinping during their meeting in South Korea this week, signaling a potential breakthrough in the renewed trade war between Washington and Beijing.

Speaking Wednesday at a business luncheon on the sidelines of the Asia-Pacific Economic Cooperation (APEC) summit in Gyeongju, Trump told attendees the United States and China are close to a trade pact that would benefit both economies.

“That’s really a great result. That’s better than fighting and going through all sorts of problems,” Trump said, adding that the agreement would be “something …