China meeting 'a very difficult one'

(REUTERS) U.S. President Donald Trump set the tone for a tense first meeting with Chinese President Xi Jinping next week by tweeting on Thursday that the United States could no longer tolerate massive trade deficits and job losses.

The White House said Trump would host Xi next Thursday and Friday at his Mar-a-Lago retreat in Florida. It said Trump and his wife, Melania, would host Xi and his wife, Peng Liyuan, at a dinner next Thursday.

In a tweet on Thursday evening, Trump said the highly anticipated meeting between the leaders of the world's two largest economies, which is also expected to cover differences over North Korea and China's strategic ambitions in the South China Sea, "will be a very difficult one."

"We can no longer have massive trade deficits and job losses," he wrote, adding in apparent reference to U.S. firms manufacturing in China: "American companies must be prepared to look at other alternatives."

Despite a string of U.S.-China meetings and conversations that have appeared aimed at mending ties after strong criticism of China by Trump during his election campaign, U.S. officials have said the Republican president will not pull his punches in the meeting.

General Electric Co Chief Executive Officer Jeff Immelt urged Trump on Thursday to maintain the country's economic relationship with China, saying the United States had much to gain from globalization.

"The country loses if we don't trade. The relationship with China is key," Immelt told an aviation panel hosted by industry group the Wings Club. "If you give up on trade, you give up on the best lever that the president of the United States has in negotiating around the world. I just think that President Trump is too smart to give up on that."

The U.S. Commerce Department said earlier that Beijing must change its trade practices and the way its state enterprises operate.