Chinese President Xi Jinping today held telephonic talks with his US counterpart Donald Trump to resume a suspended dialogue aimed at improving bilateral economic ties, amid tensions over their huge trade imbalance. <br/><br/>The phone call between the two leaders came as the Trump Administration threatened tough action against China including punitive tariffs, sanctions and even a trade war. <br/><br/>Hong Kong-based South China Morning Post reported that tensions have escalated between Beijing and Washington in recent months, with China reporting a record 275.8 billion US Dollars trade surplus with the US last Friday, contrary to Trump's goal to narrow the US trade deficit with China.<br/><br/>Chinese Foreign Ministry Spokesman told media in Beijing that the two leaders discussed bilateral trade and the situation on the Korean Peninsula, especially the talks between the South and North Koreas to bring down the tensions.