Chinese President Xi Jinping shaking hands with then-Vice President Joe Biden inside the Great Hall of the People in Beijing in 2013 (Reuters)

US President Joe Biden and Chinese counterpart Xi Xinping agreed to hold a virtual summit by the end of 2021, a senior White House official said.

The two parties have an "agreement in principle" for the "virtual bilateral" relationship. Furthermore, the president expressed "how nice it would be to see Xi, which he has not done for some years," an official told reporters on condition of anonymity.

"We would expect them to have the ability to see one another, even if only virtually," he added.

The announcement of the bilateral meeting came while National Security Advisor Jake Sullivan was in Zurich with China's diplomat, Yang Jiechi. Sullivan reported that the Sino-US talks lasted six hours.

During the meeting between the two parties, Yang called for Sino-US cooperation, Xinhua reported.

"When China and the United States cooperate, the two countries and the world will benefit; when China and the United States are in confrontation, the two countries and the world will suffer seriously," he said, according to the agency's report.

Sullivan's trip to Switzerland constitutes a boost in Sino-US relations, as Biden argues for establishing "guardrails" for the growing contest between the two powers.

Previously, the New York Times said the Biden administration would maintain its Trump-era aggressive economic policy toward China through trade barriers and other punitive measures.

Katherine Tai, the United States Trade Representative, had said the United States would use its whole set of tools and develop a new one as per the US need to defend its economic interests from malicious and harmful practices.

Biden's hardline approach with China comes at a time of heightened tensions between the two powers and the world's two biggest economies, which is marked by very little contact between the two governments.