"We are at a good point when we are having conversations. We are looking like we are in a better place," Nauert told reporters on Tuesday.
Nauert said Washington will keep the lines of communication with Chinese government open as China is coming to terms with some of the US concerns, including unfair trade policies.
The State Department spokesperson also noted no US-China meetings are scheduled at this point.
Earlier on Tuesday, the White House said US President Donald Trump is encouraged by recent statements from Chinese President Xi Jinping, but will continue the process of instituting tariffs on Chinese products until Xi takes specific actions to improve trade conditions.
Xi said in a speech on Tuesday during the Boao Forum for Asia that China planned to reduce import tariffs for vehicles and other goods.