Trump and Xi Jinping Discuss Key Issues in Thursday Phone Call, Reports Chinese State Media

On Thursday, Donald Trump had a phone call with Chinese President Xi Jinping, a conversation noted by the state-owned Xinhua news agency. This call comes amid rising trade tensions between the U.S. and China, the world’s two biggest economies. It’s been a while since they last spoke, back in January, shortly before Trump’s second inauguration.

The White House hasn’t commented yet, but the timing of the call is significant. Just a day earlier, Trump had described Xi as “extremely hard to make a deal with.” The two countries have been accusing each other of not honoring a recent trade truce made in Geneva.

This deal, aimed at easing tensions, had temporarily reduced tariffs that had skyrocketed to as high as 145%. It also included plans for the U.S. to receive critical rare earth materials from China. However, last week, U.S. officials claimed that China hasn’t followed through on promises to approve important export licenses, causing shortages that might affect various U.S. industries.

On the other hand, China believes the U.S. has violated the Geneva agreement by issuing warnings about Huawei chips and halting sales of software to Chinese companies, along with canceling visas for Chinese students. These moves have added fuel to the fire.

The Chinese commerce ministry defended its position, stating that their export controls are common practice, as rare earth materials can be used in both civilian and military applications.

This ongoing trade war initially caused a significant drop in global markets. Fortunately, stocks have stabilized since the Geneva truce. Still, investors remain cautious, wondering if the fragile agreement will last or if tensions will escalate once again.

Experts in international trade suggest that strong relationships between leaders, like that of Trump and Xi, could help ease these tensions. However, historical context shows that previous agreements have quickly unraveled, especially during the pandemic when accusations of non-compliance arose.

As Trump prepares for another significant meeting, this time with German Chancellor Friedrich Merz, trade discussions will be front and center. Trump has already warned of imposing steep tariffs on EU imports if an agreement isn’t struck by July 9.

Understanding these dynamics is crucial. A recent survey by the Pew Research Center found that nearly 73% of Americans view China as a competitor, which reflects the growing sentiment around the globe regarding trade relations.

In conclusion, as Trump engages with world leaders, the outcomes could influence global markets and international relations for years to come. You can stay updated on these developments by checking trusted sources like Reuters or The Wall Street Journal.



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