Trump-Xi Phone Call: Strengthening China’s Tough Image and Potentially Shifting Power in Future Negotiations

On June 5, U.S. President Donald Trump held a critical phone call with Chinese President Xi Jinping. This was their first direct discussion since Trump took office for a second term and the first since tensions escalated in the ongoing trade war.

After the call, Trump hailed it as a win, stating it led to a “very positive conclusion for both countries.” He mentioned that Xi agreed to resume exports of rare earth minerals and magnets to the U.S. This was a relief for the auto industry, which had been worried about production disruptions due to halted supplies.

In addition to the trade discussions, Trump and Xi exchanged invitations for future visits, signaling a desire to keep communication lines open.

However, beneath the surface, this call reflected deeper issues in the U.S.-China relationship. Experts believe that Xi may have the upper hand in negotiations, using Trump’s willingness for dialogue to bolster his image as a strong leader domestically and globally.

### The Importance of Rare Earths

The discussion on rare earth minerals highlights a fragile balance in U.S.-China relations. Beijing paused rare earth exports to key American firms in response to U.S. tariffs, adding to the tension. Although both parties agreed to a 90-day tariff halt in Geneva recently, core issues like currency manipulation and export subsidies still loom large in the background.

According to a survey by the Pew Research Center, as of 2025, 65% of Americans view China unfavorably, complicating diplomatic efforts. Historically, trade disputes have often flared up under Republican administrations, suggesting a pattern that could deepen with upcoming elections.

### Signals from the Call

One noteworthy aspect was how the call was publicly characterized by China. They implied it was Trump who reached out, reinforcing Xi’s status as the more dominant figure. This framing serves not only to strengthen Xi’s image but also to position the U.S. as somewhat reactive.

Importantly, Trump’s talk of respect for China contradicts the hardline stance he had previously adopted. The Chinese statement emphasized that both sides should follow through on the Geneva agreement, subtly suggesting that any failure would lie with the U.S.

### Future Implications

The call did temporarily relieve some tensions. Reports suggest China has issued temporary export licenses for rare earth materials to major U.S. automakers following this dialogue. Yet, deep-rooted divisions remain, and observers warn that future discussions may hit similar snags.

As the landscape shifts, China seems better positioned to leverage its resources, particularly rare earths, as a bargaining chip. The U.S. is under pressure, as any disruption in supply could lead to inflation and economic issues, especially with midterm elections on the horizon.

Ultimately, Trump may need to engage with Xi again to navigate these turbulent waters, further cementing Xi’s leadership image while highlighting the complexities of their relationship.



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