Xi, Trump Reconnect – Real Progress or Show?

President Donald Trump and China’s Xi Jinping have agreed to mutual state visits following their first phone call of Trump’s second term, signaling potential improvements in US-China relations despite ongoing trade tensions.

At a Glance

  • Trump and Xi Jinping held a 90-minute phone call focused primarily on trade issues
  • Both leaders extended and accepted invitations for state visits to each other’s countries
  • The call addressed China’s control of rare-earth minerals and ongoing trade tariffs
  • Recent trade tensions had escalated to tariffs reaching 145% before a May breakthrough paused increases
  • Chinese state media emphasized the need to remove “negative measures” like US tariffs

Presidential Communication Reopens Diplomatic Channels

President Donald Trump has confirmed plans to visit China and host Chinese President Xi Jinping in the United States following their first substantive communication since Trump began his second term. The 90-minute call, which Trump described as “very good,” primarily focused on resolving trade imbalances that have strained relations between the world’s two largest economies. This marks a potential turning point in US-China diplomacy after years of escalating tensions and retaliatory tariffs that have disrupted global trade.

Trump characterized the exchange in favorable terms, stating: “The call lasted approximately one and a half hours, and resulted in a very positive conclusion for both Countries.” 

“During the conversation, President Xi graciously invited the First Lady and me to visit China, and I reciprocated,” Trump added, confirming the mutual invitations that could set the stage for high-level diplomatic engagements in the coming months.

 

Trade Tensions and Tariff Negotiations

The dialogue comes after significant trade friction between the United States and China. By April, retaliatory tariffs had escalated to 145%, creating substantial economic pressure on both nations. A breakthrough in May led to a 90-day pause on most tariffs, with the U.S. reducing its rate to 30% and China to 10%. This temporary truce created an opening for the leaders to engage directly on resolving longer-term trade issues. 

“After the Geneva talks, China seriously implemented the agreement. The U.S. should seek truth from facts when looking at the progress made and withdraw the negative measures taken against China,” stated China’s official readout from the call, as reported by OPB. 

Among the specific issues discussed was China’s control of rare-earth minerals, which are critical components for technology and defense industries. Trump suggested that China might consider easing export controls on these strategic materials as part of broader trade negotiations. The United States has been working to reduce its dependence on Chinese supplies of these crucial resources, which are essential for everything from smartphones to military equipment.

Historical Context and Future Prospects

This renewed diplomatic engagement builds on a complicated history. Trump previously visited China in November 2017, and Xi visited Mar-a-Lago in April 2017 during Trump’s first term. A planned US state visit to China in 2020 was canceled due to the COVID-19 pandemic. The two leaders last met in person in June 2019, and their relationship has weathered significant challenges since then, including disputes over intellectual property, human rights, and Taiwan. 

“Xi Jinping pointed out that to course-correct the ship that is the Sino-US relationship, we should steer the rudder and set our direction. Especially important is to eliminate all kinds of interference and even sabotage,” reported China’s state news agency, Xinhua, as noted by OPB. 

During Trump’s first term, the two countries reached a “phase one” trade deal, but China fell short of its purchase commitments as the global pandemic disrupted economic activities worldwide. The recent call suggests both leaders seek to move beyond past disputes and establish a more productive economic relationship. US officials will continue trade talks with their Chinese counterparts, focusing on addressing the trade imbalance that has been a persistent concern for the Trump administration. 

Taiwan and Broader Geopolitical Concerns

The conversation reportedly included China’s stance on Taiwan, with Xi emphasizing the need to eliminate interference in Sino-US relations. This remains a sensitive issue, as China considers Taiwan part of its territory. At the same time, the United States maintains unofficial relations with the self-governing island and supplies it with defensive weapons. Notably absent from the discussion were other major geopolitical issues like the Russia-Ukraine conflict and Iran’s nuclear program, suggesting both leaders chose to focus primarily on bilateral economic concerns. 

While Chinese state media confirmed the call, their reporting did not explicitly mention the invitations for state visits, instead focusing on economic ties and the need for cooperation. The varying emphases in US and Chinese reporting highlight the different priorities and messaging strategies of both governments as they navigate this complex bilateral relationship. What remains clear is that both leaders see value in direct engagement and are taking steps toward stabilizing relations during Trump’s second term.

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