Donald Trump engaged in a significant phone conversation with Chinese President Xi Jinping that lasted an hour and a half. At the behest of the White House, an extraordinary conversation was held. It largely centered around trade topics that have soured relations between the two countries since Trump started a trade war in February 2023. The leaders reached what Trump described as a “very positive conclusion for both countries,” indicating a potential thaw in their diplomatic relationship.
In the months leading up to the conversation with Trump, Xi Jinping had set his sights on rare earths. These materials are essential for most advanced manufacturing sectors. Trump emphasized that “there should be no longer any questions respecting the complexity of Rare Earth products,” suggesting that both leaders acknowledged the significance of these materials in their trade negotiations.
Xi Jinping urged Trump to “withdraw the negative measures it has taken against China,” referring to the tariffs imposed by the United States on Chinese imports. The trade war kicked off in mid-2018 when the U.S. started increasing tariffs on a variety of imports from China. In response, Beijing raised tariffs on U.S. exports. A tentative truce reached in May further reduced U.S. tariffs on Chinese products to 30%. In exchange, China lowered its tariffs on U.S. exports to 10% and promised to lower trade barriers on critical minerals exported to the U.S.
In a January complaint, the Biden administration accused China of failing to restart shipments of U.S. mined critical minerals or rare earth magnets. These are materials that are really critical for so many different technologies. There’s a good chance that this issue was a hot topic of debate around their tables.
The conversation marked the first time Trump and Xi had spoken since the trade war escalated, highlighting a crucial moment for both leaders amid ongoing tensions. Trump expressed his appreciation for Xi, stating, “I like President Xi of China, always have, and always will, but he is VERY TOUGH, AND EXTREMELY HARD TO MAKE A DEAL WITH!” This recognition highlights the difficulties of finding common ground in a high-stakes relationship between two major global powers.
Xi focused the discussion on Taiwan, warning the U.S. to manage the situation carefully in order to prevent a confrontation. This warning reflects ongoing concerns about rising tensions in the Taiwan Strait and the potential repercussions of U.S. policy in the region.
As a part of their conversation, Trump extended an official invitation for Xi Jinping to visit the United States. In return, Xi offered an invitation for Trump to visit China.
“He invited me to China and I invited him here,” – Donald Trump
“We both accepted, so I will be going there with the first lady at a certain point and he will be coming here hopefully with the first lady of China.” – Donald Trump
This mutual goodwill to partake in direct talks would be a promising premise for a better bilateral relationship in the future.