Chat Over Trade Tensions: Trump and Xi on the Line
Trump and Xi engage in a telephone conversation amidst the ongoing trade dispute - Trump and Xi engage in a telephone conversation amid escalating trade disagreements.
In the midst of the ongoing trade war, President Donald Trump and Chinese Leader Xi Jinping had a lengthy phone conversation. Per Trump's Truth Social post, the call lasted approximately an hour and a half, focusing on the finer points of the trade agreement reached in May. Trump announced he had accepted an invitation to visit China, inviting Xi to Washington in return. The Chinese side confirmed this proposed visit to Beijing.
Regarding the trade dispute between these two economic titans, Trump's assessment of the call sounded optimistic compared to Beijing's stance. Trump stated that high-level representatives from both nations would soon engage in additional trade talks, reporting "very positive results."
On the other hand, Xi adopted a more cautious tone, emphasizing the importance of adhering to mutual agreements, as stated in a Chinese communiqué. Xi reiterated the Chinese commitment to fulfilling their obligations, stating that since the May Geneva consensus, both sides should remain faithful to their commitments. The Chinese side asserts that they have diligently carried out the agreement since its inception.
Beijing called on the U.S. to objectively evaluate the progress made and withdraw any negative measures against China. Both leaders agreed to continue implementing the consensus and kickstart a new round of talks as soon as feasible.
A bone of contention during the conversation was rare earths, with Trump suggesting there would be no more issues in this regard, but offering no further details. China holds a dominant position in the global market for rare earths, which are crucial for the production of countless goods.
Trump expressed enthusiasm for the planned visits, saying that both leaders looked forward to this opportunity. He mentioned a potential trip to China with his wife, Melania.
During their conversation, Russia, Ukraine, or Iran were not discussed, as per Trump's account. The previous day, Trump had declared on Truth Social that he admired Xi but found it challenging to negotiate a deal with the Chinese leader.
This phone call marked the first known conversation between the two leaders since Trump assumed office in January. Though there had been a brief exchange before inauguration, no direct contact had been reported since.
Despite expressing a harmonious relationship with Xi, Trump's actions have escalated the long-standing conflict between the two nations. Previously, Trump had increased tariffs on Chinese imports to the US multiple times, reaching a staggering 145%. In response, China implemented counter-tariffs.
Post the agreed-upon truce in mid-May and the subsequent mutual reduction in tariffs, tensions have risen once more, with underlying disagreements persisting. Moreover, a new sanctions package against Russia is currently being prepared in the U.S. Senate, according to Republican Senator Lindsey Graham. The sanctions would target countries continuing to purchase Russian energy products, potentially impacting China significantly.
- The ongoing trade tensions between the EC countries and China might be influenced by the optimistic tone set by President Donald Trump and Chinese Leader Xi Jinping during their phone conversation, as they planned for high-level representatives to engage in additional trade talks.
- The employment policy of EC countries could be affected by the outcomes of these trade talks, as the production of goods dependent on rare earths, a market largely controlled by China, is a point of contention between the two economic powerhouses.
