Trump's conversation with Xi Jinping: "I hold the Chinese president in high regard, yet he exhibits a robust and stubborn demeanor"
A Tete-a-Tete Between Xi and Trump: A Huge Shift in the Trade War
In a major development, Chinese President Xi Jinping and US President Donald Trump recently exchanged words in a highly anticipated phone call. This marked a significant milestone in their tumultuous relationship, particularly in the midst of an ongoing trade dispute. The conversation was, indeed, long overdue, with Trump eagerly waiting to lock horns with his Chinese counterpart since January.
So why the change of heart now? China proved it could hold its ground after four months of tit-for-tat tariff battles. Xi managed to secure a truce during the Geneva talks a few weeks back without even needing to step into the arena. This openly demonstrated China's strength and resolve. Trump's recent Twitter post also hinted at the US's desire for a deal, according to Beijing propaganda machinery. "I like President Xi of China, I've always respected him and will always respect him, but he's very tough, it's hard to make a deal with him". Well, music to the ears of Xi, who might soon be prepared to thaw the frozen relations.
China, too, needs a resolution. With the real economy starting to feel the pinch of the trade war, growth still hinges on exports. A thaw in the trade tensions is becoming increasingly important for China. The absence of Chinese Defense Minister Dong Jun from the Singapore's Shangri-La Dialogue last weekend also indicated a willingness to avoid direct confrontations and focus on trade negotiations instead.
But the road ahead is fraught with challenges. Both countries accuse each other of violating a recent agreement signed in Switzerland, which included a 90-day suspension of tariffs and the removal of countermeasures. Washington claims Beijing isn't easing restrictions on rare earth exports, while China criticizes the White House's attempts to limit access to advanced technologies and the recent decision to revoke visas for Chinese students. China's Foreign Minister Wang Yi described these measures as "unfounded" and damaging to China's rights.
Singling Out the Elephant in the Room
In a bid to steer the conversations towards a truce, Beijing, through Minister Wang, held a meeting with the new US Ambassador David Perdue. The message was clear: let's meet halfway to get things back on track. The underlying strategy seems to be setting the stage for a face-to-face meeting between Trump and Xi, where it's crucial for both leaders to maintain a diplomatic tone to avoid any impulsive moves that could potentially affect Xi's image. After all, Xi wants to continue being seen as a hardliner.
Enrichment:
Background of the Phone Call
The phone call between Xi and Trump marked a significant turning point in their relationship amidst escalating trade tensions. The conversation mostly revolved around the intricacies of the recently agreed-upon trade deal. This was the first confirmed communication between the two leaders since Trump resumed his role as President.
Why Xi Jinping Agreed to the Call
Xi Jinping likely agreed to the call for several strategic reasons:
- Trade negotiations: Resolving trade disputes is crucial for China to stabilize its economy and ensure continued access to the US market.
- Diplomatic Engagement: The call represents a diplomatic effort to improve relations and potentially ease tensions.
- Global Influence and Stability: Both leaders are interested in maintaining stability in global markets and demonstrating their commitment to international cooperation.
Potential Implications for US-China Relations
The implications of this conversation could significantly impact US-China relations:
- Trade Relations Improvement: The call suggests a renewed effort to resolve trade disputes, which could lead to more stable and favorable trade conditions.
- Enhanced Diplomatic Engagement: The exchange of invitations for mutual visits by both leaders indicates an intent to strengthen personal and diplomatic ties.
- Global Market Confidence: Positive outcomes from the call could reassure global markets about the stability of US-China relations, potentially boosting investor confidence and facilitating smoother international trade.
However, ongoing tensions and unresolved issues, such as technology restrictions and security concerns, remain challenges that will continue to shape the relationship between the two nations.
A possible average issue the leaders might address during their negotiations is the ongoing discord surrounding the implementation of the recent policy-and-legislation agreement, such as the claims and counterclaims of one another violating the terms, including the 90-day suspension of tariffs and the removal of countermeasures. The general-news coverage of these war-and-conflicts, in terms of trade, between these two nations has been widespread and continues to be a source of concern for both countries' economies.
Moreover, the politics surrounding these disputes have been complex, with both leaders pursuing strategies to assert their strength and secure favorable outcomes. As the road ahead is fraught with challenges, it will be essential for both President Xi and President Trump to maintain a diplomatic tone and find common ground to avoid any further escalation in these conflicts and ensure peace and stability in the global market.
