WASHINGTON (AP) — President Donald Trump said Thursday that his first call with Chinese leader Xi Jinping since returning to office was “very positive,” announcing that the two countries will hold trade talks in hopes of breaking an impasse over tariffs and global supplies of rare earth minerals.
"Our respective teams will be meeting shortly at a location to be determined," Trump wrote on his social media platform after the call, which he said lasted an hour and a half.
Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick and U.S. Trade Representative Jamieson Greer will represent the U.S. side in negotiations.
The Republican president, who returned to the White House for a second term in January, also said Xi “graciously” invited him and first lady Melania Trump to China, and Trump reciprocated with his own invitation for Xi to visit the United States.
The Chinese foreign ministry said Trump initiated the call between the leaders of the world's two biggest economies.
The ministry said in a statement that Xi asked Trump to “remove the negative measures” that the U.S. has taken against China. It also said that Trump said “the U.S. loves to have Chinese students coming to study in America,” although his administration has vowed to revoke some of their visas.
Comparing the bilateral relationship to a ship, Xi told Trump that the two sides need to “take the helm and set the right course” and to “steer clear of the various disturbances and disruptions," according to the ministry statement.
Trump had declared one day earlier that it was difficult to reach a deal with Xi.
“I like President XI of China, always have, and always will, but he is VERY TOUGH, AND EXTREMELY HARD TO MAKE A DEAL WITH!!!" Trump posted Wednesday on his social media site.
Craig Singleton, senior director of China program at the Foundation for Defense of Democracies, said the phone call “simply paused escalation on trade” but “didn't resolve core tensions” in the bilateral relations.
With the White House still weighing more punitive measures, the current calm could be upended as Beijing also is prepared to fight back the moment Washington escalates, Singleton said. “We’re likely one competitive action away from further confrontation,” Singleton said.
In his note, Gabriel Wildau, managing director at the consultancy Teneo, wrote that the phone call “prevented derailment of trade talks but produced no clear breakthroughs on key issues.”
Trade negotiations between the United States and China stalled shortly after a May 12 agreement between the two countries to reduce their tariff rates while talks played out. Behind the gridlock has been the continued competition for an economic edge.
The U.S. accuses China of not exporting critical minerals, and the Chinese government objects to America restricting its sale of advanced chips and its access to student visas for college and graduate students.
Trump has lowered his 145% tariffs on Chinese goods to 30% for 90 days to allow for talks. China also reduced its taxes on U.S. goods from 125% to 10%. The back and forth has caused sharp swings in global markets and threatens to hamper trade between the two countries.
Treasury Secretary Scott Bessent had suggested that only a conversation between Trump and Xi could resolve these differences so that talks could restart in earnest. The underlying tension between the two countries may still persist, though.
During the call, Xi said the Chinese side is sincere about negotiating and “at the same time has its principles,” and the Chinese president said “the Chinese always honor and deliver what has been promised,” according to the Chinese foreign ministry.
Even if negotiations resume, Trump wants to lessen America’s reliance on Chinese factories and reindustrialize the U.S., whereas China wants the ability to continue its push into technologies such as electric vehicles and artificial intelligence that could be crucial to securing its economic future.
The United States ran a trade imbalance of $295 billion with China in 2024, according to the Census Bureau. While the Chinese government’s focus on manufacturing has turned it into a major economic and geopolitical power, China has been muddling through a slowing economy after a real estate crisis and coronavirus pandemic lockdowns weakened consumer spending.
Trump and Xi last spoke in January, three days before Inauguration Day. The pair discussed trade then, as well as Trump’s demands that China do more to prevent the synthetic opioid fentanyl from entering the United States.
Despite long expressing optimism about the prospects for a major deal, Trump became more pessimistic recently.
“The bad news is that China, perhaps not surprisingly to some, HAS TOTALLY VIOLATED ITS AGREEMENT WITH US,” Trump posted last week. “So much for being Mr. NICE GUY!”
___
Chris Megerian, Didi Tang And Will Weissert, The Associated Press
