BEIJING – US President Donald Trump said he held a “very good” phone call on trade with Chinese leader Xi Jinping on June 5, adding that the two of them invited each other to visit their respective countries.
“The call lasted approximately 1½ hours, and resulted in a very positive conclusion for both countries,” Mr Trump said on Truth Social, adding that US and Chinese trade teams would hold a new meeting “shortly”.
“President Xi graciously invited the First Lady and me to visit China, and I reciprocated. As presidents of two great nations, this is something that we both look forward to doing,” he added.
“The conversation was focused almost entirely on trade. Nothing was discussed concerning Russia-Ukraine, or Iran.”
The call follows officials in Beijing and Washington accusing each other of jeopardising a trade war truce agreed in May in Geneva.
The Chinese Foreign Ministry said the call was initiated at Mr Trump’s request.
“I like President Xi of China, always have, and always will, but he is very tough, and extremely hard to make a deal with!!!” Mr Trump posted on June 4 on his Truth Social platform.
Mr Trump, who has roiled markets in recent months with successive rounds of tariffs, said on May 30 that China has “totally violated” the bilateral de-escalation deal.
China’s Commerce Ministry hit back this week, saying the Trump administration had since introduced “discriminatory restrictive measures”, including revoking Chinese student visas in the US.
With the fresh conflict threatening the fragile detente, market analysts were hopeful the conversation would pave the way to a trade off-ramp.
US stocks rose on news of the call, with the S&P 500 extending gains into a fourth straight day. But the numbers later dipped on weaker-than-expected jobs data
The phone call between the leaders marks their first known formal contact since Mr Trump took office. The last conversation between the two took place in January before Mr Trump’s inauguration.
Rare earths have emerged in recent days as a key flashpoint.
The US has accused China of reneging on a promise to relax export controls on such metals needed for cutting-edge electronics.
Beijing, in turn, has been frustrated by fresh US restrictions on the sale of chip design software and plans to start revoking visas for Chinese students.
Mr Trump has long said direct talks with Mr Xi were the only way to resolve differences between the nations.
But the Chinese leader had thus far been reluctant to get on the phone with his American counterpart, preferring that advisers negotiate key issues.
Export controls, as well as US actions on Chinese student visas and technology curbs, will likely be central to future negotiations.
US and Chinese trade chiefs only agreed in Geneva in May to lower tariffs for 90 days, as they worked towards a broader deal.
History suggests that any final deal could be a long time coming.
In 2018 during Mr Trump’s first term as president, the two sides agreed to put their dispute “on hold” after a round of negotiations, but the US soon backed away from that deal, leading to more than 18 months of further tariffs and talks before the signing of the “Phase One” deal in January 2020.
One goal for China this time around will be seeking relief from US export controls on cutting-edge chips vital for artificial intelligence and military advancement.
That is likely to be a sticking point in Washington, with both Democrats and Republicans in rare agreement that Beijing poses a national security threat.
Beyond strains in economic ties, geopolitical frictions are also growing.
China’s Foreign Ministry officials have protested against US Defence Secretary Pete Hegseth’s assertion at a gathering of military chiefs in Singapore that China poses an imminent threat to Taiwan, a self-ruled island claimed by Beijing. BLOOMBERG, AFP
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