President Donald Trump had a significant phone call with Chinese leader Xi Jinping on Thursday. This conversation marked a new chapter in U.S.-China trade relations, with both leaders discussing key issues, particularly the export of rare earth minerals. Trump described the 90-minute call as “very productive” and stated that both sides agreed to resume trade talks soon. He shared on social media that the call ended positively for both countries.
During the call, which was the first direct conversation between the two leaders since Trump took office again in January, they focused mainly on rare earth magnets and other related topics. Trump expressed optimism, saying, “I think we’re in very good shape with China and the trade deal.”
This renewed dialogue comes after rising tensions in recent weeks, with both nations accusing each other of breaching a tariff agreement made in Geneva last month. U.S. officials claimed that China was delaying export licenses for rare earth minerals, which are essential for various industries, including automotive and defense. Meanwhile, China criticized new U.S. restrictions on advanced chip technologies and student visas.
The call followed earlier communications between Chinese Foreign Minister Wang Yi and U.S. Ambassador David Perdue, as well as discussions in Beijing involving Chinese Vice President Han Zheng and a U.S. delegation. Trump announced that key figures from his administration, including Treasury Secretary Scott Bessent and Commerce Secretary Howard Lutnick, would lead upcoming negotiations with Chinese officials, indicating that discussions may expand beyond tariffs to include national security issues in high-tech sectors.
China’s official response to the call confirmed the conversation and highlighted Xi’s request for the U.S. to lift “negative” trade measures, such as export restrictions and visa limitations. Xi also advised the U.S. to proceed carefully regarding Taiwan. Interestingly, the Chinese summary did not mention rare earths, which was a significant topic for Trump.
Xi’s willingness to engage directly in the call was seen as a sign that China is open to improving relations. According to Chinese state media, the call was initiated at Trump’s request. Trump reassured that Chinese students would continue to be welcomed in the U.S., stating, “It’s our honor to have them, frankly.”
While some analysts doubt that the call resulted in concrete breakthroughs, the markets reacted positively. The S&P 500 recovered from earlier losses, and the dollar gained strength following Trump’s comments online.
This renewed engagement with China comes as the Trump administration prepares for important trade talks with Europe. German Chancellor Friedrich Merz is scheduled to meet with Trump at the White House on Friday, as the 90-day pause on transatlantic tariffs is set to end soon. The success in reviving discussions with China may bolster Trump’s position in these upcoming negotiations.
Trump expressed confidence in his approach, stating, “We’re going to solve a lot of problems together. And we’re going to do it very soon.”