Trump Expresses Respect for Xi, Supports One-China Policy, and Hopes for Strong Chinese Economy
U.S. President Donald Trump and Chinese President Xi Jinping engaged in a rare phone conversation on Thursday to address escalating trade tensions and disputes over critical minerals, leaving many key issues unresolved and set for further discussion.
During the call, which lasted over an hour, Xi urged Trump to reconsider trade actions that have unsettled the global economy and cautioned against provocative moves regarding Taiwan, according to a summary from the Chinese government.
Trump, however, took to social media to describe the discussion as largely focused on trade and “a very positive conclusion,” announcing upcoming lower-level U.S.-China talks and stating there should be no more questions about the complexities of rare earth minerals.
Speaking to reporters later, Trump said, “We’re in very good shape with China and the trade deal.” Both leaders extended invitations for reciprocal visits to each other’s countries.
The call came amid growing friction over “rare earth” minerals, a critical resource dispute that risked undermining the fragile trade truce between the world’s two largest economies. Neither side’s statements indicated a resolution on the matter.
Trump announced that a U.S. delegation led by Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick, and Trade Representative Jamieson Greer will soon meet their Chinese counterparts at a location yet to be announced.
Earlier in May, the U.S. and China agreed on a 90-day truce to roll back some of the hefty tariffs imposed since Trump’s inauguration. While stocks reacted positively, the deal did not resolve deeper tensions affecting the relationship, including issues like illicit fentanyl trade, Taiwan’s democratic governance, and U.S. concerns about China’s state-driven economic policies.
Since returning to office in January, Trump has frequently threatened punitive trade measures against various partners but often retracted them, creating uncertainty for global leaders and business communities alike.
U.S. markets rose on Thursday following news of the call.
China’s April decision to suspend exports of several key minerals and magnets continues to disrupt supply chains critical to automakers, chipmakers, and defense contractors worldwide.
Beijing views these mineral exports as leverage, potentially pressuring the U.S. politically if economic growth suffers due to shortages of mineral-dependent products.
The 90-day trade agreement remains fragile, with Trump accusing China of breaches and ordering restrictions on chip-design software and other exports to China. Beijing denied the allegations and threatened retaliatory actions.
“The U.S. should realistically acknowledge the progress made and remove the negative measures imposed on China,” China’s government said in a statement summarizing Xi’s remarks, published by the state-run Xinhua news agency.
In recent years, the U.S. has identified China as its chief geopolitical rival capable of challenging American economic and military dominance.
Despite this rivalry and ongoing tariff disputes, Trump has often expressed admiration for Xi, praising his toughness and ability to maintain power without term limits.
Trump has long sought direct communication with Xi, but China traditionally prefers to settle details through lower-level discussions before arranging leader-level talks.
U.S. officials consider direct talks between Trump and Xi crucial for overcoming persistent negotiation obstacles.
According to China, Thursday’s call was initiated by Trump.
China’s Foreign Ministry stated that Xi emphasized the importance of the U.S. handling the Taiwan issue cautiously to prevent separatist forces from dragging both countries toward confrontation or conflict.
Trump expressed respect for Xi and underscored the importance of the U.S.-China relationship, stating that a strong Chinese economy benefits everyone. He reaffirmed U.S. support for the One-China policy and praised the successful Geneva meeting, pledging to work with China to implement the agreement. Trump also welcomed Chinese students studying in the U.S.
Xi invited Trump to visit China again, a gesture Trump warmly appreciated.
The exact date of the leaders’ previous conversation remains unclear. Both sides acknowledged speaking on January 17, shortly before Trump’s inauguration, but Trump has not confirmed any calls since taking office. China has stated there have been no recent leader-level phone discussions.
Investors are closely monitoring the talks, concerned that a volatile trade war could disrupt supply chains during the critical lead-up to the holiday shopping season. Meanwhile, U.S. tariffs remain subject to ongoing legal challenges.
Trump and Xi have met several times, including exchange visits in 2017, but their last in-person meeting was at the 2019 G20 summit in Osaka, Japan.
