Trump’s Positive Outreach to China: Navigating Trade Talks
In a significant move, former President Donald Trump shared that his recent conversation with Chinese leader Xi Jinping was “very positive.” This marks their first dialogue since Trump left office, and both nations are gearing up for important trade discussions aimed at resolving ongoing tensions over tariffs and global supply chains, particularly regarding rare earth minerals.
After the hour-and-a-half call, Trump took to social media, announcing that teams from both sides would soon meet in a location yet to be determined. Key figures representing the U.S. in these discussions include Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick, and Trade Representative Jamieson Greer.
During the call, Xi extended an invitation for Trump and First Lady Melania to visit China, to which Trump reciprocated with an invitation for Xi to come to the United States. The Chinese Foreign Ministry noted that Trump initiated the call, emphasizing the need to move past the negative actions taken by the U.S. against China. Xi echoed this sentiment, urging for a stable course in bilateral relations.
Despite the positive tone of the call, Trump had previously expressed concern about negotiating with Xi. He stated, “I like President Xi… but he’s very tough and extremely difficult to make a deal with.”
Trade relations between the two countries hit a roadblock after an agreement on May 12 aimed at reducing tariffs. The stalemate stems from competition for economic advantage, with the U.S. accusing China of restricting the export of critical minerals, while China counters by highlighting U.S. restrictions on advanced chip sales and student visas.
As a response to keep discussions alive, Trump has slashed tariffs on Chinese goods from 145% to 30% for a 90-day period, while China has reduced corresponding tariffs on U.S. products from 125% to 10%. This back-and-forth has led to volatility in global markets and poses risks to trade.
Treasury Secretary Scott Bessent believes only direct talks between Trump and Xi can pave the way for serious negotiations, although underlying tensions are expected to remain.
Xi indicated China’s commitment to negotiations, affirming that they uphold their promises. Still, Trump’s vision remains clear: he aims to lessen America’s reliance on Chinese manufacturing and revive domestic industries, while China seeks to advance its capabilities in crucial sectors like electric vehicles and artificial intelligence.
The trade deficit with China reached $295 billion in 2024, according to the Census Bureau. As China has risen to become a major economic power, it currently faces challenges from an economic slowdown fueled by a real estate crisis and pandemic-related consumer spending dips.
The last time Trump and Xi spoke was in January, just days before Trump’s inauguration, where they discussed trade and China’s role in controlling drug trafficking into the United States. Trump’s recent tone has shifted toward caution, expressing disappointment that China has not upheld prior agreements, stating, “The bad news is that China has totally violated their agreement with us.”
As both sides prepare for further discussions, the path forward remains complex, with hopes that constructive dialogue can help resolve long-standing issues.
