Trump and Xi Rekindle Dialogue as Trade Talks Resume
In what could mark a shift—though it’s too early to say for sure—President Donald Trump announced on Thursday that he had a “very good” phone conversation with Chinese President Xi Jinping. According to Trump, the call, which lasted around 90 minutes, was focused almost entirely on trade, a topic that’s long defined the push-and-pull between the world’s two largest economies.
Trump posted the update on his Truth Social account, describing the discussion as detailed, constructive, and promising. While the upbeat tone was familiar—he’s long preferred public optimism in these matters—there were also signs that both sides are again leaning into diplomacy, if cautiously.
A new phase—or just another reset?
The core message was straightforward: U.S. and Chinese trade officials will be meeting again soon. No date or location has been confirmed. Trump said the American delegation will include Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick, and U.S. Trade Representative Jamieson Greer. All three are new to the high-wire of U.S.–China negotiations—at least in their current roles—so how they carry this forward is still an open question.
What’s interesting, though, is what was not discussed. “Nothing was discussed concerning Russia/Ukraine, or Iran,” Trump stated. That omission feels deliberate. Perhaps the intention was to keep the focus narrow, or perhaps it signals deeper geopolitical rifts that the two sides have quietly agreed to sideline for now. Either way, the absence was notable.
Rare Earths and the ever-complex supply chain puzzle
One phrase jumped out: “There should no longer be any questions respecting the complexity of Rare Earth products.” It’s a bit opaque, honestly. Rare earth elements—vital in everything from electric vehicles to defense systems—have long been a leverage point in the U.S.–China economic standoff. China controls over 60% of global rare earth refining, according to Brookings, and every time tensions rise, the specter of a supply disruption re-emerges.
A diplomatic invitation with political overtones
Toward the end of the call, Xi apparently extended an invitation for Trump and First Lady Melania Trump to visit Beijing. Trump accepted, reciprocating the offer. It’s a symbolic gesture—these visits often are—but one that carries weight.
The optics, the politics, the unknowns
There’s a real temptation to see this as a breakthrough. Trump certainly wants it to be seen that way. After all, he returned to office in January 2025 with a mandate—however controversial—to “finish the deals” he says were left halfway done in his first term. Trade with China is a pillar of that unfinished business.
But we’ve been here before. The 2019 “phase one” deal promised plenty, yet by most accounts, it delivered far less. The pandemic, geopolitical tensions, and supply chain upheavals shifted the terrain.
What’s next?
We’ll learn more once the teams actually meet, assuming they do. But even then, the pace of progress could be slow. With the U.S. election cycle already casting a long shadow over every move—and with Xi navigating his own domestic economic headwinds—the road ahead is anything but smooth.
