President Xi Jinping urged his US counterpart to back down from protectionist trade barriers that are rocking the global economy during a phone call that lasted more than an hour on Thursday, multiple media outlets have reported.
US President Donald Trump described the call, reportedly requested by the US as a way to shore up a fragile truce in its trade war with China, as “very positive” on social media. Trump claimed that he and Xi had resolved issues around critical rare earth minerals, which China recently tightened export controls on – to Washington’s ire.
Trump also claimed that his trade negotiators would meet again soon with Chinese officials, and that each side would welcome an in-country visit from the other.
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Last month, the US agreed to back down on the massive tariffs it had imposed on China following Trump’s so-called “Liberation Day” announcement in April. China followed suit by lowering the tariffs it had imposed on US imports in response. This deal, negotiated in Geneva, resulted in duties charged on most Chinese goods imported by the US falling to 30 percent, and those charged on US imports to China dropping to 10 percent.
However, both sides have accused the other of violating the Geneva agreement. Beijing has not lifted restrictions on the rare earth exports essential to a number of US industries, including defence and car manufacturing (though these restrictions are imposed on all China’s trade partners, not just the US). Meanwhile, the US further tightened its exports to China of technologies related to semiconductor production, limiting Beijing’s access to equipment and materials that would advance the crucial AI sector.
After Thursday’s talk, state media reported President Xi saying that China had been “seriously and earnestly executing the agreement” reached in Geneva. He emphasised the need to “recalibrate the direction of the giant ship of China-US relations” – an action he noted would require dialogue and cooperation from both sides.
The call between the two leaders was their first time speaking since Trump took office in January.
