WASHINGTON (CP) – President Donald Trump and Chinese President Xi Jinping held a productive 90-minute phone conversation Thursday, agreeing to resume trade negotiations aimed at resolving ongoing economic disputes and strengthening bilateral cooperation between the world’s two largest economies.
Trump described the call as “very positive” and focused primarily on trade relations, announcing that Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick, and U.S. Trade Representative Jamieson Greer will lead renewed discussions with Chinese officials at a location to be determined. The conversation marked their first known dialogue since January and came after weeks of elevated tensions over tariffs and rare earth mineral exports. Trump indicated on Truth Social that issues surrounding critical mineral supplies had been addressed, stating “there should no longer be any questions respecting the complexity of Rare Earth products.”
The leaders also extended mutual invitations for state visits to their respective countries, demonstrating a commitment to diplomatic engagement. Chinese state media reported that Xi called for enhanced cooperation and consultation between the nations, emphasizing the importance of removing what he termed “negative measures” and strengthening exchanges in diplomatic, economic, military, and law enforcement fields. The Chinese leader stressed the need for both countries to respect each other’s concerns while pursuing mutually beneficial outcomes.
The productive dialogue follows a temporary trade agreement reached in Geneva last month, where both nations agreed to reduce punitive tariffs for 90 days while seeking longer-term solutions. The United States had imposed tariffs reaching 145 percent on Chinese goods, while China retaliated with 125 percent duties on American imports, effectively disrupting bilateral trade worth hundreds of billions annually. The Geneva accord brought those rates down to more manageable levels, providing space for continued negotiations.
American businesses have welcomed the renewed dialogue, particularly those dependent on rare earth minerals essential for manufacturing electric vehicles, defense equipment, and advanced technology products. China dominates global production of these critical materials, making stable trade relations vital for USA manufacturing and national security interests. The administration’s approach demonstrates America’s commitment to protecting its economic interests while pursuing constructive engagement with strategic competitors through diplomatic channels and principled negotiation.