Trump and Xi hold telephone talks to defuse trade tensions

Beijing/ Washington: Chinese President Xi Jinping and US President Donald Trump held a prolonged telephone discussion on Thursday, seeking to ease ongoing trade tensions and revive momentum following the Geneva truce reached last month.
According to China’s official Xinhua news agency, the conversation was held at the request of the US side. President Xi called for handling contentious issues—particularly Taiwan—with care, while reiterating the need for mutual respect in trade negotiations.
“The two countries should make full use of existing consultation mechanisms,” Xi said, as quoted in a statement issued by Beijing. He added that China remained sincere in its approach but stood firm on its core interests.
The phone conversation, which reportedly lasted around 90 minutes, centered largely on trade issues. Trump, in a post on Truth Social, said, “I just concluded a very good phone call with President Xi, of China, discussing some of the intricacies of our recently made, and agreed to, Trade Deal.”
Trump noted that both nations’ negotiating teams would meet soon at a location yet to be determined. He named Scott Bessent (Treasury), Howard Lutnick (Commerce), and Ambassador Jamieson Greer (USTR) as the US representatives in upcoming talks.
Xi, during the call, said China had been implementing the Geneva agreement seriously and urged the US to “remove the negative measures it has taken” in order to foster progress. The Chinese press release also quoted Xi saying, “Dialogue and cooperation is the only right choice.”
The leaders also touched on geopolitical concerns, with Xi warning the US to act prudently on the Taiwan issue. “The US must handle the Taiwan question with caution, so as to avoid unnecessary confrontations,” Xi said. China claims Taiwan as part of its territory and regularly conducts military exercises in the region.
Trump, for his part, expressed optimism about US-China relations. “The US wants the Chinese economy to do very well. We can achieve great things together,” he said, adding that the US would continue to abide by the “One China” policy. Both leaders confirmed their commitment to the Geneva agreement under which tariffs had been mutually reduced—US duties lowered from 145 per cent to 30 per cent, and China’s from 125 per cent to 10 per cent. However, rare earth export curbs from Beijing remain unresolved, with US officials indicating China has not yet removed non-tariff barriers tied to those materials. The next round of trade talks is expected to be scheduled soon.