Trump’s call to Xi underscores China’s leverage in trade dispute

BEIJING — In a powerful display of China’s growing influence in global trade, U.S. President Donald Trump held a phone call with Chinese President Xi Jinping on Thursday, amid rising tensions between the two leading economies.
The call, initiated at Washington’s request, is widely seen as a sign that China’s calm, consistent, and strategic approach to the ongoing trade dispute is beginning to yield results.
President Xi used the opportunity to put emphasis on cooperation and mutual respect. “Dialogue and cooperation are the only correct choices for China and the United States,” Xi said. He noted that recalibrating the direction of the giant ship of China-U.S. relations requires the two sides to take the helm and set the right course.
On broader regional issues, Xi addressed the Taiwan matter, urging the U.S. to act cautiously. He warned that Washington should not allow a small group of “Taiwan independence” separatists to draw China and the U.S. into the dangerous terrain of confrontation and even conflict.
He also called on the United States to roll back negative policies that harm bilateral relations.
President Trump, for his part, described the conversation as a “very good phone call,” lasting about 90 minutes. Posting on Truth Social, he confirmed the discussion focused mainly on trade, referencing the “recently made, and agreed to, Trade Deal.” He also indicated that further meetings between the two sides are being arranged. “There should no longer be any questions respecting the complexity of Rare Earth products,” he added. Trump said Xi invited him to visit China — an invitation he “reciprocated” — and reaffirmed America’s continued support for the one-China policy.
The phone call follows a temporary trade truce reached on May 12, when both countries agreed to a 90-day pause on new tariffs. The U.S. president has cut his 145% tariffs on Chinese goods to 30% for 90 days to allow for talks, while China reduced its taxes on U.S. goods from 125% to 10%.
While that agreement reduced some tensions, mutual suspicion has remained, with both sides accusing the other of undermining the spirit of the deal.
China has consistently maintained a patient and constructive stance throughout the dispute. While implementing proportional countermeasures, Beijing avoided inflammatory rhetoric, instead focusing on diplomacy, regional cooperation, and global engagement, offering a steady contrast to Washington’s more unpredictable approach.
Simultaneously, China bolstered trade and diplomatic relationships with neighboring countries and key international partners, positioning itself as a stabilizing influence.
Meanwhile, Washington’s initial hardline tactics—characterized by broad tariffs and restrictive policies—have gradually softened. Many analysts attribute this change to domestic economic pressures and China’s resilient response. Critics argue that the U.S. disrupted the global economy unnecessarily, only to retreat once Beijing and other major economies pushed back effectively.
This phone call is widely seen as an implicit acknowledgment of China’s strengthened position in global trade. Trump’s decision to initiate talks with Xi after months of tension signals a notable shift in tone.
As the first direct conversation between the two leaders since Trump assumed office in January, this moment carries particular significance. With negotiations set to resume, global attention will focus on whether Washington is prepared to engage with Beijing as an equal partner—and if the cooperative path China has long advocated will finally be embraced.
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