DEVELOPING: First Call Since InaugurationTrump And Xi Hit Reset With Trade And Rare Earth Talks!

This dialogue, which lasted for an hour and a half, marked a pivotal moment in U.S.-China trade relations. The President described the call as "very productive," indicating that both nations had agreed to recommence trade discussions in the near future. Trump also revealed that he and Xi had extended invitations to each other for state visits.

According to Breitbart, the President took to social media to express his satisfaction with the call's outcome. "The call lasted approximately one and a half hours, and resulted in a very positive conclusion for both Countries," Trump wrote. He further added, "There should no longer be any questions respecting the complexity of Rare Earth products."

June 06, 2025

In a subsequent interaction with the press, Trump elaborated on the conversation's focus, which was primarily on rare earth magnets and other related matters. He expressed confidence that the two nations had successfully "straightened out any complexity." The President also conveyed optimism about the state of U.S.-China trade relations, stating, "I think were in very good shape with China and the trade deal.

This renewed diplomatic interaction follows a period of heightened tension between the two superpowers. Both nations had accused each other of breaching a tariff truce agreed upon in Geneva last month. U.S. officials had criticized China for delaying export licenses for rare earth minerals, which are vital to the auto, defense, and electronics sectors. Conversely, Beijing had expressed its disapproval of new U.S. restrictions on advanced chip technologies and student visas.

This phone call marks the first direct conversation between Trump and Xi since the commencement of Trump's second term in January. Earlier in the week, there had been indirect contacts between Chinese Foreign Minister Wang Yi and U.S. Ambassador David Perdue, as well as a Track II dialogue in Beijing involving Chinese Vice President Han Zheng and a U.S. delegation.

In the upcoming phase of negotiations, Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick, and U.S. Trade Representative Jamieson Greer will represent the U.S. They will engage in discussions with their Chinese counterparts, including Vice Premier He Lifeng. The inclusion of Lutnick, who is in charge of U.S. export controls, suggests that future talks will likely extend beyond tariffs to include national-security policy in high-tech sectors.

China's official report confirmed the call and highlighted Xi's desire for the U.S. to eliminate "negative" trade measures, including export restrictions and visa limitations. Xi also urged the U.S. to approach the Taiwan issue with caution. However, Beijing did not publicly acknowledge the discussion on rare earths in its summary of the conversation.

Xi's decision to participate directly in the call, which he had previously resisted, is widely interpreted as a sign that Beijing is open to re-engagement. Chinese state media reported that the call was initiated at Trump's request.

Trump, on his part, reassured that Chinese students remain welcome in the U.S. He stated, "Chinese students are comingno problem. Its our honor to have them, frankly."

The market responded positively to the news of the call, with the S&P 500 reversing earlier losses and the dollar strengthening after Trump posted his remarks online.

This renewed engagement between the U.S. and China comes as the Trump administration prepares for crucial trade talks with Europe. German Chancellor Friedrich Merz is scheduled to meet with Trump at the White House on Friday, with the 90-day pause on transatlantic tariffs set to expire on July 9.

The successful revival of negotiations with Beijing may bolster Trump's position in these upcoming discussions. The President remains confident that his strategy of using tariffs to secure concessions has yielded positive results. "Were going to solve a lot of problems together," Trump declared. "And were going to do it very soon.