Navigating Uncertainty: Trump's Push for Direct Call with Xi Amid Stalled Trade Talks
ICARO Media Group
### Trump's Proposed Call with Xi Raises Doubts Amid Stalled Trade Talks
President Donald Trump remains optimistic that a direct call with Chinese leader Xi Jinping will rejuvenate the deteriorating trade negotiations between their nations. A potential conversation is deemed "likely" by the White House this week, but skepticism abounds regarding its potential efficacy in yielding the breakthrough Trump desires.
Trump is reportedly adamant that a personal discussion with Xi can bridge the substantial gaps that have emerged in the trade relationship between the United States and China, which is valued at nearly $600 billion. There is a belief within the Trump administration that this one-on-one interaction could overcome the deep-rooted issues straining bilateral commerce. However, this stance overlooks the complexities and entrenched positions that define the current trade impasse.
The situation is complicated by China's stance on critical minerals, essential for various industries from automotive to electronics. A source close to the trade negotiations disclosed that China remains resolute in restricting exports of rare earth elements to the U.S. This source, who wished to remain anonymous, highlighted the considerable pressure the Trump administration faces due to these restrictions. They noted that while Trump may have some leverage, it is uncertain when he will exercise maximum pressure on Beijing.
Despite Trump's enthusiasm for a direct call to cut through ongoing noise, experts question Beijing's willingness to engage. Daniel Russel, a former assistant secretary of State in the Obama administration, suggests that Trump's eagerness may signal desperation, thus strengthening China's resolve. Rush Doshi, a former National Security Council deputy senior director, added that China's perception of Trump as unpredictable increases the reputational risks for Xi and dissuades Beijing from engaging in potentially embarrassing or unpredictable diplomatic encounters.
Public statements by White House officials, including Press Secretary Karoline Leavitt and National Economic Council Director Kevin Hassett, have reinforced the likelihood of an imminent call between the leaders. However, there remains no definitive schedule. When queried on the matter, China's Foreign Ministry spokesperson provided no concrete information, and the Chinese Embassy in Washington has yet to respond. Tensions have escalated further with the Chinese Commerce Ministry accusing the U.S. of instigating new economic and trade disputes.
The uncertainty follows a tentative agreement reached in early May by Treasury Secretary Scott Bessent and U.S. Trade Representative Jamieson Greer to de-escalate the trade war. The deal reduced tariffs and committed both nations to further dialogue, although progress has since stalled. Miscommunications and unmet expectations have hindered the restart of critical mineral shipments and other trade activities.
Automotive manufacturers have expressed concern over the looming shortages of rare earth magnets, vital for vehicle production. The fentanyl issue also remains unresolved, although China has made proposals that have yet to receive a substantive response from the U.S. This ongoing mistrust further complicates the resumption of productive negotiations.
The trade landscape has also been strained by U.S. actions targeting Chinese sectors like semiconductors and restricting Chinese students' studies in America. The U.S. strategy of issuing export warnings, particularly against using chips from Huawei, has caught Chinese officials off-guard and aggravated tensions.
Given these complexities, former officials and experts argue that Trump's strategy might oversimplify the diplomatic processes necessary for significant trade negotiations. Direct leader-level talks might risk overshadowing the meticulous groundwork required for a comprehensive agreement. Nonetheless, supporters within Trump's camp argue that there is little downside in attempting the call, viewing it as either a step towards progress or evidence of U.S. efforts in the face of Chinese intransigence.