Trump and Xi Renew Trade Talks Amid Rare Earth Mineral Disputes
ICARO Media Group
**Trump and Xi Restart Trade Negotiations Amid Rising Tensions**
China and the United States have agreed to rekindle trade talks in an attempt to resolve ongoing disputes over tariffs and the supply of vital rare earth minerals. The decision follows a phone conversation on Thursday between President Trump and Chinese leader Xi Jinping, which Trump described as “very positive.”
President Trump, in a post on Truth Social, highlighted that the conversation with Xi Jinping focused solely on trade issues. These have been a significant point of contention, particularly the export of critical minerals from China to the U.S. Trump hinted at a resolution regarding these issues but refrained from providing specific details. Ahead, trade representatives from both nations are set to meet soon to continue discussions, though the location remains unspecified.
Chinese state media reported that Xi Jinping emphasized the need for increased cooperation, respect, and consultation between the two nations during their conversation. Xi extended an invitation for Trump to visit China and called for the U.S. to withdraw negative measures against China. He also underscored the importance of enhancing exchanges across various fields, including diplomacy, economics, and the military.
Thursday marked the first conversation between Trump and Xi since January 17, just days before Trump's inauguration. The call comes after a period of escalating tensions between the two economic giants, which had somewhat eased following a tentative truce in Geneva last month. At that meeting, both sides agreed to roll back tariffs and reduce trade barriers.
Nonetheless, recent developments have seen each country accuse the other of violating the Geneva agreement. China's restrictions on rare earth mineral exports, crucial for U.S. industries such as car and airplane manufacturing and defense, have particularly heightened tensions. The U.S. responded by halting exports of American technology and industrial products to China and proposing stricter visa controls on Chinese students.
Economies on both sides have felt the strain, with American factories facing potential standstills due to mineral shortages. Both leaders appear aware of the high stakes, with Trump admitting the complexities involved but asserting that their discussion had led to a positive outcome.
As negotiators brace for the upcoming talks, experts like Wendy Cutler from the Asia Society Policy Institute caution that ongoing misunderstandings and a fundamental lack of trust will present significant challenges. The outcomes of these renewed discussions will be eagerly watched, given their potential impact on the global economy.