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No more questions on rare earths now: Trump after 'very good' call with Xi

After what he described as a "very good" 90-minute call with Xi Jinping, Trump says US-China trade talks will resume soon with rare earth issues resolved

Xi Jinping, Donald Trump

Donald Trump noted that Xi had extended a personal invitation for him and First Lady Melania Trump to visit China, which he accepted. | File Photo

Prateek Shukla New Delhi

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US President Donald Trump held a 90-minute phone call on June 5 with his Chinese counterpart Xi Jinping, focusing largely on trade issues, including rare earth products. Trump, who initiated the call, described it as “very good”, adding that it concluded on a positive note for both countries.
 
According to Trump’s post on Truth Social, the leaders discussed “some of the intricacies of our recently made, and agreed to, Trade Deal.” He wrote: “The call lasted approximately one and a half hours, and resulted in a very positive conclusion for both Countries.”
 
Trump clarified that the conversation centred “almost entirely on TRADE” and added, “Nothing was discussed concerning Russia/Ukraine, or Iran.”
 
 
China’s state news agency Xinhua confirmed that Trump initiated the call, although it did not provide specific details of the discussion. The White House is yet to issue an official statement on the call.

Progress on rare earths and tariffs

A major highlight from the call was the apparent resolution of issues related to the complexity of rare earth products. Trump stated: “There should no longer be any questions respecting the complexity of Rare Earth products.”
 
This comes at a time when trade tensions over critical minerals—essential to high-tech manufacturing—have persisted despite a temporary truce reached on May 12. Under that agreement, Trump reduced US tariffs on Chinese goods from 145 per cent to 30 per cent for 90 days, while China lowered its taxes on US imports from 125 per cent to 10 per cent.
 
Trump also announced that official delegations from both countries would soon meet to continue trade talks, although the location is yet to be decided. “Our respective teams will be meeting shortly at a location to be determined,” he wrote.
 
The US delegation will include Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick, and US Trade Representative Ambassador Jamieson Greer.

Exchange of invitations

Trump also announced that Xi had extended a personal invitation for him and First Lady Melania Trump to visit China, which he has accepted. “President Xi graciously invited the First Lady and me to visit China, and I reciprocated,” he wrote.
 
“As Presidents of two Great Nations, this is something that we both look forward to doing.” China’s foreign ministry confirmed the call, and Xinhua reported that President Xi urged Trump to reverse “negative measures” taken by the US. Xi also likened the US-China relationship to steering a “big ship”, saying the two sides must eliminate “all kinds of interference and even sabotage.”
 
Xinhua also reported that Trump reassured Xi that Chinese students were welcome in the US, despite recent visa restrictions announced by his administration.

Recent strains in bilateral ties

This was the first direct conversation between the two leaders since Trump returned to the White House over four months ago. Just a day before the call, Trump had expressed frustration over stalled negotiations, posting: “I like President XI of China, always have, and always will, but he is VERY TOUGH, AND EXTREMELY HARD TO MAKE A DEAL WITH!!!”
 
Talks between the two nations had reached a deadlock after the May 12 agreement. A key hurdle has been the ongoing dispute over technology access and critical exports. The US has accused China of withholding critical minerals, while Beijing has objected to American export restrictions on advanced semiconductors and visa limits for Chinese students.
 
Even with talks resuming, deeper economic differences remain. Trump is aiming to reduce America’s dependence on Chinese manufacturing and revitalise domestic industry. Meanwhile, China seeks to strengthen its capabilities in sectors like artificial intelligence and electric vehicles to bolster its future economic standing.
 
In 2024, the US ran a trade deficit of $295 billion with China, according to Census Bureau data. While China has grown into a significant economic and geopolitical force through manufacturing, its economy has recently slowed due to a property crisis and the lingering effects of pandemic-related lockdowns.
 
Trump and Xi last spoke in January, just days before Trump’s second inauguration. That discussion also focused on trade, and Trump had pressed Xi to take stronger action against the trafficking of fentanyl into the US.

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First Published: Jun 05 2025 | 9:49 PM IST

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