Xi Jinping and Trump’s Phone Call Release Positive Signals: Calibrating the Course of China-US Relations and Advancing Economic and Trade Cooperation
On the evening of June 5, 2025, Chinese President Xi Jinping held a telephone conversation with U.S. President Donald Trump at the latter’s request. The two leaders engaged in in-depth discussions on China-U.S. relations, economic and trade cooperation, and the Taiwan issue, among other core topics. This exchange not only injected new momentum into bilateral ties but also sent a clear message to the international community about resolving differences through dialogue.
Steadying the Ship of China-U.S. Relations
President Xi emphasized that stabilizing China-U.S. relations, likened to “steering and setting the course of a great vessel,” requires joint efforts to eliminate interference and disruptions. He highly commended the recent Geneva talks between economic and trade negotiators from both sides, calling them “a crucial step toward resolving economic and trade issues through dialogue” and noting their widespread welcome among domestic and international stakeholders. Xi reiterated China’s commitment to equality, mutual respect, and mutual benefit in pursuing win-win outcomes, while urging the U.S. to revoke negative measures against China and fully implement the Geneva consensus .
Trump’s Reaffirmation of Cooperation
Trump acknowledged the “great importance” of China-U.S. relations, reaffirmed the U.S. commitment to the one-China policy, and expressed satisfaction with the Geneva talks. He pledged to work with China to implement the agreements reached and highlighted his openness to welcoming Chinese students to study in the U.S. .
Economic and Trade Progress
The conversation underscored the critical role of the China-U.S. economic and trade consultation mechanism. Following the Geneva talks in May, the U.S. has lifted 91% of tariffs on Chinese goods, while China has adjusted its countermeasures, significantly reducing trade barriers. Both sides agreed to establish regularized communication channels for future consultations on tariffs, supply chains, and other key issues in China, the U.S., or neutral venues. Trump revealed that the U.S. trade team, led by Treasury Secretary Benson, Commerce Secretary Lutnick, and Trade Representative Greer, would convene soon to address complex topics like rare earths. Analysts view this “pragmatic yet reciprocal” approach as a breakthrough in breaking the deadlock and stabilizing global markets .
Taiwan: A Red Line
Xi stressed that Taiwan is a “red line” in China-U.S. relations and warned against actions by “Taiwan independence” elements that could provoke confrontation. While Trump did not explicitly respond, his reaffirmation of the one-China policy was seen as indirect acknowledgment of China’s stance .
Expanding Multifaceted Exchanges
Beyond economics, the leaders agreed to enhance diplomatic, military, and law enforcement exchanges to build trust and reduce miscalculations. Trump also signaled a relaxation of restrictions on people-to-people exchanges, including academic and cultural programs.
A Pragmatic Start to Trump’s Second Term
This call marks a positive shift in China-U.S. relations amid Trump’s second-term inauguration. However, structural challenges and strategic competition persist. China is expected to maintain strategic focus, bolstering domestic innovation and openness while leveraging partnerships like BRICS to counterbalance U.S. pressures.
Global Implications
The dialogue provides a foundation for recalibrating bilateral ties and injects confidence into global markets. Whether the two nations can balance competition and cooperation will profoundly shape the international landscape.
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