Rumors swirl about possible Trump-Xi call
There’s a lot of chatter about a possible phone call between Xi Jinping and US President Donald Trump.
On Monday, the White House said that the two leaders would “likely” speak this week.
- We’ve learned to be skeptical about the Trump administration’s claims about US-China dialogue, but there might be something to this.
When asked about the possibility of a call, a Chinese foreign ministry spokesperson said that he had “no information to offer," rather than issuing a flat denial (MoFA 1).
The rumors come as US frustration grows over China’s alleged foot-dragging in approving rare earth element (REE) export licenses.
- Politico quoted insider sources as saying the Trump administration is facing “a lot of pressure” due to Chinese REE restrictions and that Trump “is obsessed with having a call with Xi” to resolve the impasse.
Meanwhile in Beijing: Foreign Minister Wang Yi met with the new US ambassador and Trump ally David Perdue on Tuesday.
- Wang said US-China ties were at a “critical juncture,” telling Perdue that “equality and mutual respect are the foundation for engagement, and dialogue and cooperation are the only right choices” (Global Times).
Get smart: If Beijing lets Trump twist in the wind over REEs, he could lash out and torpedo the fragile Geneva trade truce.
- A Trump-Xi call could allow both leaders to say their piece and potentially lower the temperature.
- But the clear panic that Beijing’s REE restrictions have sown in Washington means that they’ll remain China’s ace in the hole – ready to be played when trade tensions inevitably flare up again.