- Trump and Xi described their trade-focused call as positive, highlighting progress on rare earths and other complex issues.
- Both sides signaled intentions for further meetings between trade teams, though formal approval of the deal remains pending.
- Markets responded favorably, but skepticism persists about the durability of the agreement without a Trump-Xi summit.
A Step Forward, But Key Hurdles Remain
Former President Donald Trump and Chinese President Xi Jinping held a lengthy discussion centered on trade, with both sides characterizing the talks as constructive. According to sources familiar with the matter, the conversation touched on the implementation of a recently agreed trade framework, including progress on rare earth products—a critical input for high-tech and clean energy industries.
While the deal has been described as "done," it still requires formal approval from both leaders, and many substantive issues remain unresolved. Trump reaffirmed the U.S. commitment to the one-China policy during the call, a move likely aimed at easing tensions over Taiwan. Both leaders also expressed interest in reciprocal visits, though no specific dates were confirmed.
Market Reaction and Next Steps
U.S. equities edged higher following the news, reflecting cautious optimism among investors. However, analysts warn that without a high-level summit between Trump and Xi, the agreement may lack staying power. "Unless we get a Trump-Xi meeting, I don’t see that we can write an agreement that will stand," noted one trade expert, echoing broader skepticism about the deal's durability.
Further meetings between U.S. and Chinese trade representatives are expected in the coming weeks, with both sides aiming to formalize the framework. The talks come amid years of cyclical trade tensions, and observers are watching closely to see if this latest development marks a genuine de-escalation or merely another temporary truce.