• Former President Trump and Chinese President Xi Jinping held a high-profile call, resulting in reciprocal invitations for a state visit.
  • Trump publicly reaffirmed support for allowing Chinese students to study in the United States, signaling a reversal of previous restrictions.
  • Both leaders committed to the "one-China policy" and discussed implementing a new trade agreement focused on rare earth products.

In a significant move that could recalibrate US-China relations, former President Donald Trump and Chinese President Xi Jinping held a lengthy phone conversation on June 5th, primarily focused on the implementation of a new bilateral trade agreement. The call, described by people familiar with the matter as positive and constructive, resulted in a reciprocal invitation for Trump to visit China, which he has accepted in principle.

A key takeaway from the public statements was Trump's firm recommitment to allowing Chinese students to study in the US, a stark reversal from the immigration and visa restrictions that characterized much of the previous period of heightened tensions. "We are going to allow China students to come in," Trump stated, emphasizing the value of such educational exchanges in fostering bilateral understanding. This shift is likely to be welcomed by US academic institutions and business stakeholders who have long relied on the economic and intellectual contributions of Chinese students.

The discussion also covered sensitive geopolitical ground, with both sides agreeing to honor the "one-China policy." According to the readout, President Xi cautioned the US against involvement with Taiwan separatism, a core Chinese diplomatic interest. The call follows a recent meeting in Geneva that produced a new trade deal, with a particular focus on cooperation around rare earths—materials essential for technology and defense industries. Efforts to solidify this agreement are ongoing, with top economic officials from both nations expected to meet soon to work out further details.

Market reactions in Asian trading sessions were cautiously optimistic, reflecting hopes for greater trade stability and new commercial opportunities. The mutual invitations and easing of rhetoric suggest a deliberate effort to manage differences diplomatically, though experts caution that the durability of these developments hinges on continued negotiations around other sensitive topics, including technology transfer. A spokesperson for Trump did not immediately respond to a request for further comment on the timing of a potential visit.