Chinese President Xi Jinping spoke by phone with US President Donald Trump regarding the sensitive issue of the self-governing island of Taiwan, according to a report from the Chinese state news agency Xinhua.
Xi reportedly informed Trump that the return of Taiwan to China constitutes a key component of the international order established following World War II. As of the report, neither the White House nor the Chinese embassy in Washington had immediately responded to requests for comment regarding the content of the high-level call.
Call Comes Amid Complex US-China Relations
The discussion comes at a complex time for the world’s two largest economies:
- Trade Truce: The call follows a significant trade truce reached last month, which involved Washington lowering tariffs on Chinese goods and Beijing agreeing to remove certain restrictions on the export of rare earths.
- Soybean Purchases: President Trump mentioned on November 14 that the US was in talks with the Chinese government about increasing purchases of American soybeans, a key provision of the trade agreement. Trump stated they were “in the process of doing it,” and that China would be “doing a lot of soybean purchase.”
- Regional Tensions: Despite the trade truce, relations remain strained by fresh tensions between China and Japan, a top US regional ally.
Negotiations on Rare Earths and AI Chips
While the overall trade truce is in place, key details regarding high-tech and critical materials remain under negotiation:
- Rare Earths: The US and China are still negotiating the specifics of how Beijing will free up sales of rare earths and critical minerals, which are vital for manufacturing high-tech electronics, autos, and robotics. The two nations aim to agree on terms for “general licenses” that China pledged to offer for US-bound exports by month’s end. This is occurring even though the US already moved to roll back tariffs.
- AI Chips: The Trump administration is once again weighing whether to permit the sale of more advanced artificial intelligence (AI) chips to Beijing. Some advisors have warned that such a sale risks ceding the US’s competitive advantage in emerging technology. Commerce Secretary Howard Lutnick noted that this kind of decision sits directly on President Trump’s desk, stating, “He will decide whether we go forward with that or not.”
The wide-ranging discussion between the two leaders highlights the enduring geopolitical and economic challenges that persist between Washington and Beijing.