A positive icebreaker phone call
In a significant diplomatic move, former US President Donald Trump, during his presidency, held a “long and in-depth” phone call with his Chinese counterpart Xi Jinping, described as a serious attempt to build trust and resolve outstanding differences between the world’s two largest economies. According to Chinese state media at the time, President Xi Jinping assured Trump that resolving contentious issues was possible in an atmosphere of mutual respect, stating that “by addressing issues one by one and continuing to build mutual trust, we can find the right path for harmony between our two countries.” For his part, Trump described the call as “excellent,” emphasizing that his personal relationship with the Chinese president was “excellent,” sending a message of optimism to global markets, which had been anticipating any breakthrough in the strained relations.
Background to trade tensions between the two countries
This call came at the height of the trade war ignited by the Trump administration, with the United States imposing punitive tariffs on billions of dollars' worth of Chinese goods. This policy targeted what Washington considered unfair trade practices by Beijing, including the massive US trade deficit with China, intellectual property theft, and the forced transfer of technology from American companies. China retaliated with similar measures, imposing tariffs on a wide range of American products, most notably agricultural goods such as soybeans, directly impacting US farmers. This tit-for-tat escalation has raised global concerns about slowing economic growth and disrupting international supply chains.
The importance of the call and its global impact
The significance of this phone call extended far beyond bilateral relations, casting a long shadow over the global economic landscape. For the United States and China, it represented an opportunity to de-escalate tensions that had damaged vital sectors in both countries. Global financial markets reacted instantly to any news regarding trade talks, and positive reports about the call led to a rally in global stocks. Internationally, this rapprochement was seen as a necessary step to avert a full-blown trade war that could destabilize the global economy. This call paved the way for subsequent negotiations between the two countries' delegations and summit meetings between Trump and Xi, which at various stages resulted in trade truces and partial agreements aimed at rebalancing trade relations between the two superpowers.
