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Investor's Crypto Daily > Blog > Headlines > Economy > Economic News > What was discussed between Trump and China’s Xi during their very good’ telephone call?
Economic News

What was discussed between Trump and China’s Xi during their very good’ telephone call?

Last updated: January 17, 2025 7:00 pm
By Chad McAuley 6 Min Read
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Donald Trump, US President-elect announced via his Truth Social social media platform that he and Chinese President Xi Jinping had a “very positive” telephone call ahead of Trump’s return to the White House the following week.

Contents
Trump-Xi telephone call: a positive toneXi will not attend Trump’s inaugurationTrump-Xi telephone call: Trade, Tariffs and TaiwanTrump’s Cabinet of China HawksElon Musk’s role in US-China relations

This was the first time the two leaders had spoken since Trump left office after his first tenure. They discussed global issues such as trade, the fentanyl crisis, and TikTok, the app that has been controversial.

Trump tweeted: “I spoke with Chairman Xi Jinping, the Chinese leader.”

I expect that we can solve a lot of problems together and start immediately.

He also emphasized that both countries could work together, saying, “President Xi will I do all we can to make this world more peaceful and secure!”

Trump-Xi telephone call: a positive tone

According to a report from China’s Foreign Ministry Xi echoed Trumps optimism. He stated that both leaders attach great importance to their mutual interactions and look forward to a successful start to US-China Relations during Trumps second term.

The call for a meeting comes as tensions between Washington and Beijing are rising, due to geopolitical issues and economic problems that continue straining ties between these two superpowers.

The US Supreme Court has cleared the way for the ban of TikTok (the China-based app that is owned by ByteDance) to go into effect Sunday, just hours after it was made.

TikTok lost its appeal. It argued the ban was in violation of the First Amendment.

Now, the future of this app is in doubt. This adds another level to US-China relationships.

Xi will not attend Trump’s inauguration

Xi has chosen to miss the inauguration in Washington DC scheduled on Monday, despite expressing his congratulations to Trump after his reelection.

Han Zheng, vice president of China’s government, will be the official representative.

Beijing is being cautious in its approach towards the Trump Administration.

Xi had earlier sent a congratulatory note to Trump, which included a warning about the benefits of collaboration and dangers of conflict.

Xi expressed his hope that the US and China would have a positive relationship under Trump’s second tenure.

Trump-Xi telephone call: Trade, Tariffs and Taiwan

Trump has expressed his willingness to work with China but his rhetoric remains firm on some issues.

Trump’s first term was shaped by his promise to raise tariffs against Chinese products.

As president-elect he reiterated that he would hold Beijing to account, and proposed a 10% tariff increase until China took significant measures to stop the flow of drugs into the US, such as fentanyl.

Taiwan was also a source of disagreement. Xi highlighted Beijing’s position regarding Taiwan during the phone call. He called it a “breakaway territory” and stressed that the unification of the mainland with Taiwan remains a top priority.

Trump’s rhetoric is different now than it was during his first presidential term.

He recently criticized Taiwan, accusing it of “stealing” American jobs in chip manufacturing and suggested the island nation contribute more towards US military protection.

Trump’s Cabinet of China Hawks

Trump’s Cabinet picks could indicate a more aggressive stance towards China.

The inclusion of prominent China critics such as Senator Marco Rubio (nominated to be secretary of state) and Pete Hegseth (tapped as defense secretary), who was formerly a Fox News anchor, indicates a team ready to take on Beijing from multiple angles.

Rubio has repeatedly called for tougher sanctions against China. Hegseth, meanwhile, warned about China’s desire to overtake the US as global leader.

Elon Musk’s role in US-China relations

Elon Musk is a special factor when it comes to US-China relations.

Musk maintains a close relationship with Beijing, despite the fact that Tesla manufactures more than 50% of its cars in China.

Trump’s approach of zero-sum is starkly opposed by his comments, which advocate a win-win dynamic between China and the US.

Musk’s frequent meetings and influence with Chinese officials give the bilateral relationship a new dimension.

The phone call between Trump and Xi as he prepares to take office underscores the delicate equilibrium of collaboration and conflict in US-China relationships.

Both leaders are optimistic, but deep differences exist on trade, Taiwan, technology and other issues.

In the coming weeks, we will see if this “very positive” call results in meaningful progress or if it sets up further tensions.

The global impact of this pivotal discussion is evident in its implications for trade, diplomacy and technology.

The world is watching to see how Trump’s second tenure will affect the US-China relationship in the future.

The post Trump’s’very positive’ call with China’s Xi? This post may change as new information becomes available.

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