Trump and Xi Reopen Lines as Trade Truce Holds, But Taiwan Remains a Flashpoint

What Happened

President Trump and Chinese President Xi Jinping spoke by phone this week. It was their first direct contact since their last in-person meeting in South Korea. The call came as both countries attempt to stabilize relations following a fragile trade truce reached in October.

According to Chinese state media, the conversation covered several fronts. Those included agricultural trade, export policy, semiconductor technology, and international security. Xi reaffirmed China’s view that Taiwan’s ‘return’ is part of the global post–World War II order. He also referenced historical U.S.-China cooperation during the Second World War to frame a renewed era of dialogue.

China has resumed large-scale purchases of American soybeans. It has also started easing restrictions on the export of rare earth materials. Both actions are key components of the trade agreement. The White House confirmed the call but kept its summary brief. It did not directly address the Taiwan remarks or the status of broader policy talks.

Why It Matters

The call suggests a deliberate effort to maintain momentum following the October agreement. That agreement paused the escalation of tariffs and economic retaliation. The truce included a reduction in Chinese restrictions on key American exports. It also included a commitment from Beijing to re-engage with U.S. producers in agriculture and tech.

The timing of the call is important. Both sides are watching each other for signs of follow-through. Early signs point to limited cooperation. The resumption of soybean imports provides immediate relief to American farmers. The partial lifting of rare-earth export controls signals that China may be willing to meet some obligations.

Major flashpoints remain unresolved. Xi’s comments on Taiwan served as a reminder that Beijing still sees unification as inevitable and non-negotiable. U.S. officials remain concerned that continued pressure on Taiwan could trigger military or economic responses. Those responses could come from Washington or from allies such as Japan.

There is also skepticism in U.S. policy circles about how long China will keep its end of the trade bargain. Past agreements have often been followed by backtracking or selective enforcement. The administration has not ruled out reimposing tariffs if commitments are not honored.

How It Affects You

For American farmers, particularly in the Midwest, China’s renewed soybean purchases represent a long-awaited lifeline. After years of volatility, more stable export demand could help lift prices and restore predictability to a key sector of the economy.

For consumers, the easing of rare earth restrictions could help stabilize supply chains for smartphones and electric vehicles. Many U.S. industries rely on rare-earth materials that are difficult to source outside China. Any cooperation in that area helps reduce risk and volatility.

The Taiwan issue continues to cast a long shadow. If tensions rise once again, the resulting instability in East Asia could disrupt shipping routes. It could raise the cost of goods or trigger financial volatility. The call between Trump and Xi indicates a step toward diplomacy. It also reminds the world how fragile the peace between the two superpowers can be.

What happens next will depend on whether the commitments made in October are fully carried out. It will also depend on whether both sides can manage rising tensions in the months ahead without undoing the progress they have made.