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Xi and Trump Reconnect: Charting a New Course for China-U.S. Trade Ties

In a landmark phone call on Thursday, Chinese President Xi Jinping and U.S. President Donald Trump hit the reset button on strained China-U.S. relations. At Trump’s request, the two leaders focused their conversation on trade tensions and agreed that dialogue is indispensable for managing their differences.

Since the trade war began in February, this was the first direct exchange between the world’s top two economies. Both sides signaled a "very positive conclusion," with Trump taking to social media to highlight progress and Xi calling for both nations to steer clear of disruptions that could derail cooperation.

China and the U.S. together account for nearly half of the world’s GDP, underscoring their deep economic interdependence. Bilateral trade in goods has surged from less than $2.5 billion in 1979 to $688.28 billion last year—a 275-fold increase that powers global supply chains and impacts markets from Silicon Valley startups to manufacturers in the Pearl River Delta.

“Differences are inevitable,” Xi told Trump, urging both sides to use existing economic and trade consultation mechanisms. He emphasized equality, mutual respect, and a win-win mindset as the blueprint for future talks. Last month’s Geneva meeting on economics and trade laid important groundwork by creating a formal platform for ongoing dialogue.

For businesses, tech innovators, and policymakers watching closely, this renewed commitment to communication could ease uncertainty and open doors for new partnerships. As global citizens, we’re reminded that even at the highest levels, conversation remains the most powerful tool to navigate complexity and keep the global economy on course.

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