• Trump and Xi engaged in their first phone call since trade tensions escalated over tariffs.
• The dialogue aimed to de-escalate a fragile truce in place since a May agreement.
• Trump described the call as resulting in a “very positive conclusion” for both countries.
• Concerns remain about compliance with tariff agreements and exports of critical minerals.
• Both leaders extended invitations for future visits to their respective countries.

On Thursday, US President Donald Trump and Chinese President Xi Jinping held a long-awaited phone call that aimed to alleviate ongoing trade tensions between the two nations. The conversation marked the first contact between the leaders since the escalation of tariff disputes, during which Trump described the discussion as resulting in a “very positive conclusion” for both countries, according to SCMP.

The call came after accusations arose from both sides over violations of a truce agreed upon at a meeting in Geneva in May. Trump stated that the conversation focused almost entirely on trade, addressing issues related to rare earth minerals vital for technology and defense, highlighting the increasing complexity of global trade dynamics, as reported by Bangkok Post and India Times.

During the call, both leaders extended mutual invitations for visits to each other's countries, with Trump mentioning that Xi graciously invited him and First Lady Melania Trump to China. Trump reciprocated the invitation, suggesting a willingness to foster better relations moving forward, according to AA and Le Monde.

However, despite Trump's optimistic tone, the outcomes of this call remain uncertain, especially regarding compliance with the previous agreements. Both sides have traded blame for recent escalations, especially concerning China's critical mineral exports and the US's strict regulations on student visas, signifying that while talks were constructive, significant hurdles remain, as highlighted by Channel News Asia and Dawn.

Investor sentiment remains cautious following the phone call, with many manufacturers in China expressing skepticism about the progress reported by both leaders. Concerns regarding the volatility of US trade policy contribute to their hesitance to make long-term business decisions. Executives suggest that consistent communication is critical to providing stability in trade relations, underscoring the need for further dialogue in upcoming negotiations, according to SCMP and SCMP.