Trump and Xi Potential Call Amidst Unraveling Trade Deal and Geopolitical Tensions

Potential Trump-Xi Call This Week

• 📞 A senior White House official indicated a conversation between President Trump and Chinese leader Xi Jinping is likely to occur this week, though not on the current day.
• 🤝 The call is seen as crucial, as final agreements between the two countries reportedly require the approval of these two leaders.

Unraveling Trade Deal and Non-Tariff Barriers

• 📉 The deputy treasury secretary stated that China is slow-walking the export of critical minerals, specifically magnets, which were part of a previously struck deal.
• 🚧 This action is leading back to non-tariff barriers, an issue the US has been addressing with China for years.
• 📈 The administration projects optimism about the upcoming leaders' call and suggests trade deals are imminent.

Geopolitical Tensions and China's Reaction

• ⚠️ Beyond trade, geopolitical concerns are simmering, with China accusing the US Defense Secretary of a "cold war mentality" after labeling China a threat.
• 🗣️ Chinese officials have remained silent on the potential call, unlike their US counterparts who often appear on Sunday talk shows.
• 🚫 President Xi Jinping reportedly dislikes unscripted meetings, and public tensions make it harder for him to engage in such calls without appearing to cave to US demands.

Escalating Cycle of Action and Reaction

• 🔄 The US and China appear to be entering a cycle of action and reaction, escalating tensions between the two nations.
• 🚫 China's Commerce Ministry issued a strong statement calling US accusations of violating the Geneva Accord