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Yahoo
4 hours ago
- Business
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Trump–Xi call boosts Chinese president's tough man image — and may have handed him the upper hand in future talks
On June 5, U.S. President Donald Trump held a phone call with Chinese President Xi Jinping. It marked the first direct conversation between the two leaders since Trump began his second term — and the first since tensions sharply escalated in 2025's U.S.-China trade war. After the call, Trump was quick to frame it as a success for his administration, posting on social media that it led to 'a very positive conclusion for both Countries.' He later told reporters that Xi had agreed to resume exports of rare earth minerals and magnets to the U.S. — allaying the fears of the auto industry, which had previously warned that parts suppliers were facing severe and immediate risks to production. The presidential phone call also yielded an invitation for Trump and first lady Melania to visit China, an invitation that Trump reciprocated. But aside from the easing of some trade tension and surface-level niceties, the call conveyed subtle messages about an imbalance in the bilateral dispute. As an expert on U.S.-China relations, I believe these subtleties point to Xi having the upper hand in U.S.-China talks and also using Trump as a foil to burnish his own image as a strong leader at home and abroad. The Trump-Xi call should not distract from the fragile state of China-U.S. relations — and the willingness of Beijing to play its 'rare earth materials card.' Beijing suspended rare earth shipments to prominent American companies following the U.S. imposition of tariffs on China. Although China and U.S. delegations reached a 90-day tariff truce in Geneva on May 12, negotiations between the two countries remain ongoing. As many observers have noted, deep-rooted and structural differences — such as disputes over currency manipulation, export subsidies and other nontariff barriers — continue to cast a long shadow over the prospects of U.S-China trade talks. Under the terms of the Geneva deal, China agreed to suspend or lift its export ban on rare earths — something the U.S. accuses China of dragging its feet on. Beijing, in turn, accuses the U.S. of breaking the Geneva agreement first and blames Washington for rolling out a wave of discriminatory measures against China after the talks, including new export controls on artificial intelligence chips, a ban on selling electronic design automation software to Chinese companies, and plans to revoke visas for Chinese students. Trump's order banning American companies from using AI chips by China-based Huawei — issued just one day after the Geneva agreement on May 12 — was seen by many in Beijing as directly countering the spirit of the agreement. Indeed, it may well have prompted Beijing to delay the resumption of rare earth exports to the U.S. in the first place. Aside from the actual effect of the resumption of rare earth exports, Trump's apparent priority given to the issue signals to Beijing just how reliant the U.S. is on China in this regard — something that would not have gone unnoticed by Xi. Just one day before the June 5 call, Trump wrote on social media: 'I like President XI of China, always have, and always will, but he is VERY TOUGH, AND EXTREMELY HARD TO MAKE A DEAL WITH!!!' His conversation with the Chinese leader would have further reinforced Xi's tough image — not just for a Chinese audience, but for international observers as well. This was certainly encouraged by how China described the call. According to China's official statement, Xi 'took a phone call from U.S. President Donald J. Trump' – the subtle implication being that it was Trump who initiated the call. This framing promotes the idea that Xi holds the upper hand. The Chinese statement also highlighted that the Geneva talks were 'at the suggestion of the U.S. side,' implying that China did not back down in the face of Trump's trade pressure — and that it was Trump who ultimately blinked first. China's message is particularly significant given that, as the U.S.-China trade war intensified in April, Washington believed it could gain 'escalation dominance' by imposing tariffs on Chinese goods — perhaps underestimating China's ability to retaliate effectively and assuming Beijing would be eager to negotiate. Prior to the June 5 communication, Trump repeatedly expressed hope that Xi would call him, yet Xi never took the initiative. On April 22, Trump told Time magazine that Xi had phoned him — an assertion that Beijing quickly denied. Throughout the trade standoff, Xi refrained from initiating contact with Trump, and in the end, it was Trump who reached out. This undoubtedly enhanced Xi's image back home — and potentially undermined Trump's negotiating posture. The official Chinese statement following the talks noted: 'The Chinese side is sincere about this, and at the same time has its principles. The Chinese always honor and deliver what has been promised. Both sides should make good on the agreement reached in Geneva.' Those words appear aimed at signaling to the international community that it is the U.S. — not China — that failed to uphold its end of the Geneva agreement. The second-to-last paragraph of the Chinese statement on the phone call noted: 'President Trump said that he has great respect for President Xi, and the U.S.-China relationship is very important. The U.S. wants the Chinese economy to do very well. The U.S. and China working together can get a lot of great things done. The U.S. will honor the one-China policy. The meeting in Geneva was very successful, and produced a good deal. The U.S. will work with China to execute the deal. The U.S. loves to have Chinese students coming to study in America.' While much of this language may be standard diplomatic rhetoric, it clearly aims to box in Trump as the supplicant in the current dispute and implies that he is moving closer to China's positions, including key nontrade issues like U.S. visas for Chinese students. Aside from the optics or broader question of who is 'winning' the dispute, the Trump-Xi call has certainly eased some tensions on both sides — at least temporarily. For the U.S., concerns over rare earth supplies were alleviated. Since the call, it has been reported that China has issued temporary export licenses to companies that supply rare earth materials to America's three largest automakers. For China, Trump's remarks seemingly helped reduce anxiety over issues such as Taiwan and student visa restrictions. But given the deep and fundamental differences between the two countries on trade and economic matters — and recalling how trade negotiations repeatedly stalled and restarted during Trump's first term — there is good reason to believe that future talks could face similar setbacks. But what is clear now, especially compared with the trade war during Trump's first administration, is that Beijing appears better prepared and more skilled at leveraging its rare earth exports as a bargaining chip. In many ways, Trump faces the greater pressure in his handling of Xi. Should talks collapse, any resulting supply chain disruptions could lead to rising inflation, market volatility and economic woe for the U.S. — with the associated risks of political fallout ahead of the midterm elections. Xi will know this and, in rare earth materials, has an ace up his sleeve to pull out when needed. Indeed, Trump may find himself needing to reach out to Xi again in the future in an effort to revive troubled trade negotiations. But doing so would only reinforce Xi's image as the tougher and more dominant figure. This article is republished from The Conversation, a nonprofit, independent news organization bringing you facts and trustworthy analysis to help you make sense of our complex world. It was written by: Linggong Kong, Auburn University Read more: In trade war with the US, China holds a lot more cards than Trump may think − in fact, it might have a winning hand Trump's desire to 'un-unite' Russia and China is unlikely to work – in fact, it could well backfire In Trump's America, the shooting of a journalist is not a one-off. Press freedom itself is under attack Linggong Kong does not work for, consult, own shares in or receive funding from any company or organization that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.
Yahoo
02-06-2025
- Business
- Yahoo
U.S.-China tariff truce at risk of falling apart with both sides pointing fingers
The U.S-China trade truce is at risk of falling apart with both countries accusing the other of violating the agreement. NBC News' Christine Romans breaks it down. Politico White House and Foreign Affairs Correspondent Eli Stokols joins Katy Tur to share his analysis.
Yahoo
30-05-2025
- Business
- Yahoo
Watch These Boeing Price Levels After Stock Jumps to Highest Level in 15 Months
Boeing shares closed at their highest level since February 2024 following news that the company will resume delivering planes to China next month. The stock broke above a flag pattern in Thursday's trading session, setting the stage for a continuation move higher. Investors should watch key support levels on Boeing's chart around $199 and $187, while also monitoring resistance levels near $234 and $ (BA) shares closed at their highest level since February last year on news that the company will resume delivering planes to China next month. CEO Kelly Ortberg said that the country's airlines had indicated they would begin taking first deliveries in June, with the development coming after China earlier this month reportedly reversed a ruling barring its airlines from taking deliveries of Boeing planes. Sentiment likely received an added boost after Ortberg said Boeing plans to increase production of its top selling 737 Max jets to 42 per month in the near-term and 47 per month by the end of the year. Boeing shares have rebounded 62% from their early-April low and trade 18% higher since the start of the year through Thursday's close, lifted by growing optimism that the jet maker could become a beneficiary of a broader U.S-China trade deal. The stock was the top gainer in the Dow Jones Industrial Average on Thursday, rising more than 3% to around $208. Below, we take a closer look at Boeing's chart and apply technical analysis to identify price levels worth watching out for. Boeing shares broke out above the neckline of a double bottom earlier this month before consolidating in a flag, a chart pattern that signals a continuation of the stock's strong uptrend that has been in play since early April. Indeed, the shares broke out from the flag in Thursday's trading session, setting the stage for another move higher. However, it's worth pointing out that, while the relative strength index confirms bullish price momentum, the indicator also cautions overbought condition with a reading above the 70 threshold. Let's identify key support and resistance levels on Boeing's chart. The first lower level to watch sits around $199. This area would likely provide solid support near a horizontal line that connects the low of the flag pattern with multiple peaks and troughs on the chart extending back to the fourth quarter of 2023. A close below this key level could see the shares descend to $187. Investors may look for entry points in this location near the double bottom pattern's neckline, an area on the chart that may flip from prior resistance into future support. A continuation of the stock's recent bullish momentum could trigger a move toward $234, where the shares may encounter overhead selling pressure near a range of corresponding price action that followed a stock gap in January last year. Finally, buying above this level could see Boeing shares take off to the $265 region. Investors who bought at lower prices may decide to lock in profits in this area near a series of trading activity situated around the December 2023 swing high. The comments, opinions, and analyses expressed on Investopedia are for informational purposes only. Read our warranty and liability disclaimer for more info. As of the date this article was written, the author does not own any of the above securities. Read the original article on Investopedia Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Business Recorder
16-05-2025
- Business
- Business Recorder
Indian shares log weekly gains on ceasefire with Pakistan, US deal hopes
India's benchmark equity indexes posted a weekly rise as investors cheered a truce with Pakistan, trade talks with the United States and expectations of domestic interest rate cuts. The Nifty 50 rose 4.21% to 25,019.80 for the week and the BSE Sensex gained 3.62% to 82,330.59. On the day, the indexes fell about 0.2% each, dragged by a pullback in IT stocks. 'The announcement of a ceasefire between India and Pakistan eased worries of escalation of military tensions and triggered risk-on sentiment, while the U.S-China trade truce, progress in India-U.S. trade negotiations and cooling domestic inflation sustained the weekly gains,' said Aishvarya Dadheech, chief investment officer of Fident Asset Management. With foreign inflows likely to sustain, the outlook for Indian markets remains positive, said Dadheech. U.S. President Donald Trump said on Thursday that India has offered a trade deal with zero tariffs, driving markets higher. India's trade secretary said that trade talks with the U.S. are progressing well. Trade minister Piyush Goyal will lead an Indian delegation to advance negotiations. India's benchmarks inch higher as tech, metal stocks gain India's more domestically-focussed small-caps and mid-caps advanced 9.2% and 7.2% this week, led by defence stocks and post-results rallies in key constituents. 'The sharp resurgence in broader markets is a sign of things changing for good,' Fident Asset's Dadheech said. All 13 major sectors advanced from a week earlier. The IT index rose 5.8%, helped by easing recession worries in the world's largest economy. Metal shares jumped 9.3% to log their best week in four years, aided by weakness in the dollar. Interest rate-sensitive heavyweight financials and realty shares climbed 3.8% and 10.8% after data showed retail inflation fell to a near six-year low. India's no. 2 telecom operator Bharti Airtel declined 2.9% on the day after a $1 billion stake sale by large shareholder Singapore Telecommunications.
Business Recorder
15-05-2025
- Business
- Business Recorder
Gulf markets lacklustre as global stocks rally loses steam
Most Gulf stocks were unchanged early on Thursday, as oil prices slid and broader Asian stocks fell after enthusiasm from easing trade tensions began to fade and investors waited for further cues. Oil prices slid on expectations of a potential U.S.-Iran nuclear deal, with Brent crude futures and U.S. crude falling more than 2% each. Global stocks earlier in the week had rejoiced after U.S-China trade war truce but the rally lost steam as investors paused to take stock and weigh its implications on the economy. Dubai's main share index was the only market in the region that chose a definite direction, rising up 0.3%. Most Gulf bourses settle flat, oil prices fall Saudi Arabia's benchmark stock index was flat by 0706 GMT. Meanwhile, Saudi Aramco said on Wednesday it had signed 34 preliminary deals with major U.S. companies, potentially worth up to $90 billion. Shares of Aramco were down 0.4% in early trade on Thursday. U.S. President Donald Trump signed a host of economic and bilateral cooperation agreements with Saudi Arabia earlier this week to kick off a four-day Middle East trip with a focus on dealmaking with a key Mideast ally. In Abu Dhabi, the benchmark index was down 0.02%, while Qatar's benchmark stock index was down 0.06%.
