Trump says he had a ‘good call’ with China’s Xi, discussing issues like trade, TikTok

WASHINGTON – US President-elect Donald Trump said he had a good discussion on Jan 17 with Chinese President Xi Jinping on a number of issues, including trade, fentanyl and TikTok.

“The call was a very good one for both China and the USA. It is my expectation that we will solve many problems together, and starting immediately. We discussed balancing trade, fentanyl, TikTok, and many other subjects,” Trump wrote in a post on his social media platform Truth Social.

“President Xi and I will do everything possible to make the world more peaceful and safe!” he said.

Earlier, the Chinese state news agency Xinhua reported that Mr Xi and Trump spoke by phone, but did not provide any further details.

Trump said on Jan 6 that he and Mr Xi have been communicating through representatives, expressing optimism about their relationship.

The call came hours after China said Mr Xi will skip Trump’s inauguration on Jan 20 but will send Vice-President Han Zheng instead.

“This is certainly an important gesture from both sides to rebuild their working relationship, and it also suggests that the two sides want to pursue constructive engagement down the road,” said Dr Wu Xinbo, director at Fudan University’s Centre for American Studies in Shanghai.

Where things stand

While Trump has praised Mr Xi as a powerful and “brilliant” leader, he has pledged to hit China

with massive tariffs

of around 60 per cent on a wide range of goods.

During his first administration, Trump started a disruptive trade war with China that reshaped the global economy.

Combined with the Covid-19 pandemic, Trump’s trade agenda also helped reorder global supply chains – and was largely continued by the Biden administration, which used export curbs to try denying China access to cutting-edge technology.

Although it is less clear which direction Trump will take the China relationship this time, his new administration has some prominent China hawks, including Mr Marco Rubio, Trump’s choice to lead the US State Department.

His pick for Treasury Secretary, Mr Scott Bessent, on Jan 16 described China as the most imbalanced economy globally, where the military is put first and where the authorities are trying to export cheap goods to the rest of the world as a way to keep growth afloat.

While Trump comes into office with an economy outperforming that of most rivals, with a surprisingly strong consumption and labour market along with mellowing inflation, Mr Xi is facing a tougher road ahead.

China’s economy

grew more than expected

in 2024 at 5 per cent, official data showed this week, an expansion mainly powered by trade, while consumption growth languished, property investment contracted by the most on record and deflation persisted for a second straight year.

China’s currency has dropped more than 5 per cent against the US dollar since a late September high in the face of Trump’s tariff threats.

Outgoing Treasury Secretary Janet Yellen has been warning that China is exporting its industrial “overcapacity”, which she said threatens industries and jobs globally.

Mr Bessent, speaking at his confirmation hearing on Jan 16, said China was attempting to export its way out of what he called “a severe recession, if not depression”. REUTERS, BLOOMBERG