US President Donald Trump is scheduled to hold trade talks with Chinese President Xi Jinping on Friday, White House officials said the meeting is likely to be “probably,” but suspicions remain that it is the turning point Trump hopes for.
A source familiar with trade talks said Trump was “obsessed” with making direct calls with XI. Trump believes that deep trade disputes between the two biggest economies in the world can be resolved one-on-one with XI. But that approach ignores the challenges the US faces when trying to force China to fundamentally restructure its roughly $600 billion in trade relations. It also raises the question of what Trump’s ultimate goal is in this trade war.
Sources said China’s important mineral export bloc to the US has led to increased pressure on Washington. China is said to be taking a strict stance on exporting rare earth elements and magnetism, which are used in many fields, from the production of automobiles and electronics to the defense industry. The source said, “It’s clear that XI is not very keen on exporting these substances to the US, but it’s likely that he’ll get a phone call to listen to Trump.”
A former Trump official close to the White House said he believes that direct meetings between leaders will cut through the noise in the process and reach the heart of the issue.
*This is not investment advice.
