US President Donald Trump is set to hold trade talks with Chinese President Xi Jinping on Friday, according to White House officials, who said the meeting was “likely” to take place, but doubts remain that the meeting will be the turning point Trump hopes it will be.
A source familiar with the trade talks said Trump is “obsessed” with having a direct phone call with Xi. Trump believes he can resolve the deep trade disputes between the world’s two largest economies one-on-one with Xi. But that approach ignores the challenges the U.S. faces in trying to force China to fundamentally restructure their roughly $600 billion trade relationship. It also raises the question of what Trump’s ultimate goal is in this trade war.
The source said that China’s blocking of critical mineral exports to the US has increased the pressure on Washington. It is stated that China has taken a tough stance on the export of rare earth elements and magnetics, which are used in many areas from automotive and electronics production to the defense industry. The source said, “It is clear that Xi is not very keen on exporting these substances to the US. However, it is still highly likely that he will pick up the phone to listen to Trump.”
A former Trump official close to the White House said Trump believed a direct meeting between the leaders would cut through the noise of the process and get to the heart of the matter.
*This is not investment advice.
