Sino-US Heads of State Call: A Turning Point for the Trade War? In-depth Interpretation of Differences and Future Trends in Bilateral Statements
6/5/20255 min read
On the evening of June 5, 2025, China time, the heads of state of China and the United States held an important phone call, and both sides subsequently issued their respective statements regarding the call. Against the backdrop of the current complex Sino-US relations, this interaction has undoubtedly attracted global attention. What information do the statements from both countries reveal? Will there be a turnaround in trade friction? This article will provide you with an in-depth interpretation.
I Comparison of the Two Statements: Similarities and Differences
Before a detailed analysis, let's first look at the main content of the post published by Trump on his "Truth Social" platform and the statement released by China's official media, CCTV (based on a Xinhua News Agency report), and sort out their similarities and differences.
Similarities:
Both sides confirmed that President Trump and President Xi Jinping recently held a phone call.
Both sides indicated that trade was a core topic of discussion , and mentioned a previously reached economic and trade consensus/agreement in Geneva. Trump's post specifically mentioned a "Trade Deal".
Trump described the call as "a very positive conclusion". President Xi Jinping also mentioned that dialogue and consultation are the "only correct choice," and Trump stated that US-China relations are "very important".
Both sides mentioned that their respective teams will continue to meet/hold a new round of talks to implement the consensus.
Both sides mentioned President Xi Jinping's invitation for President Trump to visit China, and President Trump expressed his gratitude. (Trump's post also mentioned that he himself extended a reciprocal invitation ).
Differences:
Initiator of the call: CCTV's report explicitly stated that President Xi Jinping "held a phone conversation with U.S. President Trump at the latter's request", implying the call was initiated by the US side. Trump's post did not mention who initiated the call.
Focus of discussion details: Trump's post was more specific, mentioning that "the complexity of Rare Earth products" was part of the discussion , and listed the US representatives for subsequent talks. CCTV's report focused more on principled statements, such as "to steer the giant ship of China-U.S. relations, it is essential to hold the rudder steady, set the course, and eliminate various interferences and even sabotage" , and "uphold an attitude of equality, respect each other's concerns, and strive for win-win results".
Mention of additional topics: In CCTV's report, Xi Jinping clearly emphasized the Taiwan issue, asking the US to handle it prudently , and expressed hope to enhance exchanges in diplomacy, economy and trade, military affairs, and law enforcement. Trump's post explicitly stated that "Nothing was discussed concerning Russia/Ukraine, or Iran".
Statements on agreement execution: CCTV's report stated that the Chinese side "has earnestly implemented the agreement reached at the Geneva talks" and asked the US side to "look at the progress made in a realistic way and revoke the negative measures imposed on China". Trump's post focused on the discussion of the trade deal's intricacies and stated "There should no longer be any questions".
II. The Political and Economic Codes Behind the Statements
The lines of the two countries' statements not only reflect the content of the call itself but also mirror the complexity of current Sino-US relations and the strategic considerations of both sides.
1. Political Level:
From a political perspective, this call itself is an important gesture. Against the backdrop of ongoing tensions, direct communication between top leaders helps manage differences and stabilize expectations.
China's Position and Expectations: President Xi Jinping mentioned in the call that "to steer the giant ship of China-U.S. relations, it is essential to hold the rudder steady, set the course, and eliminate various interferences and even sabotage". This indicates China's hope that the US can take active steps to return bilateral relations to a healthy and stable development track. At the same time, emphasizing the importance of the Taiwan issue is once again drawing a red line for the US on core interest matters.
US Strategy and Expression: In his statement, Trump emphasized the "very positive conclusion" of the call and that it "was focused almost entirely on TRADE" , while proactively excluding discussions on sensitive geopolitical issues like Russia/Ukraine or Iran. This may reflect a US strategy to seek breakthroughs in specific areas (like trade) while temporarily setting aside other intractable issues. Mentioning being invited to visit China and extending a reciprocal invitation also preserves space for future high-level interactions.
Domestic Political Factors: When handling foreign relations, leaders of both countries are undoubtedly influenced by their domestic political environments. For President Trump, making progress on trade issues may help him gain domestic support. For China, safeguarding national sovereignty and development interests, and maintaining strategic composure are consistent principles.
Economic and Trade Level: Trade issues were clearly the core of this call. Both sides mentioned the "agreement reached at the Geneva talks/consensus" (Trump mentioned "our recently made, and agreed to, Trade Deal" ), indicating that previous negotiation outcomes formed the basis of this discussion.
Complexity of Negotiations: Although the tone of the call was positive, the statements from both sides show that trade negotiations remain complex. For example, China emphasized "uphold an attitude of equality, respect each other's concerns, and strive for win-win results. China has sincerity and principles in this regard", hinting at the arduousness of the negotiations. The composition of the US delegation mentioned by the US side also shows its emphasis on subsequent negotiations.
III. Where Are Trade Issues Headed?
Looking ahead, the development of Sino-US trade issues will be influenced by multiple factors.
Short-term Positive Signals: Direct communication between the heads of state and the achievement of a positive consensus offer a certain possibility for easing trade tensions in the short term. The fact that both teams will continue talks means that dialogue channels remain open, which is conducive to resolving specific issues. Trump's mention of a "very positive conclusion" and President Xi Jinping's acknowledgment that "dialogue and cooperation are the only correct choice" both send positive signals.
Potential Challenges and Uncertainties:
Structural Differences Persist: China's demand that the US revoke "negative measures" , and US concerns about supply chain issues for specific products like "Rare Earth", all involve deep-seated structural contradictions and core interests of the two countries, which are difficult to resolve completely in the short term.
Trust Still Needs Rebuilding: China's hope in its statement that the US will "look at the progress made in a realistic way" suggests that there may be differences in how the two sides assess the implementation and results of the agreement. Rebuilding trust will be a gradual process.
Interference from Non-Economic Factors: Although Trump stated that the call did not discuss Russia/Ukraine or Iran , non-economic factors such as geopolitics and the Taiwan issue (which China emphasized ) may still have spillover effects on trade relations.
"Fighting While Talking" May Become the Norm: Considering the complexity and competitive nature of Sino-US relations, the two sides may present a situation of "fighting while talking, combining talking and fighting" in the trade field in the future. Even if agreements are reached in some areas, new friction points may emerge at any time. The key is whether both sides can effectively manage differences and avoid escalating conflicts.
In summary, this call between the Chinese and US heads of state has brought a glimmer of hope for resolving bilateral trade disputes, but the road ahead is still full of challenges. Whether both sides can truly find sustainable solutions through dialogue and consultation based on the principles of equality, mutual benefit, and mutual respect will not only affect the well-being of the people of both countries but also have a profound impact on the stability and development of the global economy. Let us continue to watch for subsequent developments.