A long-anticipated call between President Donald Trump and Chinese President Xi Jinping could happen this week, as both countries face deepening hostilities over trade, technology, and diplomatic posturing.
A senior White House official told CNBC on Monday that the two leaders could speak “very soon,” although not immediately. The conversation, which follows the fragile agreement reached in Geneva in mid-May, comes as both countries ramp up accusations of betrayal and backtracking on the terms of their three-month tariff truce.
The mood between the two sides has soured rapidly. China on Monday forcefully rejected U.S. claims that it had violated the trade agreement. “China firmly rejects these unreasonable accusations,” the country’s Commerce Ministry said in a statement. It listed export controls on artificial intelligence chips, curbs on the sale of chip design software, and even the revocation of student visas for Chinese nationals as evidence of Washington’s antagonism.
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“We urge the U.S. to meet China halfway, immediately correct its wrongful actions, and jointly uphold the consensus from the Geneva trade talks,” the ministry added.
Trade Deal on the Brink
In April, Trump stunned markets when he raised tariffs on Chinese goods to 145%, a sweeping move that effectively erased months of negotiation. Though both sides agreed weeks later to roll back most of those tariffs temporarily, the detente has not held.
Instead, accusations of sabotage are flying. Washington says Beijing is deliberately delaying exports of rare earth minerals and critical tech components. China, in turn, accuses the U.S. of engaging in economic containment, including its warning to allies against using Chinese-made chips and tightening export restrictions on advanced semiconductors.
Trump, visibly frustrated, wrote on Truth Social last Friday, “CHINA, perhaps not surprisingly to some, HAS TOTALLY VIOLATED ITS AGREEMENT WITH US… So much for being Mr. NICE GUY!”
High Stakes, Low Expectations
Despite the anticipation surrounding a possible Trump-Xi call, many observers doubt it will produce meaningful results. The tone from Beijing suggests hardening positions, not conciliation.
China’s posture has been one of defiance, underscored by a belief that it will not be bullied into making concessions. Even top global financiers agree. Speaking at a recent event, JPMorgan Chase CEO Jamie Dimon said the assumption that Beijing will bow to Washington is mistaken.
“China is a potential adversary. They’re doing a lot of things well. They have a lot of problems,” Dimon said. “But they’re not scared, folks. This notion that they’re going to come bow to America—I wouldn’t count on that.”
This sentiment reflects a growing consensus that Beijing is unlikely to compromise, even if Xi agrees to a direct conversation with Trump. The call, while diplomatically important, may be more symbolic than strategic.
The Impact of the Economic Fallout on Markets
The uncertainty is weighing heavily on markets. U.S. stocks opened lower Monday, rattled by fears that a new phase of economic confrontation may be on the horizon. Analysts warn that without a clear path forward, the current truce could unravel completely, unleashing another wave of trade shocks.
Before tensions escalated, trade between the U.S. and China exceeded $600 billion annually, making the partnership one of the most economically significant in the world. But with both governments now clamping down on each other’s technology sectors and intensifying national security restrictions, the relationship is rapidly deteriorating.
Xi-Trump Call May Be Final Attempt
The coming call, if it happens, could serve as a last attempt to revive the Geneva consensus. But even within Trump’s own team, there’s acknowledgment that only direct intervention from the two leaders might save the process.
Treasury Secretary Scott Bessent said last week that talks have stalled, and that progress will “require both leaders to weigh in with each other.” But even that seems a long shot.
However, it’s becoming increasingly clear that the Trump-Xi call may carry more symbolism than substance—a reflection of the widening gulf between two nations whose rivalry is no longer confined to trade, but to the future balance of global power.