Trump and XI in conversation: What is behind the phone?

Trump and XI in conversation: What is behind the phone?

Washington, D.C., USA - President Donald Trump made a phone call with the Chinese President Xi Jinping. This information has been confirmed by the Chinese news agency Xinhua, while the White House has so far not provided official confirmation. Details about the content of the conversation are not known, but Trump said about Truth Social that he likes XI, but it was "exceptionally difficult" to make a "deal". This was the first known phone call between the two heads of state since Trump's office in January.

Before his swearing -in, Trump and Xi had already spoken to each other. In the past few months, Trump had always reacted evasively to a possible conversation with XI. The direct exchange between the two guided tours has a special weight, especially in the context of the ongoing trade conflict between the USA and China.

trade conflict between the USA and China

The trade conflict between the USA and China has existed since the beginning of 2018 and is shaped by various arguments such as the introduction of new and the increase in existing import tariffs. The main causes are the US trade balance deficit, the protection of intellectual property and forced technology transfer in China. In 2017, US goods exports to China were $ 130.4 billion, while imports from China reached $ 505.6 billion.

The dispute broke out with Trump's announcement of punitive tariffs on solar cells, solar modules and washing machines in January 2018. From March 2018, the US government introduced global import duties on steel and aluminum, which came into force on March 23. The trade conflict led to a massive increase in US criminal tariffs on imports from China that were recently increased to 145 percent.

Conversely, China reacted to the US criminal tariffs. In mid -May, a mutual reduction in punitive tariffs was temporarily agreed. However, the tone between the two countries has been tightened recently, especially with regard to the preparation of a new sanction package against Russia in the US Senate, which could also have an impact on China.

The trade disputes and the resulting tariffs also have negative consequences for European companies in China, and US economists warn that the import tariffs of the US economy could harm. Reports indicate that companies such as Ford, GM and Tesla have already recorded declines.