In a new escalation of tensions between the United States and China, US President Donald Trump described his Chinese counterpart Xi Jinping as “very difficult, and very difficult to negotiate with him”, in a post posted on the “Truth Social” platform.
“I admire President Shi, I have always been so, and I will stay so, but he is a very difficult and very difficult person in concluding a deal with him!”
This sudden statement raised new questions about the ability of the fragile commercial truce between Washington and Beijing to withstand, at a time when tension increases between the two largest economies in the world. There was no immediate official comment from the White House on Trump’s publication, according to Bloomberg.
An increased tension after a truce
Bloomberg notes that this tension comes just weeks after the announcement of a commercial truce last May, which included customs discounts and initial agreements between the two sides at the Geneva meeting. However, the Trump administration has since taken controversial steps, most notably:
- Preventing the export of spare parts sensitive to aircraft engines to China.
- Beijing’s access to electronic chips design programs.
- Imposing additional restrictions on the Chinese company Huawei.
- Announcing a plan to cancel Chinese students’ visas last week.
On the other hand, Beijing responded with a diplomatic anger to statements made by US Defense Secretary Beit Higseth at a military conference, during which he warned that China was “an imminent threat to Taiwan”, which is the island that China considers part of its territory.
China’s response .. the situation is fixed
When a spokesman for Chinese Foreign Ministry, Lyn Jian, asked Trump’s publication, he said during a periodic press conference: “The principle of China and its position on developing Chinese-American relations is constant and consistent.”
But Bloomberg indicated that Beijing has not yet confirmed any plans to make a direct call between the two leaders, although the White House insisted more than once that a contact between Trump and Shi was “likely” this week.
Rare minerals hinder understanding
According to Bloomberg, on the authority of Corrie Combes, head of research chains for strategic minerals at the Trevim China Foundation, the current dispute revolves around rare ground minerals, which are essential elements in defense and technical industries.
“It is clear that the American side believed that Beijing will completely remove the condition of approval to export these minerals. But it seems that this was not what Beijing understood from the Geneva Agreement,” Kombus said.
The reduction of American drawings last month was conditional on stopping Chinese restrictions on exporting magnets made of these minerals, but the continued Chinese control pushed Washington to accuse Beijing of violating the agreement.
Reactions in the financial markets
Despite the sensitivity of the statements, the international market responses were “lukewarm”, according to Bloomberg’s description. The Chinese stock index traded on the Hong Kong Stock Exchange reduced its gains to 0.5%, while the Bloomberg index of the dollar decreased by a slight rate of 0.1%. US Treasury’s revenues stabilized for 10 years at 4.45%, which reflects a case of anticipation more than a real concern in the market.
Bloomberg asserts that China has shown remarkable resistance to the most informational system imposed by America during a century, thanks to government motivation and huge public spending programs during the first quarter of the year. However, the manufacturing sector has recently decreased, and real estate prices continued to decline, which affected the confidence of consumers whose wealth is linked to the real estate market.
Direct conversation
In previous statements made last Friday from the Oval Office, Trump expressed his desire to make a nearby phone call with the Chinese president, despite accusing Beijing of violating part of the Geneva Agreement, and said, “I am sure I will talk to President Xi, and I hope to solve this.”
Trump also hinted that he was ready to visit China himself if necessary, although there is no declared date for such a meeting so far.
According to Bloomberg, Trump’s recent statements reveal the depth of frustration within his administration from the approach of Xi Jinping, and puts the future of the commercial armistice at stake, especially in the absence of a clear timetable for direct contacts between the two leaders, and the escalation of the confrontation in technology files, visas, and rare minerals.