The U.S. has claimed China failed to resume exports of critical minerals and rare earth magnets—key components in the automotive and tech industries.
China’s Ministry of Commerce denied the allegations, instead accusing Washington of undermining the deal by imposing fresh restrictions on semiconductor technology.
Trump responded by introducing new export limits on semiconductor design software and revoked the visas of Chinese students.
After the phone call, he declared, “There should no longer be any doubt about the complexity of rare earth products.”
He told reporters at the White House, “Chinese students can come—no problem, really. It’s an honor to have them, frankly. But of course, we want to do proper checks.”
Chinese state media also reported that Xi warned Washington to handle the Taiwan issue “with caution” to prevent conflict.
This comes just days after U.S. Defense Secretary Pete Hegseth labeled China as an “imminent threat” to Taiwan during the Shangri-La Dialogue in Singapore.
Hegseth said that Beijing was “credibly preparing to potentially use military force to shift the balance of power.”
China considers Taiwan a breakaway province that must eventually be reunified, and has not ruled out the use of force to achieve this goal.
The U.S., while offering military support to Taiwan, does not officially recognize the island due to the One China policy.
According to the Chinese readout of the call, Xi emphasized that the U.S. must “handle the Taiwan issue prudently, so that a small number of Taiwan independence separatists do not drag China and the U.S. into a dangerous situation of conflict and confrontation.”
This long-anticipated phone call came after months of silence between the two leaders.
The White House had hinted at the possibility of such talks since the first week of Trump’s presidency.
Earlier this week, Trump aired his frustration on social media, posting:
“I like President Xi of China, always have, always will, but he is VERY TOUGH, AND EXTREMELY HARD TO MAKE A DEAL WITH!”
Trump has long prided himself on direct involvement in negotiations — a style that stands in contrast to China’s diplomatic approach.