China and the US on Wednesday agreed to hold more trade talks in hopes of breaking an impasse over tariffs and global supplies of rare earth minerals, a move that came after the leaders of the two countries had a “very positive” phone conversation.

President Donald Trump said in a post on Truth Social that his call with Xi Jinping, China’s top leader, had lasted for around an hour and a half and had focused entirely on the trade relationship between the two nations, which has been souring in recent months amid a growing dispute over the export of critical minerals used in a wide array of industries.

“I just concluded a very good phone call with President Xi, of China, discussing some of the intricacies of our recently made, and agreed to, trade deal,” Trump said. The call, he added, “resulted in a very positive conclusion for both countries.”

Trump also implied that the two leaders had resolved issues surrounding the exports of rare earth minerals that China had recently halted to the US, though he did not elaborate. He said his trade team would meet again soon with Chinese officials, in a yet-to-be-determined location, and he said that both he and Xi had invited each other and their spouses to visit their respective countries.

Chinese state media confirmed the call in a report on Thursday, which said that the exchange had happened at Trump’s request.

According to the Chinese readout, Xi called for greater cooperation and respect between the countries, and welcomed Trump to visit China.

Trump and Xi were last known to have spoken to each other on January 17, days before Trump was inaugurated as President.

Trump said Thursday’s discussion did not touch on matters beyond trade, including the Russia-Ukraine war and the Iran nuclear negotiations.

The call appeared to signal a thaw in the US-China relationship, following several weeks of escalating tensions between the superpowers.

The two countries had reached a tentative trade truce in a meeting in Geneva last month, in which they agreed to roll back tariffs they had placed on each other earlier this year, and remove other trade barriers.

But in recent weeks, they had each accused the other of violating their Geneva agreement. China has continued to restrict exports of rare earth minerals that are essential for US makers of cars, airplanes and defence goods, while the US has responded by halting exports of American technology and a range of industrial products to China. The Trump administration also proposed a plan to revoke visas for some Chinese students.

On Wednesday, Trump wrote on social media that Xi was “VERY TOUGH, AND EXTREMELY HARD TO MAKE A DEAL WITH.”

Shortages of the minerals, which are used to make powerful industrial magnets, have threatened to bring some American factories to a standstill, including America’s defence industry. China dominates the global market for the minerals and views it as a choke point over the US.

The White House did not immediately respond to requests for comment.

In early April, Trump raised US levies on Chinese goods to an eye-watering minimum rate of 145 per cent and China retaliated by increasing duties on American imports to 125 per cent.

New York Times News Service