Trump and Chinese President Xi spoke by phone amid trade dispute, Chinese media say

President Trump and Chinese President Xi Jinping held a phone call Thursday to discuss trade disputes and other sources of friction between the world’s largest economies, according to Chinese state media.

The leaders spoke at Mr. Trump’s request, the Xinhua news site reported.

Both sides are hoping to resolve the trade disputes.

Beijing wants Washington to drop its tariffs on Chinese goods and export controls on semiconductors.

Mr. Trump is trying to stem the flow of cheap Chinese goods that undercut U.S. manufacturers and get Beijing to open up its markets, while correcting trade practices the American side views as unfair.

Unlike other countries that came to the negotiating table, China retaliated against Mr. Trump’s “Liberation Day” tariffs by imposing hefty levies on U.S. goods — an early sign that Mr. Xi had no plans to cater to Mr. Trump.

Although the Chinese economy is faltering, the U.S. faces pressures of its own, particularly price-sensitive consumers who will chafe at higher, tariff-driven costs in the checkout aisle.

Tit-for-tat tariffs exceeded 100%, prompting de-escalation talks in Geneva, Switzerland, that reduced U.S. tariffs to 30% on Chinese imports and Chinese tariffs on U.S. goods to 10%.

Beijing says the U.S. undermined the Geneva truce by issuing warnings about Huawei chips for artificial intelligence and revoking student visas for Chinese students.

Mr. Trump, meanwhile, said China violated the agreement by keeping a tight grip on the export of rare earth minerals that are used in military equipment and other technologies.

The impasse led to efforts by the main leaders to resolve the dispute themselves.