Trump, Xi hold call on Taiwan, trade as China agrees to buy more US soybeans

WASHINGTON/BEIJING: US President Donald Trump and Chinese President Xi Jinping held talks on Wednesday aimed at easing tensions between the world’s two largest economies, with China agreeing to increase purchases of US soybeans while warning Washington over arms sales to Taiwan.

Trump described the conversation as “very positive” and said Beijing would raise soybean imports from the United States to 20 million tons this season, up from 12 million tons previously.

Soybean futures surged sharply following the announcement.

“All very positive,” Trump said in a post on Truth Social, adding that his personal relationship with Xi remained “extremely good.”

Xi also stressed the importance of stable ties, according to an official Chinese government account.

Analysts said the call signalled both sides were seeking to preserve stability in US-China relations ahead of Trump’s expected visit to Beijing in April.

Taiwan remains key point of tension

Despite the goodwill gesture on trade, Taiwan continues to be a major source of friction.

China urged the United States to “carefully handle” arms sales to Taiwan, after Washington announced its largest-ever weapons package for the island in December worth $11.1 billion.

Beijing views Taiwan as its own territory, a claim rejected by Taipei. The United States maintains unofficial ties with Taiwan and is legally bound to provide the island with means for self-defence.

Broader security, trade issues discussed

The leaders also discussed a range of security and economic matters, including Iran, Russia’s war in Ukraine, airplane engines, and oil and gas, Trump said.

Economic tensions remain high, with Trump continuing to push tariffs as part of his strategy to boost US manufacturing.

However, both sides appear to be searching for areas of cooperation ahead of a possible April state visit.

Soybeans important for Trump domestic base

Soybeans remain a sensitive issue because US farmers are a key political constituency for Trump, while China is the world’s top consumer.

US soybean exports have slumped to their lowest level in 14 years amid trade tensions.

Benchmark Chicago soybean futures jumped more than 3 per cent after Trump’s announcement.

China’s commerce ministry did not immediately respond to a request for comment.

Venezuela oil also raised

Trump said the call also touched on Venezuela, where China has long been a major buyer of oil under debt-for-oil deals.

The Trump administration last month removed Venezuelan President Nicolas Maduro and has suggested Beijing will now have to purchase Venezuelan oil on US terms.

The call was the first direct conversation between Trump and Xi since late November.