China, U.S. to meet for another round of trade talks soon?
Several takeaways from Xi-Trump phone call
Chinese President Xi Jinping and U.S. President Donald J. Trump just concluded a phone call.
Based on the respective readouts, there was a constructive tone and broadly similar issue framing; Trump repeatedly emphasizes respect for Xi and the significance of the bilateral relationship, and both signal an April milestone (Trump’s visit to China) as the next move.
In addition to the visit in two months, Xi said, “China will host the APEC Economic Leaders’ Meeting, and the U.S., the G20 Summit.” Put together, I think it’s likely the two top leaders will meet three times in 2026.
I certainly don’t have nearly the inside information Scott Bessent enjoys, but allow me to insist the Treasury Secretary’s expectation of four meetings is overly optimistic.
President Xi also nodded to the 250th anniversary of U.S. independence.
Below are several more concrete thoughts.
Another round of trade talks?
According to the Chinese readout, Xi told Trump on Wednesday, Feb 4 (emphasis mine)
The two sides should follow the common understandings we have reached, enhance dialogue and communication, manage differences properly, and expand practical cooperation.
On January 29, according to the transcript of a regular press conference of China’s Ministry of Commerce (MOFCOM)
[Phoenix TV Reporter]:
The U.S. Trade Representative recently told reporters in Davos that prior to a potential meeting between the Chinese and U.S. leaders possibly scheduled for April, the two sides have an opportunity to launch a new round of economic and trade negotiations. What is the Ministry of Commerce’s comment on this?
[He Yongqian, Spokeswoman of MOFCOM]:
In 2025, under the strategic guidance of the heads of state of China and the United States, the two sides have conducted five rounds of economic and trade consultations in the spirit of equality, respect, and mutual benefit, achieving a series of positive outcomes. These efforts fully demonstrate that China and the United States can find solutions to their trade differences through equal dialogue and consultation.
Following the leaders’ meeting in Busan, the two sides have maintained communication at various levels through the China-U.S. economic and trade consultation mechanism, jointly advancing the implementation of the important consensus reached at the leaders’ meeting and the outcomes of the Kuala Lumpur trade consultations. Moving forward, China stands ready to work with the United States to uphold and implement the important consensus reached by our two heads of state, make good use of the China-U.S. economic and trade consultation mechanism, properly manage differences, advance cooperation, and promote the stable, healthy, and sustainable development of China-U.S. economic and trade relations.
On January 20, US Trade Representative Jamieson Greer floated another potential round of trade negotiations with China ahead of President Donald Trump’s planned meeting in April with his counterpart Xi Jinping. Bloomberg reported
“There’s a chance that we might meet before then and try to have some kind of further agreement on things we can trade between us that are non-sensitive,” Greer told reporters on Tuesday in Davos, Switzerland, where he was attending the annual World Economic Forum.
MOFCOM’s response on January 29 was vague but definitely positive. With Xi’s instruction on Wednesday to “enhance dialogue and communication,” I think it’s likely the two sides will meet for another round of trade talks before Trump’s April visit to China.
Beijing warns against (further?) U.S. arms sales to Taiwan
Xi told Trump (emphasis mine, again)
President Xi emphasized that the Taiwan question is the most important issue in China-U.S. relations. Taiwan is China’s territory. China must safeguard its own sovereignty and territorial integrity, and will never allow Taiwan to be separated. The U.S. must handle the issue of arms sales to Taiwan with prudence.
Beijing’s objections to U.S. arms sales to Taiwan are long-standing, often citing the August 17, 1982, joint communique
the United States Government states that it does not seek to carry out a long-term policy of arms sales to Taiwan, that its arms sales to Taiwan will not exceed, either in qualitative or in quantitative terms, the level of those supplied in recent years since the establishment of diplomatic relations between the United States and China, and that it intends gradually to reduce its sale of arms to Taiwan, leading, over a period of time, to a final resolution. In so stating, the United States acknowledges China’s consistent position regarding the thorough settlement of this issue.
At the end of December 30, Beijing conducted a large-scale military drill circling Taiwan, in an apparent response to the $11 billion arms package for Taiwan, the largest ever of its kind, announced on December 18.
However, more U.S. arms sales to Taiwan are in the pipeline with four deals yet to be notified to Congress, a senior Taiwanese defence official said on January 15, 2026, according to Reuters.
According to Beijing, Trump said, “I understand how China feels about the Taiwan question.”
Worth mentioning that Beijing appears to warn that it could intercept Evergreen ships transporting HIMARS to Taiwan, in war or peace.
Airplane engines as a “chokepoint” now prominent
Trump said on social media that he and Xi talked about “airplane engine deliveries.”
Compared with Nvidia chips that are crucial to artificial intelligence and related software, airplane engines have received less attention. The Trump administration paused the exports in May 2025 in retaliation for China’s then-restrictions on exports of critical minerals to the United States. The U.S. greenlit them in early July, following concessions from Beijing over rare earths.
Reuters reported that at the time, the engines were mainly GE’s LEAP-1C engines made for COMAC’s C919 single-aisle aircraft, and GE’s CF34 engine used on COMAC’s C909 regional jet.
COMAC stands for Commercial Aircraft Corporation of China, China’s wannabe of Boeing and Airbus. COMAC vastly missed its delivery targets last year.
George Chen’s take
For the readouts