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Trump and Xi hold call, Chinese state media says

President Trump and Chinese President Xi Jinping spoke on Thursday, Chinese state media said, amid rising trade war tensions. Why it matters: Washington and Beijing have accused each other of violating the 90-day trade truce reached three weeks ago, under which both dramatically lowered tariffs and promised further dialogue.China's foreign minister claimed this week that the U.S. had "introduced a series of negative measures" since the deal, and that relations were at a "critical juncture."A day earlier, a spokesperson for China's Commerce Ministry alleged the U.S. had "seriously undermined" the trade agreement by announcing new AI chip export control guidelines and the revocation of visas for Chinese students. China was prepared to "take resolute and forceful measures," the spokesperson said. That came after Trump on Friday claimed China had "totally violated" the tariff pause agreement, and later doubled steel tariffs.Between the lines: The tariff pause deal that's starting to look shaky contributed directly to a rebound in consumer confidence, CEO confidence and the stock market.State of play: This would be the first announced call between the two since Jan. 17, three days before Trump took office.Trump claimed in April that Xi had called him to discuss tariffs since then, but Beijing denied that.As Trump pushed tariffs all the way to 145% in April, Chinese officials suggested Xi was not interested in speaking to Trump unless the U.S. dialed back its aggression both rhetorically and on trade.Trump has repeatedly suggested that he and Xi speak directly to work out the trade dispute, and top U.S. officials made clear in recent days that he was itching to get on the phone with Xi.Friction point: One issue Trump was likely to have raised on the call is rare earth minerals. China is reportedly withholding exports, angering the Trump administration and potentially compromising high tech supply chains.For the record: The White House did not immediately return emails for comment on the call.

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