Us-China Talks Expand Over Iran, Trade and Taiwan in Key Diplomatic Round

US President Donald Trump and Chinese President Xi Jinping recently held a wide-ranging phone call that included Iran, trade tensions and security issues, as Washington urges Beijing and other capitals to further isolate Tehran and consider tighter coordination on nuclear talks, sanctions and regional stability.

The White House has been pressing countries that still trade with Iran to limit ties, even as Beijing maintains economic links with Tehran. During the call, Trump and Xi also discussed longstanding friction points in the US-China relationship, including Taiwan, tariffs and planning for high-level diplomatic engagements later this year.

The Chinese government said the leaders reviewed major international summits that both sides will host in the coming year and broader diplomatic agendas. However, the statement did not refer to Trump’s planned visit to Beijing in April, which Trump had mentioned earlier while speaking about deepening engagement with Xi.

Beijing again underlined its uncompromising position on Taiwan, stressing that Taiwan would not be allowed to separate from China. Taiwan functions with its own government and military, but China regards the island as part of its territory and opposes any move that could be seen as formal independence.

On social media, Trump described ties with Xi in positive terms and said the relationship was very important for both governments, linking personal rapport to the handling of trade disputes, security matters and negotiations over Iran and nuclear weapons limits.

Trump’s administration has tried to reshape global trade flows connected to Iran. Last month, Trump announced a 25% tax on imports from countries that continue trading with Tehran, a move intended to increase pressure after years of sanctions targeting Iran’s nuclear activities.

Despite those restrictions, Iran still recorded nearly USD 125 billion in foreign trade in 2024, according to World Trade Organization data. This included about USD 32 billion in trade with China, USD 28 billion with the United Arab Emirates and USD 17 billion with Turkey, highlighting persistent commercial links.

Key figures on Iran’s 2024 international trade are shown below.

While Trump spoke with Xi about Iran and trade, Xi also held separate talks with Russian President Vladimir Putin. That conversation came as the New START treaty between Washington and Moscow nears expiry, raising the prospect that numerical limits on the world’s two largest nuclear arsenals could lapse for the first time in more than fifty years.

Trump has said he wants to keep some form of nuclear arms limits but prefers a broader framework. Trump previously stated his desire for China's involvement in future nuclear agreements: "I actually feel strongly that if we're going to do it, I think China should be a member of the extension," he told The New York Times last month.

The Trump-Xi phone call took place as ministers from Europe, Asia and Africa met in Washington to discuss alternatives to Chinese-dominated supply chains for critical minerals. These raw materials are vital for building jet engines, smartphones and many advanced technologies, where China currently holds a strong position in global processing.

Vice President JD Vance used the meeting to urge partners to work towards shared resilience. "What is before all of us is an opportunity at self-reliance that we never have to rely on anybody else except for each other," he said, highlighting concerns about dependence on Beijing for key industrial inputs.

Xi has also been engaging a range of Western leaders amid unease about Trump’s tariff measures and Trump’s suggestion that the United States should acquire Greenland, which is administered by Denmark. The disruption linked to US trade policies has made securing new trade and investment deals a priority for several of Washington’s partners.

Global trade diplomacy continues on other fronts as well. Vietnam and the European Union upgraded their relationship to a comprehensive strategic partnership last month, only two days after the EU and India reached a free-trade agreement, underscoring efforts by governments to diversify economic ties during a period of trade uncertainty.

Separate from Trump’s call with Xi, US special envoy Steve Witkoff is expected to meet Iranian officials later this week. Those talks follow Iran’s crackdown on protests last month and continuing tensions over Tehran’s nuclear programme, as Washington presses for further concessions while at the same time working to bring China and Russia into wider strategic discussions.