Chinese President Xi Jinping pressed U.S. President Donald Trump on the status of the self-governing island of Taiwan and urged his counterpart to maintain better relations, according to the Chinese Foreign Ministry.

Xi told Trump that Taiwan's return to China was an important part of the post-World War II international order, according to a statement from the call. The Chinese leader also said the two countries should maintain the positive momentum generated during their meeting last month in South Korea and expand cooperation, the statement said.

The two leaders also discussed Russia's invasion of Ukraine, and Xi expressed hope for both sides to reach a binding peace treaty, the ministry said.

A White House official confirmed the call took place but did not provide details about the discussion.

The ongoing dispute between Japan and China centered around Taiwan threatens to add new tensions to the Trump-Xi relationship and complicate relations, after the world's two largest economies reached a trade truce in October.

The deal saw Washington lower tariffs on Chinese goods and Beijing agree to remove certain restrictions on rare earth exports. Any flare-up between the US and China could cause further uncertainty for markets and business leaders.

Japan's new Prime Minister, Sanae Takaichi, said earlier this month that a hypothetical Chinese attack on Taiwan could result in a military response from Tokyo. Beijing views the island as its own territory and has condemned Takaichi's remarks, demanding a retraction.

Since then, China has issued a travel advisory for Japan, suspended the screening of some Japanese films, and banned imports of Japanese seafood. The two countries have also stepped up military exercises, with China announcing patrols in the East China Sea and Japan announcing plans to deploy missiles near Taiwan.

Trump said in a November 2 interview with CBS News' 60 Minutes that Xi "understands the answer to that" when asked whether US troops would come to defend Taiwan in the event of a Chinese attack. The US leader said the topic was not discussed in their meeting last month.

Trade Terms

The US and China are still negotiating key details about how Beijing will exempt rare earth metal sales, according to sources familiar with the matter. The two countries aim to agree on the terms of China's promised "general license" for rare earth metal and critical mineral exports to the US by the end of this month.

While the outcome of negotiations on these materials, which are crucial for the manufacture of high-tech electronics, remains unclear, the US has taken steps to reduce tariffs and national security measures. A shortage of rare earth metals has put global industries including automotive, consumer goods, and robotics at risk of disruption.

The talks also come as the Trump administration is again considering whether to allow the sale of more advanced artificial intelligence chips to Beijing. Trump had raised the possibility before his meeting with Xi in October, but ultimately the two leaders did not discuss the issue. Some of Trump's advisers have warned that the potential sales risk reducing the US's lead in emerging technologies. The president is listening to "a lot of different advisers" in deciding whether to approve future exports, Commerce Secretary Howard Lutnick said Monday in an interview with Bloomberg Television.

"That kind of decision is in Donald Trump's hands," Lutnick said. "He'll decide whether we continue or not."

Trump also said on November 14 that the US was talking with the Chinese government about increasing purchases of American soybeans, another provision of the agreement.

"They're in the process of doing it," Trump said. "We talked to them today. They're in the process. We're not just doing a little bit, but they're going to be doing a lot of soybean purchases." (alg)

Source: Bloomberg.com