Source: Global Times

[Reported by Global Times Correspondent Li Meng] CNBC reported on the 23rd that according to messages from the U.S. Department of State and the Chinese Foreign Ministry on the same day, officials from both sides had a phone call on the 22nd. CNBC said this was the first phone call after the U.S.-China Geneva economic and trade talks, citing experts who expressed that it was a "positive signal."

According to the message from the Chinese Foreign Ministry, on the 22nd, Vice Foreign Minister Ma Chaoxu had a telephone conversation with U.S. Deputy Secretary of State Wendy Sherman, exchanging views on U.S.-China relations and important issues of common concern. Both sides agreed to continue communication. The U.S. Department of State's statement read: "Both sides agreed that bilateral relations are crucial to people in both countries and even the world... and both agreed that maintaining open communication channels is vital."

Bloomberg reported that this call indicated that both sides continued active communication after issuing a joint statement at the beginning of the month regarding tariffs. CNBC said that in the press releases about the call, neither side explicitly mentioned whether tariffs were discussed, but the similar wording suggested that both sides would continue high-level contact, striving for broader agreements.

CNBC quoted Dan Wang, director of Eurasia Group’s China Division, saying that although this call may not represent a breakthrough in ongoing trade negotiations, it sends a "positive signal," indicating that "the communication channels established during the Geneva talks are functioning."

In an interview with the Global Times on the 23rd, Wu Xinbo, dean of Fudan University's Institute of International Studies, said that the call between Ma Chaoxu and Sherman was the second diplomatic-level communication between China and the U.S. since Trump's second term. In January, then Foreign Minister Wang Yi had a call with U.S. Secretary of State Pompeo when Trump just took office. Wu Xinbo believed that the call on the 22nd indicated that U.S. and Chinese diplomatic institutions might be preparing further contacts on certain diplomatic issues of concern.

Bloomberg reviewed recent contacts between China and the U.S., stating that earlier this week, Ma Chaoxu also met with newly appointed U.S. Ambassador to China David Bisbee. This week, People's Bank of China Governor Pan Gongsheng exchanged views with former U.S. Treasury Secretary Timothy Geithner. According to Xinhua News Agency, Politburo member and State Council Vice Premier He Lifeng met with JPMorgan Chase Chairman and CEO Jamie Dimon in Beijing on the 22nd.

Jamie Dimon recently told Bloomberg in an exclusive interview that "American business consensus is to continue doing business in China. Although U.S.-China trade negotiations may bring about some strategic adjustments, I don't think the U.S. government wants us to leave China."

U.S. media reported that despite the easing of U.S.-China relations after the Geneva talks, disputes continue in some technology fields. Last week, the U.S. Commerce Department claimed that using Huawei Ascend chips anywhere in the world violated U.S. export control regulations. Chinese Commerce Ministry spokesperson repeatedly voiced opposition, criticizing on the 21st that the U.S. measures were typical unilateral bullying and protectionism, seriously damaging the stability of the global semiconductor supply chain, and depriving other countries of their rights to develop advanced computing chips and high-tech industries such as artificial intelligence.

CNBC cited Nomura Securities analysts' analysis in a report on the 23rd, stating that the latest dispute between the U.S. and China in the semiconductor field highlighted the "inevitable conflicts" in certain strategic areas. They expected the U.S. government to adopt more targeted industry tariffs and non-tariff measures to restrict China's access to advanced technologies. In response, China may strengthen its export controls on rare earths to the U.S.

The Financial Times on the 23rd quoted Malaysia's Minister of Trade and Industry, Mustapa Mohamed, as saying that the U.S.-China dispute is forcing many Southeast Asian countries, which serve as connectors in the supply chains between the two major economies, to choose sides. "We must maintain balance by not taking sides, understanding each side's concerns; all countries are struggling to cope with this situation, which is very difficult." He also warned that if the U.S. government imposes tariffs on chip manufacturing, it will have a "significant impact" on Malaysia's economy, as semiconductors account for more than 60% of Malaysia's exports to the U.S.

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