US-China dialogue rekindles hope for global markets
By Onyango KOnyango, June 10, 2025In an era defined by strategic rivalry, fractured alliances, and mounting global economic uncertainty, the recent phone call between former US President Donald Trump and Chinese President Xi Jinping offers a rare and valuable glimpse of diplomatic pragmatism.
Even more promising is what has followed: the meeting between US and Chinese officials in London which took place on June 9, 2025.
These two developments, one symbolic, the other substantive – send a powerful signal that dialogue between the world’s two largest economies is not only possible but actively underway.
And in a time of global instability, that is unambiguously good news.
The Trump-Xi call, while informal and outside the bounds of official diplomacy, is still deeply significant. Trump remains an influential political figure and a frontrunner in the 2024 U.S. presidential race.
His communication with Xi – framed as a candid and constructive exchange – suggests that regardless of who sits in the White House next year, there is appetite for reducing tensions and re-engaging in meaningful dialogue.
For a global economy navigating inflationary shocks, supply chain recalibrations, and fiscal uncertainty, that kind of signal matters.
Markets are notoriously sensitive to shifts in the US-China relationship. Tariff disputes, technological competition, and geopolitical tensions have all contributed to economic headwinds in recent years.
The Trump-Xi call, however modest, serves as a stabilising gesture – an encouraging moment that reaffirms the importance of communication between two interconnected economies.
What makes the gesture more impactful is the concrete follow-up: Senior trade officials from Washington and Beijing yesterday held talks in London.
These discussions centred on trade normalisation, investment policy, and joint efforts to enhance supply chain resilience.
The selection of London as a neutral setting highlights a shared desire to approach the talks in a spirit of cooperation and mutual benefit.
This is a promising development. Despite differences in governance models and global outlooks, both countries understand the practical need for engagement.
The timing is especially important.
As global growth slows and inflationary pressures persist, responsible coordination between the US and China can ease financial market anxiety and help restore confidence.
The June 9, 2025, meeting in London involved senior representatives from the US Treasury Department, the Department of Commerce, and the National Economic Council.
On the Chinese side, key officials from the Ministry of Commerce and the People’s Bank of China attended.
While no dramatic breakthroughs are anticipated, even incremental steps – such as renewed dialogue on export policies or easing of business travel restrictions – could send a positive signal to global markets and international institutions.
The Trump-Xi call may have opened the door, but the London talks show that both sides are willing to walk through it.
These actions suggest a mutual recognition that sustained economic disengagement is not a viable path forward. Dialogue, even amid disagreement, is a sign of strength – not concession.
The writer is a Journalist and Communication Consultant
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