U.S. President Donald Trump and Chinese President Xi Jinping held a phone conversation on Thursday to address escalating trade tensions and tariff disputes. The call, initiated by Trump, follows recent accusations from Washington that Beijing violated a tariff-reduction agreement. China denies the claims and threatens retaliation. The call has sparked cautious optimism among investors. Though past efforts have faltered, both sides continue to navigate complex issues including Taiwan, fentanyl trade, and China's state-driven economy. Their last face-to-face meeting was in 2019.