China's Xi Warns Trump about 'Negative' Parts of Relationship

Trump speaks to China Japan leaders about North Korea

Chinese President Xi Jinping and his USA counterpart Donald Trump held a telephone conversation on Monday, exchanging views on bilateral ties, the upcoming G20 summit and the Korean Peninsula issue.

The Trump Administration is losing patience with China's failure to stop North Korea's nuclear program, and two signals last week were new USA sanctions on Chinese aiding the North and a $1.4 billion arms sale to Taiwan.

"President Trump reiterated his determination to seek more balanced trade relations with America's trading partners", it added.

Xi said he hoped the USA president will "properly handle" Taiwan issues in accordance with the "One China" principle.

China also opposed USA sanctions targeting several entities and individuals in China that the US claimed have ties the DPRK's nuclear or missile programs.

Still, he said, the gesture seemed to indicate that China was seeking to maintain "stability and some momentum" with Mr Trump and perhaps deter him from resorting to more extreme measures, such as a military response.

The guided-missile destroyer USS Stethem intruded within the 12-nautical mile territorial limit claimed by China around Triton Island in the Paracel island group. His decision to revise his friendly approach toward China was based on China's continued illegal transactions with North Korea: a clear message that the U.S.is no longer expecting cooperation from China.

There were two reasons for Trump's change of policy: Warmbier's death, and the unsatisfactory outcomes from the Diplomatic and Security Dialogue held between the US and China on 21 June.

The U.S. has dreaded the day that North Korea developed a missile capable of hitting the homeland with a nuclear warhead. Shore-based missiles make it unsafe for the U.S. Navy to enter the Taiwan Strait in a crisis.

But at the same time, the broadcaster said relations had also been affected "by some negative factors".

Xi Jinping and Donald Trump have discussed the denuclearization of North Korea, the improvement of commercial ties, but not this maritime incident, according to a press release from the White House.

Trump's expressed determination to have "more balanced trade relations" with China and other major trading partners has taken concrete form in the threat of USA sanctions against foreign steel. The US administration has already shown its frustration over China's lack of action over North Korea and sanctions on China's Bank of Dandong, accused of money laundering for Pyongyang, could prove to be the first shot in a dispute that escalates quickly. The two leaders spoke of "the growing threat from North Korea", declared their support for "increasing pressure on the regime" and reaffirmed the US-Japan military alliance. "In the forthcoming trade negotiations, Trump may raise harsher questions to put China under greater pressure". It also approved a $1.4 billion arms deal with Taiwan, which Beijing considers a renegade province.

When Trump and Xi met in April, the two leaders agreed to take specific steps against North Korea within the next 100 days.

Taiwan's Ministry of Defense said in a statement Friday morning they were "sincerely grateful" for the U.S. decision to go ahead with the arms deal.

Beijing was also irritated after the U.S. state department gave Beijing a dismal grade last week in a new human trafficking report.

After a manoeuvre maritime conducted Sunday by the US Navy, the chinese ministry of foreign Affairs has denounced a "serious provocation to the political and military".

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