US President Donald Trump said Chinese leader Xi Jinping has agreed to restart the flow of crucial rare earth materials, after announcing a new round of US-China trade talks will be held in London on Monday.

U.S. President Donald Trump said on Friday that Chinese President Xi Jinping agreed to let rare earth minerals and magnets flow to the United States, a move that could lower tensions between the world's biggest economies.

In a rare high-stakes phone conversation on June 5, Trump and Chinese President Xi Jinping discussed the ongoing trade standoff and reached what Trump called a 'very productive' agreement on the flow of rare earth materials.

President Donald Trump says his first conversation with Chinese leader Xi Jinping since returning to the White House had a “very positive conclusion," announcing the two countries will hold trade talks in hopes of breaking an impasse over tariffs and global supplies of rare earth minerals.