US and China Ease Trade Tensions, Raising Market Rebound Hopes
Recent statements from US and Chinese representatives indicate a willingness to resume trade negotiations, sparking optimism among analysts regarding potential market recovery.
Trade tensions between the United States and China seem to be easing as officials from both nations indicated a readiness to engage in trade discussions on Sunday, instilling hope for a potential market recovery.
In a translated statement, China’s Ministry of Commerce expressed its commitment to enhance dialogue with other nations concerning trade and the recent export limitations on rare earth minerals that had escalated trade tensions. The representatives mentioned that China would consider adjustments to the rare earth export policies to foster trade and reinforce supply chains, which may include the introduction of “license exemptions.”
On the same day, President Trump shared this statement:
“Don’t worry about China, it will all be fine! Highly respected President Xi just had a bad moment. He doesn’t want depression for his country, and neither do I. The USA wants to help China, not hurt it!!!”
Source
Source: Donald Trump
Following China’s rare earth export announcement, a response from President Trump triggered a significant downturn in the crypto markets, marking the “worst liquidation event” in cryptocurrency history.
The conciliatory words from both nations might signal a reduction in hostilities that had plagued global trade in recent months, which were largely ignited by Trump’s trade tariffs, resulting in considerable market volatility.
Related: Bitcoin’s plunge to $102K as Trump announces 100% tariffs on China
Analysts and Crypto Leaders Optimistic
Investment analysts based at The Kobeissi Letter remarked, “If President Trump responds and de-escalates on Sunday, markets are set for a big jump on Monday. The reactivity of markets to Trump’s posts remains incredibly high,” they wrote on Sunday.
Last Friday, Trump declared that there was “no reason” to engage with China’s President, Xi Jinping, at the impending APEC summit in Seoul, Korea, set for October 31, as a counteraction against China’s rare earth export controls.
Source
Source: The White House
Trump has also initiated additional tariffs on Chinese goods as a reaction to the rare earth measures proposed by China.
Nonetheless, Jeff Park, an advisor at Bitwise, expressed confidence that the meeting between Trump and Xi is certain to take place. He noted, “It has nothing to do with tariffs,” suggesting that Trump’s motivation lies in seeking memorable experiences and photo opportunities to cement his legacy.
