US and China Strike a More Cooperative Tone in Trade Talks
Recent communications between the United States and China indicate a potential easing of trade tensions, sparking optimism among market analysts about a possible recovery.
Trade tensions between the US and China seem to be easing, as representatives from both nations expressed a desire to resume trade negotiations on Sunday, raising hopes for a market recovery.
In a translated statement, China’s Ministry of Commerce announced their readiness to engage in “dialogue” with other countries regarding trade and the recent rare earth mineral export controls that have exacerbated tensions.
The statement also noted China’s intention to “actively consider” adjustments in the rare earth export regulations to promote trade and strengthen supply chains, including proposals for “license exemptions.”
On the same day, President Trump released 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!!!”
China’s export control announcements triggered a response from Trump that led to significant declines in the crypto markets, marking the worst liquidations in crypto history within a single day.
The conciliatory tone could signal a resolution to the months-long trade conflicts initiated by Trump’s tariffs, which have created turbulence in financial markets.
Investment analysts and crypto industry executives remain optimistic
Investment analysts from The Kobeissi Letter noted:
“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.”
On Friday, Trump remarked that there was “no reason” to meet with China’s President, Xi Jinping, at the Asia-Pacific Economic Cooperation (APEC) summit in Seoul, scheduled for October 31, following China’s export control announcement.
Trump addresses reporters about various issues, including China’s rare earth export control policy.
Source: The White House
Trump also announced additional 100% tariffs on China, countering the proposed export controls.
Still, Jeff Park of investment firm Bitwise stated that the meeting between Trump and Xi is “guaranteed to happen,” asserting:
“It has nothing to do with tariffs, as Trump will attend because he is motivated by historic memorabilia, photo ops, and lavish ceremonies to secure his immortality.”
Related: China mocks US crypto policies, Telegram’s new dark markets: Asia Express
