The official mouthpiece of the Chinese Communist Party called Ahead of a high-stakes meeting between Donald Trump and Xi Jinping, we called on the world’s largest economies to “jointly safeguard the hard-won gains of the latest trade negotiations.”
U.S. and Chinese trade negotiators announced on Sunday that they had reached a series of deals protocol The two-day Malaysian conference addressed issues such as tariffs, shipping costs, fentanyl and export controls. It marks a significant reduction in tensions after a recent series of tariff threats and new export restrictions that threatened to undermine bilateral relations.
With a conciliatory tone, People’s Daily explain Monday’s developments demonstrated Beijing and Washington’s ability to manage their differences. “Both sides were not caught off guard by the problems and focused on solving them,” said the commentary written by Zhong Sheng. The bell is the Chinese homophone for “Voice of China” and is often used to illustrate Beijing’s foreign policy views.
The Hang Seng China Enterprises Index rose 1.3% on Monday, while the MSCI AC Asia Pacific Index rose 1.5% to set a new intraday record. China’s 10-year government bond yield edged higher as demand for safe assets fell following positive outcomes in trade talks.
Xi Jinping and Trump are expected to sign the terms in South Korea this week, the first time the U.S. president has sat down face-to-face since returning to power. The meeting may reveal details about the problem, e.g. China purchases U.S. soybeansWashington’s plan to charge freight charges on Chinese ships and Beijing’s rare earth export controls.
“We expect leaders to approve the deal, but whether it will bring lasting relief to markets is less clear — the new reality in U.S.-China relations appears to be one of frequent breakdowns and short-term fixes,” Chang Shu, David Qu and Jennifer Welch of Bloomberg Economics wrote in a note.
From Beijing’s perspective, reduced external uncertainty will buy policymakers time to focus on supporting the domestic economy and improving its technology adequacy, they added. And Chinese industry company Last month, their incomes rose the most in nearly two years, the job market remains sluggish and lingering signs of the year-long housing crash remain.
this People’s Daily The commentary called on the United States to adhere to the economic and trade consultation mechanism led by U.S. Treasury Secretary Scott Bessant and Chinese Vice Premier He Lifeng. Export restrictions announced by U.S. officials outside that framework have repeatedly derailed the system in recent months, prompting Beijing to choke off rare earth supply chains critical to U.S. manufacturing.
Bessant said he believed China would delay its latest rare earth restrictions “for a year while it is reviewed” after recent talks. It is unclear how Beijing will enforce its proposed restrictions to control any global shipments containing even trace amounts of certain rare metals from China, a move that has also triggered an outcry in Europe.
Another potential area for quick wins is the U.S. imposing a 20% fentanyl tariff on Beijing to force authorities to halt the flow of precursor chemicals used to make the deadly drug. Reducing this tariff, which is on top of Liberation Day tariffs, could be a boon for the Asian country at a time when domestic demand is weak.
Since Trump announced the highest U.S. tariffs since the 1930s in April, China and the United States have held five rounds of negotiations. In the end, Chinese products exported to the United States faced a 55% tariff. this People’s Daily The article stated that these talks proved that neither country wanted to decouple.
“Both sides should meet each other halfway, cherish the results of every dialogue, continue to enhance mutual trust, and manage differences,” the publication said.
Lu Ting, chief China economist at Nomura Holdings Inc., wrote in a report on Monday that despite recent dovish comments from both sides, global investors are learning to accept a new normal of “tension, escalation and truce.”
“Reducing tensions is a good thing for the world’s top two economies,” he added, “but we believe superpower competition is likely to escalate in the future.”