It seems that trade tensions between the US and China are starting to ease, as officials from both nations made statements on Sunday indicating a readiness to restart trade discussions, sparking optimism among analysts for a market recovery.
In a translated statement, China’s Ministry of Commerce expressed its willingness to “enhance dialogue” with other nations regarding trade and the recently implemented rare earth mineral export controls that have heightened tensions with the US.
The spokespersons further mentioned that China is willing to “actively consider” adjustments to the rare earth export policy to promote trade and bolster supply chains, including possible “license exemptions.” On the same day, US President Trump issued 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!!!”
The announcement regarding China’s rare earth exports elicited a reaction from US President Donald Trump on Friday, which resulted in a significant drop in crypto markets during the most devastating 24-hour liquidation event in cryptocurrency history.
This softer tone may indicate a potential reduction in hostilities between the two nations, possibly bringing an end to months of global trade strife fueled by Trump’s tariff policies that have shaken financial markets.
Related: Bitcoin crashes to $102K on Binance as Trump imposes 100% tariffs on China
Investment analysts and cryptocurrency executives remain optimistic
“If President Trump de-escalates and responds on Sunday, markets could see a significant rise on Monday. The markets’ sensitivity to Trump’s remarks remains extraordinarily high,” analysts at The Kobeissi Letter commented on Sunday.
On Friday, Trump stated there was “no need” to meet with China’s President Xi Jinping during the Asia-Pacific Economic Cooperation (APEC) summit in Seoul, Korea, set to begin on October 31, following the announcement of China’s rare earth export controls.
Trump also declared additional 100% tariffs on China as a retaliatory measure against the proposed rare earth export controls.
Nevertheless, Jeff Park, an advisor at Bitwise investment firm, asserted that a meeting between Trump and Xi Jinping is “certain to take place.”
“It has nothing to do with tariffs,” Park contended, emphasizing that Trump will attend because he seeks “historic memorabilia, photo opportunities, and elaborate ceremonies for his legacy.”
Magazine: China criticizes US crypto regulations, Telegram’s new dark markets: Asia Express
