Trade tensions between the US and China seem to be easing, as representatives from both governments made statements on Sunday indicating a readiness to resume trade discussions, raising analysts’ hopes for a market recovery.
In a translated statement, China’s Ministry of Commerce expressed its “willingness to enhance dialogue” with other nations on trade and the recently announced rare earth mineral export controls that escalated tensions with the US.
The spokespersons also indicated that China would “actively consider” aspects of the rare earth export policy to facilitate trade and fortify supply chains, including provisions for “license exemptions.” On the same day, US 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 announcement regarding rare earth exports triggered a response from President Donald Trump on Friday, leading to a significant drop in crypto markets, marking the most severe liquidation event in crypto history.
The softened language may indicate a reduction in tensions between the two countries, potentially ending months of global trade disputes that began with Trump’s trade tariffs, which have caused upheaval in financial markets.
Related: Bitcoin drops to $102K on Binance as Trump announces 100% tariffs on China
Investment analysts and crypto industry leaders remain optimistic
“If President Trump reacts and de-escalates on Sunday, the markets are likely to experience a substantial jump on Monday. The markets remain highly sensitive to Trump’s posts,” investment analysts at The Kobeissi Letter noted on Sunday.
On Friday, Trump stated that there was “no reason” for him to meet with China’s President, Xi Jinping, at the upcoming Asia-Pacific Economic Cooperation (APEC) summit in Seoul, Korea, scheduled for October 31, due to China’s rare earth export control announcement.
Trump also announced additional 100% tariffs on China as a retort to the proposed rare earth export controls.
Nevertheless, Jeff Park, an advisor at investment firm Bitwise, asserted that the meeting between Trump and Xi Jinping is “certain to take place.”
“It has nothing to do with tariffs,” Park maintained, adding that Trump’s attendance at the meeting is driven by “historical memorabilia, photo opportunities, and extravagant ceremonies to ensure his legacy.”
Magazine: China mocks US crypto policies, Telegram’s new dark markets: Asia Express
