Trade tensions between the US and China appear to be softening, as representatives from both governments issued statements on Sunday that signaled a willingness to resume trade negotiations, giving analysts hope of a market rebound.
In a translated statement, China’s Ministry of Commerce said it is “ready to strengthen dialogue” with other countries on trade and the recently announced rare earth mineral export controls that inflamed trade tensions between the US and China.
The spokespeople also said China would “actively consider” provisions in the rare earth export policy to facilitate trade and strengthen supply chains, including “license exemptions.” US President Trump issued this statement on the same day:
“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: Donald Trump
China’s rare earth export announcement prompted a response from US President Donald Trump on Friday that sent crypto markets crashing in the worst 24-hour liquidation event in crypto history.
The softened rhetoric could signal a de-escalation of tensions between the two countries that could put an end to months of global trade tensions, sparked by Trump’s trade tariffs, which have caused turmoil in financial markets.
Related: Bitcoin plummets to $102K on Binance as Trump announces 100% tariffs on China
Investment analysts and crypto industry executives remain hopeful
“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,” investment analysts at The Kobeissi Letter wrote on Sunday.
On Friday, Trump said there was “no reason” to meet China’s President, Xi Jinping, at the Asia-Pacific Economic Cooperation (APEC) summit in Seoul, Korea, scheduled to kick off on October 31, in response to China’s rare earth export control announcement.
Trump addresses reporters about a host of issues, including China’s rare earth export control policy. Source: The White House
Trump also announced additional 100% tariffs on China as a countermeasure to the proposed rare earth export controls.
However, Jeff Park, an advisor at investment company Bitwise, said that the meeting between Trump and Xi Jinping is “guaranteed to happen.”
“It has nothing to do with tariffs,” Park argued, adding that Trump will attend the meeting because he is motivated by “historic memorabilia, photo ops, and lavish ceremonies to secure his immortality.”
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