Short-term financial market: Positive signals from US-China tensions
In the context of what seemed like a resurgence of US-China trade tensions, the global financial market unexpectedly received positive signals.
President Trump has just reaffirmed his tough stance: he will not reduce tariffs on Chinese goods unless he receives 'concessions beneficial to the United States.' However, what is noteworthy is that China is taking a softer approach. According to Reuters, Beijing is exempting certain imported goods from the US from the staggering 125% tariffs, a move believed to be aimed at reducing pressure from the domestic business community.
The Chinese Ministry of Commerce has even established a special task force to compile a list of goods that may be exempt from tariffs and encourages domestic companies to proactively propose additional items – indicating an increasingly evident flexibility in trade policy.
Although both sides maintain tough rhetoric, practical actions reveal a 'soft de-escalation' process between the two largest economies in the world – a factor that could continue to support positive sentiment in the global financial market in the short term.
Conclusion: Stability in US-China trade relations is a key factor, and recent signals suggest that confrontation risks may be receding, opening up growth opportunities for the stock market, commodities, and even digital assets in the near future.