Results of the talks: On May 12, senior Chinese and American officials held two days of closed-door talks in Geneva, Switzerland and made a major breakthrough, reaching a consensus on establishing a "trade consultation mechanism". The US representative said that the differences between the two sides were not that great, which marked a "breaking of the ice" between China and the United States at the strategic level.
Background of the talks: For a long time, China and the United States have had tense economic and trade relations due to factors such as the misalignment of industrial advantages and labor structure, geopolitics, technological barriers, and institutional and cultural differences. Trump's tariff war has further exacerbated the conflict.
Significance of the talks: The seven words "substantial progress" made the world breathe a sigh of relief. The significance of this meeting lies in the change of attitude, from confrontation to dialogue, and from ideological confrontation to consultation.
Reasons for the talks: The global economy is facing a "triple squeeze", with the China-US confrontation affecting global trade, investment and technological development; domestic demand in both countries is prompting a return to rationality, and China needs to stabilize the external environment; the US "de-Sinicization" has not met expectations and has also increased costs and pressure.
Future trends: In the short term, the tariff game between China and the United States is expected to be mainly based on consultation and control. The possibility of a complete abolition of tariffs is low, but some symbolic or low-sensitivity products may be exempted first.
In short, as Sino-US relations ease and traditional financial markets stabilize, funds will flow back to the stock market, bond market, cryptocurrency and other markets. However, digital gold may also be called safe haven funds, but it is harmless, tariffs are cancelled, and we continue to be bullish.
