However, a business deal has not been assured, given that China has taken steps to pressurize the US administration to leave the levy. Beijing has targeted American farmers, criticizing the US President, one of Trump’s major polling pools.
China Market Research Group (CMR) founder Sean Rain recently commented on China’s ongoing vengeance, stating:
“China is no longer buying American beef, they are buying Australian beef. China is no longer buying American soybean, they are buying Argentina Soybeans.”
He also commented on Beijing to prevent US chip procurement, given that China is building its own, reducing dependence on American chips.
Trump’s response and geopolitical undercontinents
President Trump responded to China’s soybean strategy, which states:
“Soybean farmers of our country are hurt because China is only for the reasons for ‘conversation’, only to buy. We have earned so much money on tariffs, that we are going to take a small part of that money, and are helping our farmers. I will never disappoint my farmers.”
However, the US President did not retaliate against China for cutting soybean imports, opposite US tariffs on India to buy Russian oil. In particular, China remains a major importer of Russian oil. This can indicate the selective restraint running backchal negotiations.
President Trump’s silence on retaliation against China suggests a possible deal, possibly at the APEC summit. While China’s Golden Week holiday can reboot the economy, many US economic indicators are brightening the initial stagflation warning.
Market implication: uncertainty beyond Apec
President Xi may have an upper hand at the APEC summit, but President Trump’s unexpectedness will leave the traders on the shore. A fully developed American-China trade war can derail the world’s two largest economies and potential investor spirit.
The upcoming economic indicators can set a tone for a conversation between President Trump and President Xi at the end of the month.
American labor market figures may be afraid of stagnation, challenging challenging challenging fed rates to increase the economy. Chinese retail sales and unemployment data will reflect the effectiveness of Beijing’s stimulation efforts in combating US tariffs.
President Xi reported the reports of reporting significantly in the US may be a checkmate in US-China relations. A adequate investment will create very important American jobs and support the economy at an important time for US administration. The question is: What price is President Trump ready to pay?
China Beige Book Recently Report:
“China is advancing the Trump administration to return national-security sanctions on Chinese deals in the US.”
Mainland Equity Markets: Post-Holiday Blues or New 2025 High?
The Mainland Equity Market will open again on Thursday, October 9. During the Golden Week Holiday, the US Equity Markets reached the new all-time high, while Gold reached a record high of $ 3,977.
Observation of an American-China trade deal and domestic consumption during the Golden Week holiday can raise Chinese shares in trading resumes.
The CSI 300 increased by 3.2% in September, extending the winning line to five months. Meanwhile, the Shanghai Composite Index rose 0.64%, reaching a 10 -year high.
However, the mainland equity markets are below record high height, providing capacity for the benefit of a strong fourth quarter. Despite the market enthusiasm, negative risk remains. The US-China trade relations may trigger a mainland equity market sales in the absence of policy support from Beijing.
