Both nations signal readiness to negotiate amid rare earth export dispute
The United States and China appear to be stepping back from escalating trade tensions after a week of market turmoil. On Sunday, officials from both sides expressed a renewed willingness to engage in trade dialogue, a shift that analysts say could revive investor confidence and stabilize global markets.
In a translated statement, China’s Ministry of Commerce said it is “ready to strengthen dialogue” regarding trade relations and the controversial rare earth mineral export controls that triggered fresh disputes with Washington last week. The ministry also noted that Beijing may “actively consider license exemptions” to ease supply chain disruptions.
US President Donald Trump also struck a conciliatory tone on social media, writing, “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
Analysts interpret Trump’s softer tone as a sign of potential de-escalation, which could calm markets following Friday’s record-breaking sell-off.
Analysts Expect Market Recovery
Investment strategists believe the diplomatic shift could mark the start of a short-term rebound across global equities and cryptocurrencies.
“If President Trump responds and de-escalates on Sunday, markets are set for a big jump on Monday,” analysts at The Kobeissi Letter noted, emphasizing that “the reactivity of markets to Trump’s posts remains incredibly high.”
Friday’s downturn was fueled by Trump’s earlier decision to impose 100% tariffs on all Chinese imports, a move that rattled investors and sent crypto markets into their steepest one-day liquidation in history.
Despite earlier tension, many observers believe a meeting between Trump and President Xi Jinping at the upcoming APEC Summit in Seoul remains likely.
Jeff Park, an investment advisor at Bitwise, commented that the meeting is “guaranteed to happen,” explaining that Trump is motivated by “historic memorabilia, photo ops, and lavish ceremonies to secure his immortality.”
The renewed dialogue between Washington and Beijing may not resolve years of trade friction overnight — but the softer rhetoric marks a rare moment of optimism for investors navigating an increasingly uncertain global economy.
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