<div>As the United States and China intensify their economic rivalry, Europe finds itself increasingly caught in the middle&mdash;vulnerable to becoming a dumping ground for Chinese goods shut out of the American market. Despite the European Union&rsquo;s (EU) efforts to balance relations with both superpowers, China&rsquo;s rapidly growing trade surplus with the EU is triggering alarm across the continent and exposing cracks in Europe&rsquo;s open-market model.</div>
<div>As the United States and China escalate their economic rivalry and with no long-term certain solution in sight, Europe finds itself caught in the crossfire, increasingly vulnerable to becoming a fallback market for Chinese goods squeezed out of the US economy. Despite the European Union&rsquo;s (EU) efforts to maintain balanced relations with both economic giants, China&rsquo;s growing trade surplus with the EU is raising alarm across the continent.</div>
<div>In the first four months of 2025 alone, China&rsquo;s trade surplus with the EU surged to a record $90 billion, underlining the shift in global trade patterns as the US imposed reciprocal tariffs on dozens of countries. With American levies on Chinese goods still up to 30 percentage points higher than they were at the start of this year, much of China&rsquo;s excess production is being increasingly redirected toward Europe&mdash;some through Southeast Asia and Latin America.</div>
<div>According to a report by Bloomberg, Maxime Darmet, senior economist at Allianz Trade, said, &ldquo;European and non-US markets are going to see an increase in Chinese shipments.&rdquo;</div>
<div>&ldquo;China will want to keep global market share at a high level, so will try to increase share in other markets,&rdquo; Darmet added.</div>
<h2><span>The new trade battlefield</span></h2>
<div>The shifting trade tides are testing the EU&rsquo;s core principles of economic openness. As Washington embraced a more protectionist stance, Brussels had to recalibrate its trade strategy. The EU has responded with targeted measures&mdash;such as tariffs on Chinese electric vehicles (EVs)&mdash;but has so far resisted a full-scale trade war.</div>
<div>At the heart of the trade imbalance lies China&rsquo;s aggressive industrial policy. State subsidies, particularly in the electric vehicle sector, have helped Chinese companies like BYD undercut competitors around the world. In 2024, BYD sold 4.27 million new vehicles globally, a 41 per cent jump from the previous year. Of those, 1.76 million were fully electric, putting BYD just behind Tesla in global EV sales. China&rsquo;s plug-in hybrid sales also soared 72.83 per cent to 2.49 million units.</div>
<div>The European Commission&rsquo;s move to impose duties on these heavily subsidised imports in late 2024 sparked outrage in Beijing. In retaliation, China launched an anti-dumping investigation into European dairy products, including cheese and milk&mdash;an echo of past tit-for-tat trade tensions and a sign that hostilities are broadening beyond vehicles and technology.</div>
<div>Despite these disputes, China remains the EU&rsquo;s largest trading partner, and the EU is China's second-largest. More than half of EU imports from China consist of mechanical appliances and electrical equipment, while vehicles and aircraft account for less than 6 per cent. On the export side, mechanical appliances and electrical equipment also lead, followed by vehicles and pharmaceuticals.</div>
<h2><span>Germany and France at the forefront of the storm</span></h2>
<div>Germany has been particularly impacted by the changing trade dynamics. The bilateral trade relationship with China, once marked by a German surplus, has flipped dramatically. In 2020, China had a trade deficit of over $18 billion with Germany. By 2024, that had reversed to a $12 billion surplus, and if current trends hold, China&rsquo;s surplus with Germany could exceed $25 billion in 2025.</div>
<div>One major factor has been the rapid rise in Chinese car exports, including both EVs and conventional models, while German exports to China, especially cars, have declined. Despite EU tariffs curbing EV imports, Chinese automakers have ramped up deliveries of hybrids and combustion-engine vehicles, maintaining their momentum in the European market.</div>
<div>France, too, is in the spotlight as it prepares for high-level talks with Chinese Vice Premier He Lifeng. The meeting comes after a temporary 90-day truce between Washington and Beijing, which lowered some tariffs but left many trade barriers firmly in place. European markets welcomed the pause, but economists remain wary, warning that the underlying tensions are far from resolved.</div>
<div>Meanwhile, the EU&rsquo;s trade chief Maros Sefcovic acknowledged the growing concerns last week, stating that the bloc is &ldquo;monitoring possible risks of trade diversion&rdquo;. Initial assessments are expected in mid-May, with the topic likely to dominate the agenda at Thursday&rsquo;s meeting of EU trade ministers in Brussels.</div>
<h2><span>Currency and competitiveness</span></h2>
<div>Further complicating matters is the recent weakening of the Chinese yuan, which in April 2025 hit its lowest level against the euro in more than a decade. This currency slump makes Chinese exports even more attractive to European buyers, increasing competitive pressure on domestic producers already battling deflation and sluggish demand.</div>
<div>As imports from China swell, EU exports to China are faltering. Between January 2023 and December 2024, EU exports to China dropped 12.5 per cent, while imports from China decreased by just 4.9 per cent. This decline in European exports contrasts sharply with a 3 per cent increase in exports to other non-EU countries during the same period.</div>
<div>Monthly trade data reinforces the trend: EU exports to China fell from &euro;19.2 billion ($21.5 billion) in January 2023 to &euro;16.8 billion ($18.8 billion) in December 2024, with the trade deficit peaking at &euro;29 billion ($32.5 million) in August 2024. Though imports from China also declined slightly, the overall deficit remains steep, underscoring Europe&rsquo;s dependence on Chinese goods amid weakening demand for European products in China.</div>
<h2><span>More protectionism likely?</span></h2>
<div>The evolving trade conflict has already altered the strategy of European capitals. Policymakers are increasingly under pressure to safeguard their industries&mdash;not only from Chinese competition but also from the collateral damage of US policies aimed squarely at Beijing.</div>
<div>With the global trade system becoming more fragmented, economists predict that Europe will continue to introduce more non-tariff barriers and subsidies for critical industries. The European Commission is expected to intensify efforts to prevent unfair competition, especially in sectors like automotive, green technology, and advanced manufacturing.</div>
<div>Whether Europe can maintain its identity as a bastion of free trade while protecting its industrial base in this era of geopolitical rivalry remains one of the defining challenges of the post-pandemic global economy.</div>

Business & Economy: In the first four months of 2025, China’s trade surplus with the EU surged to a record $90 billion, underlining the shift in global trade patterns

As the United States and China intensify their economic rivalry, Europe finds itself increasingly caught in the middle—vulnerable to becoming a dumping ground for Chinese goods shut out of the American market. Despite the European Union’s (EU) efforts to balance relations with both superpowers, China’s rapidly growing trade surplus with the EU is triggering alarm across the continent and exposing cracks in Europe’s open-market model. As the United States and China escalate their economic rivalry and with no long-term certain solution in sight, Europe finds itself caught in the crossfire, increasingly vulnerable to becoming a fallback market for Chinese goods squeezed out of the US economy. Despite the European Union’s (EU) efforts to maintain balanced relations with both economic giants, China’s growing trade surplus with the EU is raising alarm across the continent. In the first four months of 2025 alone, China’s trade surplus with the EU surged to a record $90 billion, underlining the shift in global trade patterns as the US imposed reciprocal tariffs on dozens of countries. With American levies on Chinese goods still up to 30 percentage points higher than they were at the start of this year, much of China’s excess production is being increasingly redirected toward Europe—some through Southeast Asia and Latin America. According to a report by Bloomberg, Maxime Darmet, senior economist at Allianz Trade, said, “European and non-US markets are going to see an increase in Chinese shipments.” “China will want to keep global market share at a high level, so will try to increase share in other markets,” Darmet added. The new trade battlefield The shifting trade tides are testing the EU’s core principles of economic openness. As Washington embraced a more protectionist stance, Brussels had to recalibrate its trade strategy. The EU has responded with targeted measures—such as tariffs on Chinese electric vehicles (EVs)—but has so far resisted a full-scale trade war. At the heart of the trade imbalance lies China’s aggressive industrial policy. State subsidies, particularly in the electric vehicle sector, have helped Chinese companies like BYD undercut competitors around the world. In 2024, BYD sold 4.27 million new vehicles globally, a 41 per cent jump from the previous year. Of those, 1.76 million were fully electric, putting BYD just behind Tesla in global EV sales. China’s plug-in hybrid sales also soared 72.83 per cent to 2.49 million units. The European Commission’s move to impose duties on these heavily subsidised imports in late 2024 sparked outrage in Beijing. In retaliation, China launched an anti-dumping investigation into European dairy products, including cheese and milk—an echo of past tit-for-tat trade tensions and a sign that hostilities are broadening beyond vehicles and technology. Despite these disputes, China remains the EU’s largest trading partner, and the EU is China's second-largest. More than half of EU imports from China consist of mechanical appliances and electrical equipment, while vehicles and aircraft account for less than 6 per cent. On the export side, mechanical appliances and electrical equipment also lead, followed by vehicles and pharmaceuticals. Germany and France at the forefront of the storm Germany has been particularly impacted by the changing trade dynamics. The bilateral trade relationship with China, once marked by a German surplus, has flipped dramatically. In 2020, China had a trade deficit of over $18 billion with Germany. By 2024, that had reversed to a $12 billion surplus, and if current trends hold, China’s surplus with Germany could exceed $25 billion in 2025. One major factor has been the rapid rise in Chinese car exports, including both EVs and conventional models, while German exports to China, especially cars, have declined. Despite EU tariffs curbing EV imports, Chinese automakers have ramped up deliveries of hybrids and combustion-engine vehicles, maintaining their momentum in the European market. France, too, is in the spotlight as it prepares for high-level talks with Chinese Vice Premier He Lifeng. The meeting comes after a temporary 90-day truce between Washington and Beijing, which lowered some tariffs but left many trade barriers firmly in place. European markets welcomed the pause, but economists remain wary, warning that the underlying tensions are far from resolved. Meanwhile, the EU’s trade chief Maros Sefcovic acknowledged the growing concerns last week, stating that the bloc is “monitoring possible risks of trade diversion”. Initial assessments are expected in mid-May, with the topic likely to dominate the agenda at Thursday’s meeting of EU trade ministers in Brussels. Currency and competitiveness Further complicating matters is the recent weakening of the Chinese yuan, which in April 2025 hit its lowest level against the euro in more than a decade. This currency slump makes Chinese exports even more attractive to European buyers, increasing competitive pressure on domestic producers already battling deflation and sluggish demand. As imports from China swell, EU exports to China are faltering. Between January 2023 and December 2024, EU exports to China dropped 12.5 per cent, while imports from China decreased by just 4.9 per cent. This decline in European exports contrasts sharply with a 3 per cent increase in exports to other non-EU countries during the same period. Monthly trade data reinforces the trend: EU exports to China fell from €19.2 billion ($21.5 billion) in January 2023 to €16.8 billion ($18.8 billion) in December 2024, with the trade deficit peaking at €29 billion ($32.5 million) in August 2024. Though imports from China also declined slightly, the overall deficit remains steep, underscoring Europe’s dependence on Chinese goods amid weakening demand for European products in China. More protectionism likely? The evolving trade conflict has already altered the strategy of European capitals. Policymakers are increasingly under pressure to safeguard their industries—not only from Chinese competition but also from the collateral damage of US policies aimed squarely at Beijing. With the global trade system becoming more fragmented, economists predict that Europe will continue to introduce more non-tariff barriers and subsidies for critical industries. The European Commission is expected to intensify efforts to prevent unfair competition, especially in sectors like automotive, green technology, and advanced manufacturing. Whether Europe can maintain its identity as a bastion of free trade while protecting its industrial base in this era of geopolitical rivalry remains one of the defining challenges of the post-pandemic global economy.

US-China trade rift may turn Europe into a dumping ground for Chinese goods

<p>In the latest move to lower&nbsp;tensions between the world's two largest economies, the United States and China have agreed to undertake frequent talks about commercial concerns and limitations on access to sophisticated technology.</p>

<p>The latest development comes&nbsp;amid U.S. Commerce Secretary Gina Raimondo's ongoing visit to China this week, where she is meeting with senior Chinese authorities in Beijing and Shanghai.</p>

<p>"I think it's a very good sign that we agreed to concrete dialogue, and I would say, more than just kind of nebulous commitments to continue to talk, this is an official channel," Raimondo said in an interview following four hours of talks with China's trade minister, Wang Wentao.</p>

<p>Raimondo said&nbsp;that she had an "open" and "pragmatic" talk with Wang and expressed worries about China's recent steps against Intel and Micron Technology, two American semiconductor companies. The Chinese government has halted a significant purchase planned by Intel and has prohibited Micron from selling in China this year.</p>

<p>She stated that two distinct conversations would be developed. One would be a working committee composed of corporate leaders that would focus on commercial concerns. The other would be federal information sharing on US export control enforcement.</p>

<p>Following the discussion, the Chinese Ministry of Commerce issued a statement saying that Wang voiced severe concerns about US tariffs on Chinese imports as well as the Biden administration's efforts to boost the US semiconductor sector through government subsidies.</p>

<p><strong>Boosting info exchange amid enforcement challenge</strong></p>

<p>Raimondo described the new discussion as an "information exchange" rather than a working group. She stated that the group was formed to provide more information regarding US export limits on sophisticated technology, but that its formation did not imply that the US would compromise on national security matters. The export enforcement group's first meeting was slated for Tuesday in Beijing.</p>

<p>Enforcement has been a challenge for the two nations, partially because it requires American authorities to perform inspections in China. China had suspended such inspections for around two years, but in the last eight months, it has authorised over 100 such checks to take place, according to the official.</p>

<p>The inspections of Chinese sites are intended to ensure that advanced American technology is not transferred to the Chinese military or security agencies.</p>

<p>The Commerce Department reported last week that 27 Chinese businesses had passed such examinations and were once again permitted to import sophisticated technology.</p>

<p>Furthermore, He Weiwen, a former Chinese commerce ministry official who is now a trade specialist at the Center for China and Globalization, a Beijing-based think tank, said the bilateral agreement to have additional talks demonstrated a shared commitment to pragmatism.</p>

<p>"It means that both sides agree on how to solve practical problems," he said, as quoted by the New York Times.</p>

<p>However, suggestions for a formal communication mechanism between the two nations sparked condemnation from some China specialists in the United States, demonstrating how politically delicate ties with China remain.</p>

<p><strong>WATCH WION LIVE HERE</strong></p>

<p><iframe allow="accelerometer; autoplay; encrypted-media; gyroscope; picture-in-picture" allowfullscreen="" frameborder="0" height="350" src="https://www.wionews.com/live-tv/embed?autoplay=1&amp;mute=1" width="100%"></iframe></p>


In the latest move to lower tensions between the world's two largest economies, the United States and China have agreed to undertake frequent talks about commercial concerns and limitations on access to sophisticated technology.

In the latest move to lower tensions between the world's two largest economies, the United States and China have agreed to undertake frequent talks about commercial concerns and limitations on access to sophisticated technology. The latest development comes amid U.S. Commerce Secretary Gina Raimondo's ongoing visit to China this week, where she is meeting with senior Chinese authorities in Beijing and Shanghai. "I think it's a very good sign that we agreed to concrete dialogue, and I would say, more than just kind of nebulous commitments to continue to talk, this is an official channel," Raimondo said in an interview following four hours of talks with China's trade minister, Wang Wentao. Raimondo said that she had an "open" and "pragmatic" talk with Wang and expressed worries about China's recent steps against Intel and Micron Technology, two American semiconductor companies. The Chinese government has halted a significant purchase planned by Intel and has prohibited Micron from selling in China this year. She stated that two distinct conversations would be developed. One would be a working committee composed of corporate leaders that would focus on commercial concerns. The other would be federal information sharing on US export control enforcement. Following the discussion, the Chinese Ministry of Commerce issued a statement saying that Wang voiced severe concerns about US tariffs on Chinese imports as well as the Biden administration's efforts to boost the US semiconductor sector through government subsidies. Boosting info exchange amid enforcement challenge Raimondo described the new discussion as an "information exchange" rather than a working group. She stated that the group was formed to provide more information regarding US export limits on sophisticated technology, but that its formation did not imply that the US would compromise on national security matters. The export enforcement group's first meeting was slated for Tuesday in Beijing. Enforcement has been a challenge for the two nations, partially because it requires American authorities to perform inspections in China. China had suspended such inspections for around two years, but in the last eight months, it has authorised over 100 such checks to take place, according to the official. The inspections of Chinese sites are intended to ensure that advanced American technology is not transferred to the Chinese military or security agencies. The Commerce Department reported last week that 27 Chinese businesses had passed such examinations and were once again permitted to import sophisticated technology. Furthermore, He Weiwen, a former Chinese commerce ministry official who is now a trade specialist at the Center for China and Globalization, a Beijing-based think tank, said the bilateral agreement to have additional talks demonstrated a shared commitment to pragmatism. "It means that both sides agree on how to solve practical problems," he said, as quoted by the New York Times. However, suggestions for a formal communication mechanism between the two nations sparked condemnation from some China specialists in the United States, demonstrating how politically delicate ties with China remain. WATCH WION LIVE HERE

US and China expand talks in effort to reduce trade tensions

<p><a href="https://www.wionews.com/business-economy/asian-stocks-stumble-china-us-trade-war-167374">Asian stocks</a> edged up on Monday, catching some of Wall Street's momentum after surprisingly strong US&nbsp;jobs data although regional gains were capped by concerns about China's economic slowdown due to the prolonged Sino-US&nbsp;trade war.</p>

<p>Japan's benchmark Nikkei added 0.4 per cent&nbsp;while MSCI's broadest index of Asia-Pacific shares outside Japan gained 0.3 per cent, with Australian stocks and South Korea's KOSPI up 0.4 per cent&nbsp;and 0.3 per cent, respectively.</p>

<p>China's Shanghai Composite stood flat and Hong Kong's Hang Seng rose 0.2 per cent.</p>

<p>Wall Street rose to near record highs on Friday on the strong jobs data and some signs of optimism about the <a href="https://www.wionews.com/opinions/us-china-trade-talks-free-trade-must-not-be-derailed-198923">US-China trade talks</a>, with the benchmark S&amp;P 500 closing within 0.2 per cent&nbsp;of its peak set in late November.</p>

<p>US&nbsp;job growth increased by the most in 10 months in November as the healthcare industry boosted hiring and production workers at General Motors returned to work after a strike, in the strongest sign that the world's largest economy is in no danger of stalling.</p>

<p>"This economy is still climbing and shattering the records for longevity," said Chris Rupkey, chief financial economist at MUFG Union Bank. "Right now, the clouds of recession still remain well offshore despite troubled economies elsewhere in the world and a trade war."</p>

<p>Top White House economic adviser Larry Kudlow said on Friday that a Dec. 15 deadline is still in place to impose a new round of US&nbsp;tariffs on Chinese consumer goods, but President Donald Trump likes where trade talks with China are going.</p>

<p>Still, investors think things could change if trade tensions escalate further, especially if Trump goes ahead with the planned tariffs on some $156 billion worth of products from China in mid-December.</p>

<p>The market has been largely working on the assumption that those tariffs, which cover several consumer products such as cellphones and toys, will be dropped or at least postponed, given that Washington and Beijing agreed in October to work on a trade deal.</p>

<p>Meanwhile, China's exports shrank for the fourth consecutive month in November, sending shivers through a market already concerned about damage being done to global demand by the trade war. But growth in imports was seen as a possible sign that Beijing's stimulus efforts over the last two years were helping to stir demand.</p>

<p>"Although the trade data did not have much impact, concerns about slowing growth and a lack of government stimulus are capping the Chinese shares' upside," said Naoki Tashiro, president of TS China Research.</p>

<p>"Yet chip-related shares are doing well, suggesting investors are still positive on the outlook of Sino-US&nbsp;trade talks overall."</p>

<p>US&nbsp;Treasury yields climbed on the strong employment report, with benchmark 10-year notes rising to 1.843 per cent.</p>

<p>The Federal Reserve's Open Market Committee (FOMC) kicks off its two-day policy meeting on Tuesday. The central bank is expected to highlight the economy's resilience and keep interest rates on hold in the range of 1.50&nbsp;per cent&nbsp;to 1.75 per cent.</p>

<p>Analysts said the much better-than-expected jobs report offset mixed signals from recent economic data and validated the Fed's wait-and-see stance on interest rates after three "insurance cuts" this year.</p>

<p>Oil prices retreated but hovered near recent peaks after OPEC and its allies agreed to deepen output cuts by 500,000 barrels per day in early 2020.</p>

<p><a href="https://www.wionews.com/business-economy/crude-oil-prices-fall-1-on-fears-for-global-economy-233148">US&nbsp;West Texas Intermediate</a> (WTI) crude slipped 0.5&nbsp;per cent&nbsp;to $58.92 per barrel, still not far from Friday's 2-1/2-month high of $59.85 per barrel, while Brent futures were down 0.3 per cent&nbsp;at $64.21 per barrel.</p>

<p>In the currency market, the dollar maintained a firm tone on Monday, with the dollar index against a basket of major currencies standing at 97.715 and the euro changing hands at $1.1055, both little changed on the day.</p>

<p>Against the Japanese yen, the dollar was last traded at 108.60 yen, flat on the day.</p>

<p>Elsewhere, British pound traded at $1.3142, not far from a seven-month high of $1.3166 set on Thursday. Versus the euro, the currency hit a 2-1/2-year high of 84.07 pence per euro on Monday.</p>

<p>Sterling has been bolstered by expectations that Prime Minister Boris Johnson's Conservative Party will win an outright majority in the upcoming election on Thursday, thereby ending a hung parliament and political paralysis on Brexit.</p>


Asian stocks edged up on Monday, catching some of Wall Street's momentum after surprisingly strong US jobs data although regional gains were capped by concerns about China's economic slowdown due to the prolonged Sino-US trade war.

Asian stocks edged up on Monday, catching some of Wall Street's momentum after surprisingly strong US jobs data although regional gains were capped by concerns about China's economic slowdown due to the prolonged Sino-US trade war. Japan's benchmark Nikkei added 0.4 per cent while MSCI's broadest index of Asia-Pacific shares outside Japan gained 0.3 per cent, with Australian stocks and South Korea's KOSPI up 0.4 per cent and 0.3 per cent, respectively. China's Shanghai Composite stood flat and Hong Kong's Hang Seng rose 0.2 per cent. Wall Street rose to near record highs on Friday on the strong jobs data and some signs of optimism about the US-China trade talks, with the benchmark S&P 500 closing within 0.2 per cent of its peak set in late November. US job growth increased by the most in 10 months in November as the healthcare industry boosted hiring and production workers at General Motors returned to work after a strike, in the strongest sign that the world's largest economy is in no danger of stalling. "This economy is still climbing and shattering the records for longevity," said Chris Rupkey, chief financial economist at MUFG Union Bank. "Right now, the clouds of recession still remain well offshore despite troubled economies elsewhere in the world and a trade war." Top White House economic adviser Larry Kudlow said on Friday that a Dec. 15 deadline is still in place to impose a new round of US tariffs on Chinese consumer goods, but President Donald Trump likes where trade talks with China are going. Still, investors think things could change if trade tensions escalate further, especially if Trump goes ahead with the planned tariffs on some $156 billion worth of products from China in mid-December. The market has been largely working on the assumption that those tariffs, which cover several consumer products such as cellphones and toys, will be dropped or at least postponed, given that Washington and Beijing agreed in October to work on a trade deal. Meanwhile, China's exports shrank for the fourth consecutive month in November, sending shivers through a market already concerned about damage being done to global demand by the trade war. But growth in imports was seen as a possible sign that Beijing's stimulus efforts over the last two years were helping to stir demand. "Although the trade data did not have much impact, concerns about slowing growth and a lack of government stimulus are capping the Chinese shares' upside," said Naoki Tashiro, president of TS China Research. "Yet chip-related shares are doing well, suggesting investors are still positive on the outlook of Sino-US trade talks overall." US Treasury yields climbed on the strong employment report, with benchmark 10-year notes rising to 1.843 per cent. The Federal Reserve's Open Market Committee (FOMC) kicks off its two-day policy meeting on Tuesday. The central bank is expected to highlight the economy's resilience and keep interest rates on hold in the range of 1.50 per cent to 1.75 per cent. Analysts said the much better-than-expected jobs report offset mixed signals from recent economic data and validated the Fed's wait-and-see stance on interest rates after three "insurance cuts" this year. Oil prices retreated but hovered near recent peaks after OPEC and its allies agreed to deepen output cuts by 500,000 barrels per day in early 2020. US West Texas Intermediate (WTI) crude slipped 0.5 per cent to $58.92 per barrel, still not far from Friday's 2-1/2-month high of $59.85 per barrel, while Brent futures were down 0.3 per cent at $64.21 per barrel. In the currency market, the dollar maintained a firm tone on Monday, with the dollar index against a basket of major currencies standing at 97.715 and the euro changing hands at $1.1055, both little changed on the day. Against the Japanese yen, the dollar was last traded at 108.60 yen, flat on the day. Elsewhere, British pound traded at $1.3142, not far from a seven-month high of $1.3166 set on Thursday. Versus the euro, the currency hit a 2-1/2-year high of 84.07 pence per euro on Monday. Sterling has been bolstered by expectations that Prime Minister Boris Johnson's Conservative Party will win an outright majority in the upcoming election on Thursday, thereby ending a hung parliament and political paralysis on Brexit.

Asian shares buoyed by Wall St rally, but China worry caps gains

China has demonstrated more than enough sincerity to reach a mutually beneficial deal and end trade tensions with the United States. However, trapped in hegemonic ideology, the U.S. has responded by unilateral and protectionist tariff hikes that put world economy in danger, according to a commentary published by China's Xinhua News Agency on Sunday.

China's utmost sincerity in trade talks a sign of strength