China's exports surged by 8.1 per cent year-on-year in April, surpassing economists&rsquo; expectations of a modest 2 per cent growth.
The strong performance came despite a significant drop in shipments to the United States, which plunged over 21 per cent amid ongoing trade tensions. While the overall export growth remains positive, the trade war with the US remains a key hurdle for China&rsquo;s economy.
Trade between the two largest economies has slowed considerably since US President Donald Trump imposed various rounds of tariffs on China. Levies on many Chinese goods now reach as high as 145 per cent&mdash;with cumulative duties on some goods soaring to a whopping 245 per cent.
Beijing has responded with 125 per cent tariffs on imports of US goods, along with other measures targeting the US.
Shipments to the US fell by more than 21 per cent in April compared to the previous year, marking a stark contrast to the overall positive performance in other regions. China&rsquo;s trade surplus with the United States was nearly $20.5 billion in April, down from about $27.2 billion a year earlier. In the first four months of the year, China&rsquo;s exports to the US dropped 2.5 per cent from a year earlier, while imports from the US fell 4.7 per cent.
The Association of Southeast Asian Nations saw a significant surge of 20.8 per cent in April from a year earlier, accelerating from 11.6 per cent growth in March. Exports to Latin America also climbed 11.5 per cent. Shipments to India jumped nearly 16 per cent by value, and exports to Africa surged 15 per cent. The surge in trade with countries such as Vietnam, Malaysia, Indonesia, and Thailand helped mitigate the impact of declining demand from the US, highlighting China's shifting focus on diversifying its trade partnerships.
China&rsquo;s exports to the European Union rose 8.3 per cent, while imports fell 16.5 per cent year-on-year. Exports had risen by 10.3 per cent, while imports had dropped 7.5 per cent in March.
&nbsp;
<h2 dir="ltr">The upcoming trade talks</h2>
The upcoming meeting between US and Chinese officials in Switzerland over the weekend has raised the prospects for a potential de-escalation in the ongoing trade war.
The planned meeting would mark the first high-level US-China trade talks since the latest tariff escalations in April. US Senator Steve Daines met Chinese Premier Li Qiang in Beijing in March.
While reaching a comprehensive deal is likely to be complex and time-consuming, a phased rollback of tariffs from both sides is possible, although analysts are split on the pace of such de-escalation.
&nbsp;
<h2 dir="ltr">Broader impact on the Chinese economy</h2>
Chinese authorities have intensified their stimulus efforts recently to mitigate the economic impact of tariffs. These actions include loosening monetary policy and providing support to businesses affected by tariffs.
In April, China&rsquo;s factory activity dropped to its lowest level in 16 months, with new export orders falling to their weakest point since December 2022.
There are growing concerns that the negative effects of tariffs may soon affect the job market, with Goldman Sachs estimating that China could lose 16 million jobs&mdash;about 2 per cent of its workforce&mdash;in sectors tied to US-bound goods.
The latest purchasing managers' index (PMI) reveals a decline in employment across various sectors, as manufacturers cut back on production and put workers on paid leave.
To support exporters hit by tariffs, local Chinese governments and large companies have expressed willingness to help redirect their goods to the domestic market. However, this is expected to increase deflationary pressures in the country.

Business & Economy: China's exports surged by 8.1 per cent year-on-year in April, surpassing economists’ expectations of a modest 2 per cent growth.

China's exports surged by 8.1 per cent year-on-year in April, surpassing economists’ expectations of a modest 2 per cent growth. The strong performance came despite a significant drop in shipments to the United States, which plunged over 21 per cent amid ongoing trade tensions. While the overall export growth remains positive, the trade war with the US remains a key hurdle for China’s economy. Trade between the two largest economies has slowed considerably since US President Donald Trump imposed various rounds of tariffs on China. Levies on many Chinese goods now reach as high as 145 per cent—with cumulative duties on some goods soaring to a whopping 245 per cent. Beijing has responded with 125 per cent tariffs on imports of US goods, along with other measures targeting the US. Shipments to the US fell by more than 21 per cent in April compared to the previous year, marking a stark contrast to the overall positive performance in other regions. China’s trade surplus with the United States was nearly $20.5 billion in April, down from about $27.2 billion a year earlier. In the first four months of the year, China’s exports to the US dropped 2.5 per cent from a year earlier, while imports from the US fell 4.7 per cent. The Association of Southeast Asian Nations saw a significant surge of 20.8 per cent in April from a year earlier, accelerating from 11.6 per cent growth in March. Exports to Latin America also climbed 11.5 per cent. Shipments to India jumped nearly 16 per cent by value, and exports to Africa surged 15 per cent. The surge in trade with countries such as Vietnam, Malaysia, Indonesia, and Thailand helped mitigate the impact of declining demand from the US, highlighting China's shifting focus on diversifying its trade partnerships. China’s exports to the European Union rose 8.3 per cent, while imports fell 16.5 per cent year-on-year. Exports had risen by 10.3 per cent, while imports had dropped 7.5 per cent in March. The upcoming trade talks The upcoming meeting between US and Chinese officials in Switzerland over the weekend has raised the prospects for a potential de-escalation in the ongoing trade war. The planned meeting would mark the first high-level US-China trade talks since the latest tariff escalations in April. US Senator Steve Daines met Chinese Premier Li Qiang in Beijing in March. While reaching a comprehensive deal is likely to be complex and time-consuming, a phased rollback of tariffs from both sides is possible, although analysts are split on the pace of such de-escalation. Broader impact on the Chinese economy Chinese authorities have intensified their stimulus efforts recently to mitigate the economic impact of tariffs. These actions include loosening monetary policy and providing support to businesses affected by tariffs. In April, China’s factory activity dropped to its lowest level in 16 months, with new export orders falling to their weakest point since December 2022. There are growing concerns that the negative effects of tariffs may soon affect the job market, with Goldman Sachs estimating that China could lose 16 million jobs—about 2 per cent of its workforce—in sectors tied to US-bound goods. The latest purchasing managers' index (PMI) reveals a decline in employment across various sectors, as manufacturers cut back on production and put workers on paid leave. To support exporters hit by tariffs, local Chinese governments and large companies have expressed willingness to help redirect their goods to the domestic market. However, this is expected to increase deflationary pressures in the country.

China's exports surge amid decline in shipments to the US as trade war intensifies

<div class="x_elementToProof">The stage is set for a high-stakes round of trade negotiations between the United States and China this weekend, with officials from both sides arriving in Geneva for what could be a turning point in their long-running tariff war.</div>
<div class="x_elementToProof"></div>
<div class="x_elementToProof">Slated to begin on May 10, the talks come at a time of deepening economic friction&mdash;friction that&rsquo;s rattled global supply chains, commodity markets, and investor confidence. According to Reuters, US Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer will lead the American delegation, while China&rsquo;s Vice Premier He Lifeng will represent Beijing.</div>
<div class="x_elementToProof"></div>
<div class="x_elementToProof">This is the first formal engagement between the two powers since Donald Trump returned to the White House, making it a critical moment for both bilateral relations and the broader global economy.</div>
<div class="x_elementToProof"></div>
<h2 class="x_elementToProof">Why Geneva?</h2>
<div class="x_elementToProof">According to Bloomberg, Geneva was chosen to underscore neutrality and multilateralism. The city is home to the World Trade Organization (WTO) and has historically served as a venue for tense international negotiations. For Washington and Beijing, it offers diplomatic cover, toning down the nationalism that&rsquo;s often flared in meetings held in their own capitals.</div>
<div class="x_elementToProof"></div>
<h2 class="x_elementToProof">Backdrop: The tariff tussle</h2>
<div class="x_elementToProof">Tensions flared in April 2025 when President Trump imposed a 145 per cent tariff on Chinese imports, citing national security and trade imbalances. Beijing responded swiftly with 125 per cent tariffs on US goods, sending bilateral trade into a nosedive.</div>
<div class="x_elementToProof"></div>
<div class="x_elementToProof">Despite the harsh rhetoric, there&rsquo;s still interest in dialogue. China&rsquo;s Ministry of Commerce said it is &ldquo;evaluating&rdquo; the US outreach but pushed back against &ldquo;pressure tactics.&rdquo; On May 5, spokesperson He Yongqian made Beijing&rsquo;s stance clear: &ldquo;Pressure, threats, and blackmail are not the way to deal with China. We hope the two countries will meet halfway and resolve differences through dialogue, based on mutual respect and win-win cooperation.&rdquo;</div>
<div class="x_elementToProof"></div>
<div class="x_elementToProof">Beijing has also reiterated that it&rsquo;s ready to &ldquo;fight to the end&rdquo; if provoked. But even as it talks tough, China is bolstering its domestic economy to withstand the pressure&mdash;encouraging foreign firms to tap into its massive local market and boosting domestic consumption.</div>
<div class="x_elementToProof"></div>
<h2 class="x_elementToProof">Impact of the trade war</h2>
<div class="x_elementToProof">The tariff war is no longer just diplomatic theater&mdash;it&rsquo;s biting into real economies.</div>
<div class="x_elementToProof"></div>
<div class="x_elementToProof">In China, the services sector&mdash;a major employer and a barometer of consumer confidence&mdash;is faltering. As reported by Reuters, the Caixin/S&amp;P Global Services PMI slipped to 50.7 in April 2025 from 51.9 in March, while the official PMI dropped to 50.1 from 50.3. Both figures signal slowing growth. With nearly 50 per cent of China&rsquo;s workforce in services, this deceleration raises red flags.</div>
<div class="x_elementToProof"></div>
<div class="x_elementToProof">Trade data adds to the concern. According to China&rsquo;s General Administration of Customs, exports to the US dropped 17.6 per cent from March to April, plunging from $ 40.1 billion to $ 33.0 billion&mdash;the lowest in five years. This sharp fall shows how deeply tariffs are cutting into cross-border commerce.</div>
<div class="x_elementToProof"></div>
<div class="x_elementToProof">To counter this, the People&rsquo;s Bank of China (PBOC) has eased monetary policy. China Daily reports the PBOC lowered the seven-day reverse repo rate by 10 basis points to 1.40 per cent and cut the reserve requirement ratio (RRR) by 50 basis points, injecting about 1,000 billion yuan ( $ 138.6 billion) into the economy.</div>
<div class="x_elementToProof"></div>
<div class="x_elementToProof">According to data published by China's General Administration of Customs. China's exports to the US fell 17.6 per cent month-on-month in April. This comes as Beijing navigates a high-stakes trade war with Washington. While the shipments to the US totalled $33.0 billion last month, falling from $40.1 billion in March.</div>
<div class="x_elementToProof"></div>
<div class="x_elementToProof">Meanwhile in the US, the costs of the trade war are also mounting. In March 2025, the US Census Bureau recorded the country&rsquo;s largest-ever trade deficit: $ 140.5 billion. This spike was largely due to a 4.4 per cent surge in imports, as businesses rushed to stock up on goods&mdash;especially pharmaceuticals&mdash;before Trump&rsquo;s tariffs took effect. On the other hand, exports remained flat.</div>
<div class="x_elementToProof"></div>
<div class="x_elementToProof">That stockpiling is already backfiring. The US economy shrank by 0.3 per cent in Q1 2025, its first contraction in three years. Economists warn that as inventories are depleted and trade slows, domestic production could suffer and inflation could rise.</div>
<div class="x_elementToProof"></div>
<div class="x_elementToProof">Citing this uncertainty, the Federal Reserve on May 7 held interest rates steady at 4.25 to 4.50 per cent. Fed Chair Jerome Powell said the central bank will &ldquo;monitor the data closely&rdquo; before making any further moves, highlighting the risk of economic fallout from prolonged</div>
<div class="x_elementToProof"></div>

Business & Economy: This meeting marks the first official dialogue since Donald Trump resumed his presidency, highlighting its significance for US-China relations and the global economy.

The stage is set for a high-stakes round of trade negotiations between the United States and China this weekend, with officials from both sides arriving in Geneva for what could be a turning point in their long-running tariff war. Slated to begin on May 10, the talks come at a time of deepening economic friction—friction that’s rattled global supply chains, commodity markets, and investor confidence. According to Reuters, US Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer will lead the American delegation, while China’s Vice Premier He Lifeng will represent Beijing. This is the first formal engagement between the two powers since Donald Trump returned to the White House, making it a critical moment for both bilateral relations and the broader global economy. Why Geneva? According to Bloomberg, Geneva was chosen to underscore neutrality and multilateralism. The city is home to the World Trade Organization (WTO) and has historically served as a venue for tense international negotiations. For Washington and Beijing, it offers diplomatic cover, toning down the nationalism that’s often flared in meetings held in their own capitals. Backdrop: The tariff tussle Tensions flared in April 2025 when President Trump imposed a 145 per cent tariff on Chinese imports, citing national security and trade imbalances. Beijing responded swiftly with 125 per cent tariffs on US goods, sending bilateral trade into a nosedive. Despite the harsh rhetoric, there’s still interest in dialogue. China’s Ministry of Commerce said it is “evaluating” the US outreach but pushed back against “pressure tactics.” On May 5, spokesperson He Yongqian made Beijing’s stance clear: “Pressure, threats, and blackmail are not the way to deal with China. We hope the two countries will meet halfway and resolve differences through dialogue, based on mutual respect and win-win cooperation.” Beijing has also reiterated that it’s ready to “fight to the end” if provoked. But even as it talks tough, China is bolstering its domestic economy to withstand the pressure—encouraging foreign firms to tap into its massive local market and boosting domestic consumption. Impact of the trade war The tariff war is no longer just diplomatic theater—it’s biting into real economies. In China, the services sector—a major employer and a barometer of consumer confidence—is faltering. As reported by Reuters, the Caixin/S&P Global Services PMI slipped to 50.7 in April 2025 from 51.9 in March, while the official PMI dropped to 50.1 from 50.3. Both figures signal slowing growth. With nearly 50 per cent of China’s workforce in services, this deceleration raises red flags. Trade data adds to the concern. According to China’s General Administration of Customs, exports to the US dropped 17.6 per cent from March to April, plunging from $ 40.1 billion to $ 33.0 billion—the lowest in five years. This sharp fall shows how deeply tariffs are cutting into cross-border commerce. To counter this, the People’s Bank of China (PBOC) has eased monetary policy. China Daily reports the PBOC lowered the seven-day reverse repo rate by 10 basis points to 1.40 per cent and cut the reserve requirement ratio (RRR) by 50 basis points, injecting about 1,000 billion yuan ( $ 138.6 billion) into the economy. According to data published by China's General Administration of Customs. China's exports to the US fell 17.6 per cent month-on-month in April. This comes as Beijing navigates a high-stakes trade war with Washington. While the shipments to the US totalled $33.0 billion last month, falling from $40.1 billion in March. Meanwhile in the US, the costs of the trade war are also mounting. In March 2025, the US Census Bureau recorded the country’s largest-ever trade deficit: $ 140.5 billion. This spike was largely due to a 4.4 per cent surge in imports, as businesses rushed to stock up on goods—especially pharmaceuticals—before Trump’s tariffs took effect. On the other hand, exports remained flat. That stockpiling is already backfiring. The US economy shrank by 0.3 per cent in Q1 2025, its first contraction in three years. Economists warn that as inventories are depleted and trade slows, domestic production could suffer and inflation could rise. Citing this uncertainty, the Federal Reserve on May 7 held interest rates steady at 4.25 to 4.50 per cent. Fed Chair Jerome Powell said the central bank will “monitor the data closely” before making any further moves, highlighting the risk of economic fallout from prolonged

US-China trade talk: Will weekend Geneva meet tackle tariff deadlock?

China&rsquo;s central bank is taking steps to stimulate the economy by cutting key policy rates in a bid to boost growth amid growing economic uncertainty and trade woes.
The People's Bank of China (PBOC) said that it would lower the borrowing cost of its seven-day reverse repurchase rates by 10 basis points to 1.40 per cent from 1.50 per cent, according to an online statement, taking effect from May 08.
The seven-day reverse repo rate now serves as the economy's main policy rate. A reduction in the borrowing cost could lead to similar cuts to other market rates and interest rates on other liquidity tools. The PBOC previously lowered the seven-day reverse repo rate by 20 basis points (bps) in September 2024.
The central bank will also lower the reserve requirement ratio (RRR), which determines the amount of cash banks must hold in reserves, by 50 basis points, which will give additional liquidity of 1000 billion yuan ($138.6 billion) to the market.
PBOC Governor Pan Gongsheng reiterated that officials will implement a &ldquo;moderately loose&rdquo; monetary policy, which will translate into ample liquidity and ensure funding with relatively low financing costs. The RRR cut can enhance the stability of bank liabilities, he said.
This move is notable as China has focused more on stabilising its currency and managing bond market risks, rather than stimulating growth. But with the economy under pressure from trade tensions and internal demand softness, priorities are shifting. 
<h2 dir="ltr">U.S.-China trade talk</h2>
The timing is significant as China&rsquo;s Vice Premier He Lifeng is scheduled to meet U.S. Treasury Secretary Scott Bessent later this week in Switzerland&mdash;the first confirmed trade talks between the countries since President Donald Trump announced sweeping tariffs, led by punishing levies on China.
Bessent, in an interview on Fox News, said the talks will centre on de-escalation rather than a big trade deal. And President Trump also recently said that he is willing to lower tariffs on China at some point, but also said this week that the U.S. is &ldquo;losing nothing&rdquo; by not trading with Beijing.
After the talks were announced, China&rsquo;s Ministry of Commerce said in a statement that the U.S. should &ldquo;show sincerity&rdquo; in the upcoming talks, correct wrong practices and resolve the concerns of both sides through &ldquo;equal consultation&rdquo;.
The two nations have locked horns ever since Trump ratcheted up tariffs on Chinese goods to 145 per cent, prompting Beijing to retaliate with additional levies of 125 per cent on imports from the U.S.
&nbsp;
<h2 dir="ltr">Other key announcements</h2>
In a broader push to stabilise growth, China has also announced measures to support several key sectors, including technology and real estate, along with establishing a 500-billion-yuan (almost $692 million) relending tool for services consumption and elderly care. It has been announced that the quota for technology relending loans will increase to 800 billion yuan (approximately $1.1 billion) to support equipment upgrading, a consumer goods trade-in programme.
The country&rsquo;s central bank plans to cut the mortgage rates under China&rsquo;s housing provident fund, a government-backed housing lender, by 25 basis points, and the rates on five-year loans for first-time homebuyers will be trimmed to 2.6 per cent from 2.85 per cent. PBOC will also gradually lower the amount of cash that auto financial companies and leasing firms must hold in reserves to zero from the current 5 per cent.
PBOC expanded the allowance for the relending tool for agriculture and small and medium-sized enterprises by 300 billion yuan (around $415 million), along with combining two stock market support tools with a total quota of 800 billion yuan (about $1.1 billion).
A debt risk-sharing tool will also be created, allowing the PBOC to provide low-cost relending funds to encourage purchases of bonds of technology firms.
China is preparing more measures to support small and medium enterprises and the private sector, which will be announced soon, Li Yunze, the head of the financial regulatory administration, said at the briefing.
The broad stimulus announcement showed the officials were acting with greater urgency to bolster the economy. Beijing had largely opted for piecemeal stimulus measures this year, while hinting that it had sufficient policy firepower to use &ldquo;when appropriate&rdquo;. 
(With inputs from agencies)

Business & Economy: PBOC lowers the borrowing cost of its seven-day reverse repurchase rates by 10 basis points to 1.40 per cent, taking effect from May 08.

China’s central bank is taking steps to stimulate the economy by cutting key policy rates in a bid to boost growth amid growing economic uncertainty and trade woes. The People's Bank of China (PBOC) said that it would lower the borrowing cost of its seven-day reverse repurchase rates by 10 basis points to 1.40 per cent from 1.50 per cent, according to an online statement, taking effect from May 08. The seven-day reverse repo rate now serves as the economy's main policy rate. A reduction in the borrowing cost could lead to similar cuts to other market rates and interest rates on other liquidity tools. The PBOC previously lowered the seven-day reverse repo rate by 20 basis points (bps) in September 2024. The central bank will also lower the reserve requirement ratio (RRR), which determines the amount of cash banks must hold in reserves, by 50 basis points, which will give additional liquidity of 1000 billion yuan ($138.6 billion) to the market. PBOC Governor Pan Gongsheng reiterated that officials will implement a “moderately loose” monetary policy, which will translate into ample liquidity and ensure funding with relatively low financing costs. The RRR cut can enhance the stability of bank liabilities, he said. This move is notable as China has focused more on stabilising its currency and managing bond market risks, rather than stimulating growth. But with the economy under pressure from trade tensions and internal demand softness, priorities are shifting. U.S.-China trade talk The timing is significant as China’s Vice Premier He Lifeng is scheduled to meet U.S. Treasury Secretary Scott Bessent later this week in Switzerland—the first confirmed trade talks between the countries since President Donald Trump announced sweeping tariffs, led by punishing levies on China. Bessent, in an interview on Fox News, said the talks will centre on de-escalation rather than a big trade deal. And President Trump also recently said that he is willing to lower tariffs on China at some point, but also said this week that the U.S. is “losing nothing” by not trading with Beijing. After the talks were announced, China’s Ministry of Commerce said in a statement that the U.S. should “show sincerity” in the upcoming talks, correct wrong practices and resolve the concerns of both sides through “equal consultation”. The two nations have locked horns ever since Trump ratcheted up tariffs on Chinese goods to 145 per cent, prompting Beijing to retaliate with additional levies of 125 per cent on imports from the U.S. Other key announcements In a broader push to stabilise growth, China has also announced measures to support several key sectors, including technology and real estate, along with establishing a 500-billion-yuan (almost $692 million) relending tool for services consumption and elderly care. It has been announced that the quota for technology relending loans will increase to 800 billion yuan (approximately $1.1 billion) to support equipment upgrading, a consumer goods trade-in programme. The country’s central bank plans to cut the mortgage rates under China’s housing provident fund, a government-backed housing lender, by 25 basis points, and the rates on five-year loans for first-time homebuyers will be trimmed to 2.6 per cent from 2.85 per cent. PBOC will also gradually lower the amount of cash that auto financial companies and leasing firms must hold in reserves to zero from the current 5 per cent. PBOC expanded the allowance for the relending tool for agriculture and small and medium-sized enterprises by 300 billion yuan (around $415 million), along with combining two stock market support tools with a total quota of 800 billion yuan (about $1.1 billion). A debt risk-sharing tool will also be created, allowing the PBOC to provide low-cost relending funds to encourage purchases of bonds of technology firms. China is preparing more measures to support small and medium enterprises and the private sector, which will be announced soon, Li Yunze, the head of the financial regulatory administration, said at the briefing. The broad stimulus announcement showed the officials were acting with greater urgency to bolster the economy. Beijing had largely opted for piecemeal stimulus measures this year, while hinting that it had sufficient policy firepower to use “when appropriate”. (With inputs from agencies)

China cuts key rates, boosts liquidity ahead of US trade talk

A couple of days after proposing universal tariffs of 25 per cent on autos, drugs and pharma imports, US President Donald Trump hinted at a trade deal with China. <o:p></o:p>Trump said a trade deal with China is "possible," even though Beijing is one of the key targets of his tariff rhetoric. The president had agreed to "A great trade deal with China" in 2020.<o:p></o:p>
However, as soon as he was in the white house, trump announced sweeping tariffs on foes and allies. And since then, has shown that he wants a deal and not a war. One can say he is getting a deal based on how things have turned out since his threats of import taxes. <o:p></o:p>India, for example, has given him some concessions and is rushing for a trade deal with the US before his reciprocal and other tariffs kick in. Trump's argument for trade levies is to lower the massive US trade deficit.&nbsp;<o:p></o:p>
<h2 class="MsoNormal">Beijing says 'tariff wars produce no winners'<o:p></o:p></h2>
While Beijing has retaliated with tit-for-tat tariffs on US imports in response to trump's hint of a China deal, Beijing said there are no winners in a trade war. That gives hope of a trade deal sooner rather than later. <o:p></o:p>Data shows that China has the largest trade surplus with the United States in goods&mdash;295.4 billion dollars in 2024. Separately, the European union has responded to trump's tariffs with a promise of similar taxes.<o:p></o:p>
However, the EU trade chief has also signalled the bloc's willingness to negotiate a deal. Within the 27-nation EU, Germany has by far the largest trade surplus with the United States. <o:p></o:p>That is mainly because of the German automobile industry and chemical giants. Still, with trump using the zero-sum mentality more as a strategy, hopes for US trade deals with trading partners have risen.&nbsp;<o:p></o:p>
(With inputs from the agencies)<o:p></o:p>

Business & Economy: Trump said a trade deal with China is "possible," even though Beijing is one of the key targets of his tariff rhetoric. The president had agreed to "A great trade deal with China" in 2020.

A couple of days after proposing universal tariffs of 25 per cent on autos, drugs and pharma imports, US President Donald Trump hinted at a trade deal with China. Trump said a trade deal with China is "possible," even though Beijing is one of the key targets of his tariff rhetoric. The president had agreed to "A great trade deal with China" in 2020. However, as soon as he was in the white house, trump announced sweeping tariffs on foes and allies. And since then, has shown that he wants a deal and not a war. One can say he is getting a deal based on how things have turned out since his threats of import taxes. India, for example, has given him some concessions and is rushing for a trade deal with the US before his reciprocal and other tariffs kick in. Trump's argument for trade levies is to lower the massive US trade deficit. Beijing says 'tariff wars produce no winners' While Beijing has retaliated with tit-for-tat tariffs on US imports in response to trump's hint of a China deal, Beijing said there are no winners in a trade war. That gives hope of a trade deal sooner rather than later. Data shows that China has the largest trade surplus with the United States in goods—295.4 billion dollars in 2024. Separately, the European union has responded to trump's tariffs with a promise of similar taxes. However, the EU trade chief has also signalled the bloc's willingness to negotiate a deal. Within the 27-nation EU, Germany has by far the largest trade surplus with the United States. That is mainly because of the German automobile industry and chemical giants. Still, with trump using the zero-sum mentality more as a strategy, hopes for US trade deals with trading partners have risen. (With inputs from the agencies)

Trump floats another idea on trade, this time with China

Donald Trump’s trade and foreign policy team is taking a hawkish stance toward China. Due to this US companies are increasingly concerned that a strict approach towards China can&nbsp;stunt the prospects of the US companies&nbsp;in the world’s second-largest economy. They might also turn into clear targets for China's retaliation against any Trump tariffs, according to a detailed report by CNBC.

Trump has threatened 60 per cent tariffs on China

Trump has threatened to hit China with 60 per cent tariffs and has pledged to end reliance on the country. This step alone will be disruptive. It will force companies to scramble to find other sources of supply, American consumers to pay higher prices at the store, and, according to many experts, lead to job losses. On top of that, the Chinese government could respond with expanded steps and measures to target American businesses elaborated the CNBC report further.

China might view US steps as an Economic war

“The Trump administration’s actions may be seen or may be interpreted as economic war,” Scott Kennedy, senior advisor at the Center for Strategic and International Studies, told reporters in Beijing on Thursday. “If they are interpreted in that way, China might have a much more vigorous response, not limited to tariffs.”

Further, those actions could range from economic changes to matters of diplomacy and security, Kennedy said, adding China may “push back as hard as they can.”

More combative relations between the US and China also bring the risk of public backlash amid rising Chinese nationalism. The Chinese government has strong controls over information flow which has led to consumer boycotts of international brands. This will basically put both the economies in direct competition with each other.

Impact of US-China trade war&nbsp;

During Trump’s first term, the Chinese government retaliated against US&nbsp;tariffs by imposing tariffs on US imports. The US-China Business Council, in conjunction with Oxford Economics, estimates a new tit-for-tat tariff battle could result in a “permanent loss of revenue and pressure businesses to slash jobs and investment plans” with as many as 801,000 net job losses by 2025.

The report projected that Nevada, Florida and Arizona would be among the states hardest hit by such tariffs due to their economic reliance on consumer demand. Manufacturing states such as Indiana, Kansas, Michigan and Ohio would also be vulnerable, the Oxford report found. Swing states Nevada, Arizona and Michigan all flipped to Trump in the 2024 election, helping to deliver him back to the White House.

During the last trade battle, China also stopped buying agricultural products from the US. The move targeted key US exports like soybeans, disproportionately hurting rural parts of the U.S. where Trump has strong support. James McGregor, a business consultant on China for three decades, said he sees Beijing using its leverage on US&nbsp;agricultural purchases if it feels pressed this time, too.

“China is already focused on ridding itself of dependence on US farm products. If alternative supplies are available, China may well shift away from American farmers where they can,” McGregor said, added the CNBC report.

Two years ago, China started importing corn from Brazil. The country is now China’s biggest supplier of corn, surpassing the US. Beijing could also broaden its retribution methods to include targeting US companies operating on Chinese soil. Then there’s also the risk of legal and regulatory changes in China that could threaten US companies. In recent years, China made significant revisions to its export control regulations. Those tighter controls have restricted critical metals for the American clean energy and semiconductor sectors.

Market participants and global investors will closely follow these developments and the ultimate stance of the Trump administration against China. This will help them in understanding the future trajectory of the US-China relations along with helping them in making informed investment decisions.

&nbsp;

Donald Trump’s trade and foreign policy team is taking a hawkish stance toward China. Due to this US companies are increasingly concerned that a strict approach towards China can stunt the prospects of the US companies in the world’s second-largest economy.

Donald Trump’s trade and foreign policy team is taking a hawkish stance toward China. Due to this US companies are increasingly concerned that a strict approach towards China can stunt the prospects of the US companies in the world’s second-largest economy. They might also turn into clear targets for China's retaliation against any Trump tariffs, according to a detailed report by CNBC. Trump has threatened 60 per cent tariffs on China Trump has threatened to hit China with 60 per cent tariffs and has pledged to end reliance on the country. This step alone will be disruptive. It will force companies to scramble to find other sources of supply, American consumers to pay higher prices at the store, and, according to many experts, lead to job losses. On top of that, the Chinese government could respond with expanded steps and measures to target American businesses elaborated the CNBC report further. China might view US steps as an Economic war “The Trump administration’s actions may be seen or may be interpreted as economic war,” Scott Kennedy, senior advisor at the Center for Strategic and International Studies, told reporters in Beijing on Thursday. “If they are interpreted in that way, China might have a much more vigorous response, not limited to tariffs.” Further, those actions could range from economic changes to matters of diplomacy and security, Kennedy said, adding China may “push back as hard as they can.” More combative relations between the US and China also bring the risk of public backlash amid rising Chinese nationalism. The Chinese government has strong controls over information flow which has led to consumer boycotts of international brands. This will basically put both the economies in direct competition with each other. Impact of US-China trade war During Trump’s first term, the Chinese government retaliated against US tariffs by imposing tariffs on US imports. The US-China Business Council, in conjunction with Oxford Economics, estimates a new tit-for-tat tariff battle could result in a “permanent loss of revenue and pressure businesses to slash jobs and investment plans” with as many as 801,000 net job losses by 2025. The report projected that Nevada, Florida and Arizona would be among the states hardest hit by such tariffs due to their economic reliance on consumer demand. Manufacturing states such as Indiana, Kansas, Michigan and Ohio would also be vulnerable, the Oxford report found. Swing states Nevada, Arizona and Michigan all flipped to Trump in the 2024 election, helping to deliver him back to the White House. During the last trade battle, China also stopped buying agricultural products from the US. The move targeted key US exports like soybeans, disproportionately hurting rural parts of the U.S. where Trump has strong support. James McGregor, a business consultant on China for three decades, said he sees Beijing using its leverage on US agricultural purchases if it feels pressed this time, too. “China is already focused on ridding itself of dependence on US farm products. If alternative supplies are available, China may well shift away from American farmers where they can,” McGregor said, added the CNBC report. Two years ago, China started importing corn from Brazil. The country is now China’s biggest supplier of corn, surpassing the US. Beijing could also broaden its retribution methods to include targeting US companies operating on Chinese soil. Then there’s also the risk of legal and regulatory changes in China that could threaten US companies. In recent years, China made significant revisions to its export control regulations. Those tighter controls have restricted critical metals for the American clean energy and semiconductor sectors. Market participants and global investors will closely follow these developments and the ultimate stance of the Trump administration against China. This will help them in understanding the future trajectory of the US-China relations along with helping them in making informed investment decisions.

China's retaliation could target US companies over Trump actions

The United States has finalised regulations limiting investments in key technology sectors in China, including artificial intelligence and semiconductors, due to national security concerns. The announcement from the Treasury Department, reported by Reuters, outlines a significant shift in the US approach to foreign investment in critical technologies.

Starting January 2, US citizens, permanent residents, and companies based in the US will be prohibited from engaging in transactions involving advanced technologies such as AI, quantum computing, and semiconductors. Furthermore, US investors will be required to notify the Treasury of investments in less advanced technologies that could still pose national security risks.

Paul Rosen, the assistant secretary of the Treasury for Investment Security, emphasized the importance of these measures, stating, "US investment must not be exploited to advance the development of key technologies that could threaten our national security."

He highlighted that US investments often include intangible benefits like managerial expertise and access to talent networks, which should not aid countries perceived as adversaries in enhancing their military, intelligence, or cyber capabilities.

These restrictions follow President Joe Biden's executive order from last year, which aimed to curb investments in semiconductors, microelectronics, quantum computing, and specific AI technologies. Biden expressed concerns that US investments might inadvertently support adversarial nations in developing sensitive technologies essential for military and intelligence operations.

In response, China's Ministry of Foreign Affairs condemned the executive order, labelling it an anti-globalization and de-sinicization effort. The ministry expressed strong dissatisfaction and firmly opposed the US stance, asserting that China has lodged formal complaints regarding the investment restrictions.

The US government's decision reflects growing apprehension about China's technological advancements and their potential military applications. By limiting investments in critical sectors, the US aims to safeguard its national interests and prevent adversaries from gaining an upper hand in emerging technologies that are vital to national security.

As the geopolitical landscape continues to evolve, these new investment restrictions mark a significant step in the ongoing tension between the US and China. The implications of these regulations will likely reverberate across the global tech industry, affecting not only US investors but also foreign companies engaged in similar sectors. The push for a more cautious approach to technology transfer highlights the increasing prioritization of national security in economic policy.

The United States has finalised regulations limiting investments in key technology sectors in China, including artificial intelligence and semiconductors, due to national security concerns.

The United States has finalised regulations limiting investments in key technology sectors in China, including artificial intelligence and semiconductors, due to national security concerns. The announcement from the Treasury Department, reported by Reuters, outlines a significant shift in the US approach to foreign investment in critical technologies. Starting January 2, US citizens, permanent residents, and companies based in the US will be prohibited from engaging in transactions involving advanced technologies such as AI, quantum computing, and semiconductors. Furthermore, US investors will be required to notify the Treasury of investments in less advanced technologies that could still pose national security risks. Paul Rosen, the assistant secretary of the Treasury for Investment Security, emphasized the importance of these measures, stating, "US investment must not be exploited to advance the development of key technologies that could threaten our national security." He highlighted that US investments often include intangible benefits like managerial expertise and access to talent networks, which should not aid countries perceived as adversaries in enhancing their military, intelligence, or cyber capabilities. These restrictions follow President Joe Biden's executive order from last year, which aimed to curb investments in semiconductors, microelectronics, quantum computing, and specific AI technologies. Biden expressed concerns that US investments might inadvertently support adversarial nations in developing sensitive technologies essential for military and intelligence operations. In response, China's Ministry of Foreign Affairs condemned the executive order, labelling it an anti-globalization and de-sinicization effort. The ministry expressed strong dissatisfaction and firmly opposed the US stance, asserting that China has lodged formal complaints regarding the investment restrictions. The US government's decision reflects growing apprehension about China's technological advancements and their potential military applications. By limiting investments in critical sectors, the US aims to safeguard its national interests and prevent adversaries from gaining an upper hand in emerging technologies that are vital to national security. As the geopolitical landscape continues to evolve, these new investment restrictions mark a significant step in the ongoing tension between the US and China. The implications of these regulations will likely reverberate across the global tech industry, affecting not only US investors but also foreign companies engaged in similar sectors. The push for a more cautious approach to technology transfer highlights the increasing prioritization of national security in economic policy.

US implements new investment restrictions on AI and semiconductors in China

The Finance Minister of Germany Christian Lindner recently warned that if the US kicked off a trade war with the European Union (EU), there could be retaliation, as detailed in a report by CNBC.

He further stated that “Trade controversy sees never winners, only losers,” Lindner told CNBC in an exclusive conversation on the sidelines of the International Monetary Fund’s annual meeting in Washington, DC.

What US trade policy could look like if Donald Trump were elected as president is a key issue, Lindner suggested. “In that case we need diplomatic efforts to convince whoever enters the White House that it’s not in the best interest of the US to have a trade conflict with the European Union. We would have to consider retaliation,” he said. Lindner belongs to the pro-business Free Democratic Party which is currently in coalition with Chancellor Olaf Scholz’s Social Democratic Party.

The US′ problem with trading lies with China rather than the EU, Lindner said, adding that the EU “should not become a negative side effect” of controversy between the US and China.

Trump has floated the idea of tariffs<o:p></o:p>

Trump has floated the idea that, if he were elected, blanket tariffs of 10 per cent to 20 per cent could be imposed on almost all imports, no matter where they came from.

If such a 20 per cent tariff were implemented by the US, the EU’s and Germany’s gross domestic product would fall in the coming years, Reuters reported on October 24 citing a study by German economic institute IW. Trade is one of the main pillars of the German economy, suggesting heightened tensions, uncertainty and tariffs would hit the country harder than others.

Earlier this month, the German statistics office, Destatis, said that the US′ importance as a trading partner for Germany has been growing. The agency said that since 2021, the US had been the second-most important trade partner for Germany behind China, but in the first half of 2024, foreign trade turnover with the US was higher than that with China. In 2023, around 9.9 per cent of German exports went to the US, according to Destatis.

Trade tensions between the US and China, and the EU and China, have been rising throughout the year. Both the US and EU have implemented higher tariffs and on some goods imported from China, citing unfair trade practices.

China in turn has also announced higher temporary tariffs on some imports from the EU. Several probes and investigations into one another’s competition, subsidy, and other practices are also ongoing as the tit-for-tat measures continue.

After the EU voted to impose tariffs on Chinese-made electric vehicles, Germany’s Lindner urged the union not to start a trade war. Germany had previously advocated against higher duties, raising concerns about what they could mean for the country’s struggling carmakers.

Earlier in the week, Gita Gopinath, deputy managing director of the IMF, told CNBC that an escalation of trade and tariffs tensions between the U.S. and China would be “costly for everybody.”

Market participants and global investors will closely follow these developments and make informed investment decisions depending on how the relationships of top economies throughout the globe evolve.

The Finance Minister of Germany Christian Lindner recently warned that if the US kicked off a trade war with the European Union (EU), there could be retaliation, as detailed in a report by CNBC.

The Finance Minister of Germany Christian Lindner recently warned that if the US kicked off a trade war with the European Union (EU), there could be retaliation, as detailed in a report by CNBC. He further stated that “Trade controversy sees never winners, only losers,” Lindner told CNBC in an exclusive conversation on the sidelines of the International Monetary Fund’s annual meeting in Washington, DC. What US trade policy could look like if Donald Trump were elected as president is a key issue, Lindner suggested. “In that case we need diplomatic efforts to convince whoever enters the White House that it’s not in the best interest of the US to have a trade conflict with the European Union. We would have to consider retaliation,” he said. Lindner belongs to the pro-business Free Democratic Party which is currently in coalition with Chancellor Olaf Scholz’s Social Democratic Party. The US′ problem with trading lies with China rather than the EU, Lindner said, adding that the EU “should not become a negative side effect” of controversy between the US and China. Trump has floated the idea of tariffs Trump has floated the idea that, if he were elected, blanket tariffs of 10 per cent to 20 per cent could be imposed on almost all imports, no matter where they came from. If such a 20 per cent tariff were implemented by the US, the EU’s and Germany’s gross domestic product would fall in the coming years, Reuters reported on October 24 citing a study by German economic institute IW. Trade is one of the main pillars of the German economy, suggesting heightened tensions, uncertainty and tariffs would hit the country harder than others. Earlier this month, the German statistics office, Destatis, said that the US′ importance as a trading partner for Germany has been growing. The agency said that since 2021, the US had been the second-most important trade partner for Germany behind China, but in the first half of 2024, foreign trade turnover with the US was higher than that with China. In 2023, around 9.9 per cent of German exports went to the US, according to Destatis. Trade tensions between the US and China, and the EU and China, have been rising throughout the year. Both the US and EU have implemented higher tariffs and on some goods imported from China, citing unfair trade practices. China in turn has also announced higher temporary tariffs on some imports from the EU. Several probes and investigations into one another’s competition, subsidy, and other practices are also ongoing as the tit-for-tat measures continue. After the EU voted to impose tariffs on Chinese-made electric vehicles, Germany’s Lindner urged the union not to start a trade war. Germany had previously advocated against higher duties, raising concerns about what they could mean for the country’s struggling carmakers. Earlier in the week, Gita Gopinath, deputy managing director of the IMF, told CNBC that an escalation of trade and tariffs tensions between the U.S. and China would be “costly for everybody.” Market participants and global investors will closely follow these developments and make informed investment decisions depending on how the relationships of top economies throughout the globe evolve.

German Finance Minister issues warning over potential US trade war

An escalation of trade and tariffs tensions between the US and China would have “costly” economic consequences around the world, Gita Gopinath, deputy managing director of the International Monetary Fund stated in a conversation with CNBC on October 23. This advice comes amid the ongoing trade tensions between the US and China.

“We are seeing geopolitically driven trade around the world, which is why when you look at overall trade to GDP that’s holding up fine, but who’s trading with whom is certainly changing,” she said. The US and China are trading with one another less, and some parts of their trade are being re-routed through other countries, she added.

Trade tensions between the US and China and the European Union and China have been mounting this year, with both the US and EU implementing higher tariffs on some Chinese goods over what they claim are unfair trade practices from Beijing.

China has also announced higher temporary tariffs on some imports from the EU as the tit-for-tat measures continue. If tariffs were escalated, modelling from the IMF suggests it would be “costly for everybody,” Gopinath told CNBC on the sidelines of the agency’s annual meeting in Washington. “Output is going to be much lower than what we are projecting for all countries in the world, there’s going to be inflation pressure, so that’s not the direction in which we should be going,” she explained.

Gopinath’s comments come after IMF Managing Director Kristalina Georgieva said last week that international trade would no longer be the “engine of growth” it once was, and that “retaliatory” trade measures could hurt those imposing them as much as their targets.

Tim Adams, CEO of the Institute of International Finance, also warned Wednesday that tariff proposals from US presidential candidate Donald Trump would interrupt the path of disinflation and could lead to higher interest rates.

The IMF’s Gopinath said it would benefit both the US and China to have “good working relations,” noting that this was also important for the rest of the world. It is “in everyone’s self-interest that these relationships are maintained,” she said.

The IMF warned in its recent World Economic Outlook report that increasing protectionist policies were a downside risk to growth. “A broad-based retreat from a rules-based global trading system is prompting many countries to take unilateral actions. Not only would an intensification of protectionist policies exacerbate global trade tensions and disrupt global supply chains, but it could also weigh down medium-term growth prospects,” the report said.

An escalation of trade and tariffs tensions between the US and China would have “costly” economic consequences around the world, Gita Gopinath, deputy managing director of the International Monetary Fund stated in a conversation with CNBC on October 23.

An escalation of trade and tariffs tensions between the US and China would have “costly” economic consequences around the world, Gita Gopinath, deputy managing director of the International Monetary Fund stated in a conversation with CNBC on October 23. This advice comes amid the ongoing trade tensions between the US and China. “We are seeing geopolitically driven trade around the world, which is why when you look at overall trade to GDP that’s holding up fine, but who’s trading with whom is certainly changing,” she said. The US and China are trading with one another less, and some parts of their trade are being re-routed through other countries, she added. Trade tensions between the US and China and the European Union and China have been mounting this year, with both the US and EU implementing higher tariffs on some Chinese goods over what they claim are unfair trade practices from Beijing. China has also announced higher temporary tariffs on some imports from the EU as the tit-for-tat measures continue. If tariffs were escalated, modelling from the IMF suggests it would be “costly for everybody,” Gopinath told CNBC on the sidelines of the agency’s annual meeting in Washington. “Output is going to be much lower than what we are projecting for all countries in the world, there’s going to be inflation pressure, so that’s not the direction in which we should be going,” she explained. Gopinath’s comments come after IMF Managing Director Kristalina Georgieva said last week that international trade would no longer be the “engine of growth” it once was, and that “retaliatory” trade measures could hurt those imposing them as much as their targets. Tim Adams, CEO of the Institute of International Finance, also warned Wednesday that tariff proposals from US presidential candidate Donald Trump would interrupt the path of disinflation and could lead to higher interest rates. The IMF’s Gopinath said it would benefit both the US and China to have “good working relations,” noting that this was also important for the rest of the world. It is “in everyone’s self-interest that these relationships are maintained,” she said. The IMF warned in its recent World Economic Outlook report that increasing protectionist policies were a downside risk to growth. “A broad-based retreat from a rules-based global trading system is prompting many countries to take unilateral actions. Not only would an intensification of protectionist policies exacerbate global trade tensions and disrupt global supply chains, but it could also weigh down medium-term growth prospects,” the report said.

US, China trade tariffs escalating would be ‘costly for everybody': IMF

China has expressed strong opposition to the United States' recent decision to add several Chinese companies to its export control list due to their alleged involvement with Russia, according to a report by Reuters. The US move, announced on Friday, targets 105 firms. 42 from China, 63 from Russia, and 18 from other countries for reportedly supporting the Russian military.&nbsp;

The companies are accused of activities ranging from supplying US electronics to Russian military entities to manufacturing Shahed-136 drones used by Russia in its ongoing conflict with Ukraine. Being added to this "entity list" makes it difficult for these firms to receive US exports, as American suppliers now need special licenses to do business with them.&nbsp;

China's response&nbsp;

In response, China's Ministry of Commerce issued a statement on Sunday condemning the US action. The ministry argued that the move disrupts international trade and hinders regular economic exchanges between nations. "China strongly opposes the US decision and will take necessary measures to resolutely safeguard the legitimate rights of its companies," the ministry stated.&nbsp;

This development marks yet another escalation in the already tense relationship between the US and China. Over the past few years, the two nations have been at odds over various issues, including trade, technology, and geopolitical influence. The latest US sanctions are likely to further strain the relationship, with potential repercussions for global trade and economic stability.&nbsp;

China's pledge to take "necessary measures" signals that it may retaliate against the US in some form, though specific actions have not yet been detailed. As the situation unfolds, it is expected to contribute to the ongoing uncertainty in the global market, particularly in sectors that rely heavily on U.S.-China trade relations.&nbsp;

The US government, meanwhile, continues to justify its actions as necessary to counter what it sees as threats to national security and global stability, particularly in light of Russia's actions in Ukraine. The Biden administration has remained firm in its stance, signalling that further actions could be taken if deemed necessary.&nbsp;

China has expressed strong opposition to the United States' recent decision to add several Chinese companies to its export control list due to their alleged involvement with Russia, according to a report by Reuters.

China has expressed strong opposition to the United States' recent decision to add several Chinese companies to its export control list due to their alleged involvement with Russia, according to a report by Reuters. The US move, announced on Friday, targets 105 firms. 42 from China, 63 from Russia, and 18 from other countries for reportedly supporting the Russian military. The companies are accused of activities ranging from supplying US electronics to Russian military entities to manufacturing Shahed-136 drones used by Russia in its ongoing conflict with Ukraine. Being added to this "entity list" makes it difficult for these firms to receive US exports, as American suppliers now need special licenses to do business with them. China's response In response, China's Ministry of Commerce issued a statement on Sunday condemning the US action. The ministry argued that the move disrupts international trade and hinders regular economic exchanges between nations. "China strongly opposes the US decision and will take necessary measures to resolutely safeguard the legitimate rights of its companies," the ministry stated. This development marks yet another escalation in the already tense relationship between the US and China. Over the past few years, the two nations have been at odds over various issues, including trade, technology, and geopolitical influence. The latest US sanctions are likely to further strain the relationship, with potential repercussions for global trade and economic stability. China's pledge to take "necessary measures" signals that it may retaliate against the US in some form, though specific actions have not yet been detailed. As the situation unfolds, it is expected to contribute to the ongoing uncertainty in the global market, particularly in sectors that rely heavily on U.S.-China trade relations. The US government, meanwhile, continues to justify its actions as necessary to counter what it sees as threats to national security and global stability, particularly in light of Russia's actions in Ukraine. The Biden administration has remained firm in its stance, signalling that further actions could be taken if deemed necessary.

China criticizes US for blacklisting firms, promises retaliation

We look at how economics is used in geopolitics and the growing debate surrounding the US and China's volatile relationship. There have been fresh discussions on the de-globalisation of international commerce.

US, China decoupled in terms of direct trade

The simmering trade tensions between the US and China have reached a boiling point. The US administration announced a significant increase in tariffs on $18 billion worth of Chinese goods. This move targets key sectors like electric vehicles, semiconductors, and steel.

Trade fragmentation concerns mount after US tariffs on China

China has launched a trade dispute at the World Trade Organization against the United States. The dispute is over its chip export control measures. Watch further to know more.

China challenges U.S. chip curbs at WTO

China has been lobbying US businessmen, executives and companies to fight against China-specific bills in the US Congress.

The report by news agency Reuters, which has quoted sources, said the Chinese officials have warned companies that they would risk losing market share or revenue in China if the legislation becomes law.

The Chinese embassy in Washington has been pressing executives to urge members of Congress to alter or drop specific bills that seek to enhance US competitiveness, according to the Reuters report which claimed to have access to a letter of the embassy’s economic and commercial office.

Also read | <a href="https://www.wionews.com/world/defying-china-us-announces-24-billion-sale-of-coastal-defense-systems-to-taiwan-338183">Defying China, US announces $2.4 billion sale of coastal defense systems to Taiwan</a>

The United States has been wary of China’s dominance in its markets, especially in the field of technology research, semiconductor development and manufacturing.

The US has been working hard to break away the supply chain from China by asking the American companies to shift their manufacturing base to the US.

Earlier this year, a US House of Representatives committee advanced legislation intended to boost competitiveness with China.

It authorises roughly $250 billion in funding for technology research, semiconductor development and manufacturing, as well as subsidies for robot makers and chipmakers amid a shortage of computer chips worldwide.

Also read |&nbsp;<a href="https://www.wionews.com/south-asia/chinese-spy-agency-playing-active-role-to-destabilise-nepals-relations-with-other-nations-report-428958">Chinese spy agency playing active role to destabilise Nepal’s relations with other nations: Report</a>

Many US lawmakers said the package is one of the largest industrial bills in US history and the biggest investment in scientific research that the country has seen in decades.

The bill includes a number of China-specific provisions, including the prohibition of the social media app TikTok from being downloaded on government devices.

The purchase of drones manufactured and sold by Chinese state enterprises would also be blocked under the legislation.

Also read |&nbsp;<a href="https://www.wionews.com/world/us-media-outlets-received-millions-of-dollars-from-china-to-sell-its-propaganda-report-396678">US media outlets received millions of dollars from China to sell its propaganda: Report</a>

Chinese organisations engaged in US cyber-attacks or theft of US intellectual property from US firms would face sanctions too, once the bill is passed.

Apart from trade issues, the tensions between the White House and Beijing also span over human rights concerns, national security, and the deplorable conditions of Uyghur Muslims in Xinjian province.&nbsp;

Earlier this year, the US intelligence community named China as the top national security threat.

China's military actions in the South China Sea have led the US to focus on partners and allies in the Indo-Pacific region, including a White House summit in September with the other leaders of the Quad&nbsp;countries: Japan, Australia and India.

(With inputs from agencies)

China has been lobbying US businessmen, executives and companies to fight against China-specific bills in the US Congress. The report by news agency Reuters, which has quoted sources, said the Chinese officials have warned companies that they would risk losing market share or revenue in China if the legislation becomes law.

China has been lobbying US businessmen, executives and companies to fight against China-specific bills in the US Congress. The report by news agency Reuters, which has quoted sources, said the Chinese officials have warned companies that they would risk losing market share or revenue in China if the legislation becomes law. The Chinese embassy in Washington has been pressing executives to urge members of Congress to alter or drop specific bills that seek to enhance US competitiveness, according to the Reuters report which claimed to have access to a letter of the embassy’s economic and commercial office. Also read | Defying China, US announces $2.4 billion sale of coastal defense systems to Taiwan The United States has been wary of China’s dominance in its markets, especially in the field of technology research, semiconductor development and manufacturing. The US has been working hard to break away the supply chain from China by asking the American companies to shift their manufacturing base to the US. Earlier this year, a US House of Representatives committee advanced legislation intended to boost competitiveness with China. It authorises roughly $250 billion in funding for technology research, semiconductor development and manufacturing, as well as subsidies for robot makers and chipmakers amid a shortage of computer chips worldwide. Also read | Chinese spy agency playing active role to destabilise Nepal’s relations with other nations: Report Many US lawmakers said the package is one of the largest industrial bills in US history and the biggest investment in scientific research that the country has seen in decades. The bill includes a number of China-specific provisions, including the prohibition of the social media app TikTok from being downloaded on government devices. The purchase of drones manufactured and sold by Chinese state enterprises would also be blocked under the legislation. Also read | US media outlets received millions of dollars from China to sell its propaganda: Report Chinese organisations engaged in US cyber-attacks or theft of US intellectual property from US firms would face sanctions too, once the bill is passed. Apart from trade issues, the tensions between the White House and Beijing also span over human rights concerns, national security, and the deplorable conditions of Uyghur Muslims in Xinjian province. Earlier this year, the US intelligence community named China as the top national security threat. China's military actions in the South China Sea have led the US to focus on partners and allies in the Indo-Pacific region, including a White House summit in September with the other leaders of the Quad countries: Japan, Australia and India. (With inputs from agencies)

China urging US businessmen to lobby against anti-China bills: Report

Top business negotiators from China and the United States made their first telephone calls since Joe Biden entered the White House, and stressed the importance of improving their bilateral trade relations.

US and China trade officials hold 'candid' trade talks, first discussion under Biden-era

United States Trade Representative Katherine Tai on Thursday said that Washington will not hesitate to call out China`s coercive trade practices and added that Washington welcomes the trade competition but it must be fair.

Speaking before a committee hearing on the Biden administration`s trade policy agenda, Tai said, "We will not hesitate to call out China`s coercive and unfair trade practices that harm American workers, undermine the multilateral system, or violate basic human rights. We are working towards a strong, strategic approach to our trade and economic relationship with China."

"We welcome the competition. But the competition must be fair, and if China cannot or will not adapt to international rules and norms, we must be bold and creative in taking steps to level the playing field and enhance our capabilities and partnerships," she added.

This comes as the Biden administration is still evaluating China`s compliance to the trade commitments it made with the previous Trump era and added that those commitments will ascertain how Washington will move forward in its ties with Beijing.

Tai had said last month that, "We are in the process of examining performance and are scrutinizing all the aspects of what they have done and what they have yet to do and what they have not done at the levels that they promised."

"These promises and China`s ability to keep them ... will be a priority for us as we examine our options for engagement with China and all of our enforcement options."

In January 2020, China had agreed to buy at least USD 200 billion more in US goods and services over two years on top of its purchases in 2017. The Phase One deal was struck by former President Donald Trump after a tariffs fight that started between the two countries.

China imported about USD 100 billion of US goods - only 58 per cent of the actual targeted volume of USD 173.1 billion for 2020, in the first year of the arrangement, Sputnik reported.

Biden administration has had a rocky start in the US relationship with China, with officials from the two countries openly bickering before the media at a meeting in Alaska hosted by US State Secretary Anthony Blinken last month.

Both the countries have continued to tussle on issues about Hong Kong, Xinjiang, South China Sea, and the Indo-Pacific region. The only issue they partially seem to agree on is climate change.

United States Trade Representative Katherine Tai on Thursday said that Washington will not hesitate to call out China`s coercive trade practices and added that Washington welcomes the trade competition but it must be fair.

United States Trade Representative Katherine Tai on Thursday said that Washington will not hesitate to call out China`s coercive trade practices and added that Washington welcomes the trade competition but it must be fair. Speaking before a committee hearing on the Biden administration`s trade policy agenda, Tai said, "We will not hesitate to call out China`s coercive and unfair trade practices that harm American workers, undermine the multilateral system, or violate basic human rights. We are working towards a strong, strategic approach to our trade and economic relationship with China." "We welcome the competition. But the competition must be fair, and if China cannot or will not adapt to international rules and norms, we must be bold and creative in taking steps to level the playing field and enhance our capabilities and partnerships," she added. This comes as the Biden administration is still evaluating China`s compliance to the trade commitments it made with the previous Trump era and added that those commitments will ascertain how Washington will move forward in its ties with Beijing. Tai had said last month that, "We are in the process of examining performance and are scrutinizing all the aspects of what they have done and what they have yet to do and what they have not done at the levels that they promised." "These promises and China`s ability to keep them ... will be a priority for us as we examine our options for engagement with China and all of our enforcement options." In January 2020, China had agreed to buy at least USD 200 billion more in US goods and services over two years on top of its purchases in 2017. The Phase One deal was struck by former President Donald Trump after a tariffs fight that started between the two countries. China imported about USD 100 billion of US goods - only 58 per cent of the actual targeted volume of USD 173.1 billion for 2020, in the first year of the arrangement, Sputnik reported. Biden administration has had a rocky start in the US relationship with China, with officials from the two countries openly bickering before the media at a meeting in Alaska hosted by US State Secretary Anthony Blinken last month. Both the countries have continued to tussle on issues about Hong Kong, Xinjiang, South China Sea, and the Indo-Pacific region. The only issue they partially seem to agree on is climate change.

'US will not hesitate to call out China's coercive trade practices'

The ties between Washington & Beijing are constantly getting strained, Do American firms in China looking to exit?

Ties between Washington & Beijing getting strained, American firms in China looking to exit?

Global markets heaved a sigh of relief when the world's two largest economies signed the first phase of the trade truce, ending an 18-month standoff that feared a further slowdown in the global economy. The deal didn't end the hundreds of billions of dollars of tariffs imposed by both the countries but some reliefs were provided to the Chinese.

The trade war first started when US President Donald Trump accused China of unfair trade practices and intellectual property theft. So, let's look at the key issues and see whether the phase 1 of this deal address them or not.

Tariffs

The good news for China is that the US agreed to reduce half of the total tariffs imposed on its goods in September 2019. However, both countries have not rolled back enormous tariffs imposed on each other's exports. This means Washington's tariffs on $360 billion Chinese goods and Beijing's $110 billion on US goods will continue. The US also agreed that it will not impose tariffs that were supposed to be put in place on December 15.

Intellectual property

China has long been accused of intellectual property theft even by the previous US administrations and was one of the main reasons for the confrontation. This truce deals with intellectual property issue as China has committed to protect trademark, patents and copyrights. China also vowed of stronger criminal and civil laws to punish intellectual property thefts and counterfeiting.

The deal also ensures that US-based pharmaceutical industries get more shields from China as far as patents are concerned.

American businesses have often complained of surrendering technology and trade secrets to China as a necessity to do business in the country. China pledged to eliminate any forced transfer of technology which includes removing pressures of licensing and administrative approvals.

Purchase of American goods

Through this deal, the US President wanted to push US exports to China which is significantly lower than Chinese exports to the US. China vowed that it will purchase $200 billion worth of goods from the US in the next two years. The list of purchase includes $32 billion of agricultural products, $52.4 billion of energy exports, $77.7 billion worth manufactured products and $37.9 billion of services.

China, however, claims that the buying will depend on the market demand and some analysts and experts are also sceptical whether American manufacturers and farmers can produce enough to meet Chinese demands.

China has also relaxed a number of health standards which earlier were used to prevent American imports. These changes will benefit US products, such as dairy, meat, seafood, poultry, among others.

Subsidies and cybersecurity

Trump has complained of China offering massive industrial subsidies to its domestic firms, making it difficult for American businesses to compete. These subsidies were especially granted to solar panel and steel industries. It was a major issue of conflict but the truce has no word on these subsidies.

The trade deal also doesn't comment on other concerning issues such as cybersecurity and Chinese control of cloud computing and data storage.

Currency manipulations

Ahead of signing of the first-phase deal, the US removed its currency manipulator tag from China. In the deal, China pledged that it will not manipulate its currency for gaining unfair trade advantage, a commitment the country made for years to G20 nations and are its obligations to the International Monetary Fund (IMF).

The US treasury earlier said that China has made “enforceable commitments to refrain from competitive devaluation” and said that it would publish relevant data on exchange rates and external balances.

Access to financial services

With the deal, the US says that its financial services companies have got a better access to Chinese markets. The deal binds China to address concerns of foreign equity limitations and discriminatory regulatory requirements.

Interestingly, China already started giving foreign financial companies more room from 2017. Also, US payment companies' entry in the Chinese market will not be easy as the market is majorly dominated by domestic firms.

Dispute resolving mechanism

The deal also says that future trade disputes be settled through bilateral consultations, which will initiate from working level and escalate to top-tier.

If bilateral engagement doesn't solve the differences, then the affected party can impose penalties or tariffs and the other country cannot in retaliation put more tariffs. In such an act of retaliation, any party can give written notice and the deal could be withdrawn.

Global markets heaved a sigh of relief when the world's two largest economies signed the first phase of the trade truce, ending an 18-month standoff that feared a further slowdown in the global economy.

Global markets heaved a sigh of relief when the world's two largest economies signed the first phase of the trade truce, ending an 18-month standoff that feared a further slowdown in the global economy. The deal didn't end the hundreds of billions of dollars of tariffs imposed by both the countries but some reliefs were provided to the Chinese. The trade war first started when US President Donald Trump accused China of unfair trade practices and intellectual property theft. So, let's look at the key issues and see whether the phase 1 of this deal address them or not. Tariffs The good news for China is that the US agreed to reduce half of the total tariffs imposed on its goods in September 2019. However, both countries have not rolled back enormous tariffs imposed on each other's exports. This means Washington's tariffs on $360 billion Chinese goods and Beijing's $110 billion on US goods will continue. The US also agreed that it will not impose tariffs that were supposed to be put in place on December 15. Intellectual property China has long been accused of intellectual property theft even by the previous US administrations and was one of the main reasons for the confrontation. This truce deals with intellectual property issue as China has committed to protect trademark, patents and copyrights. China also vowed of stronger criminal and civil laws to punish intellectual property thefts and counterfeiting. The deal also ensures that US-based pharmaceutical industries get more shields from China as far as patents are concerned. American businesses have often complained of surrendering technology and trade secrets to China as a necessity to do business in the country. China pledged to eliminate any forced transfer of technology which includes removing pressures of licensing and administrative approvals. Purchase of American goods Through this deal, the US President wanted to push US exports to China which is significantly lower than Chinese exports to the US. China vowed that it will purchase $200 billion worth of goods from the US in the next two years. The list of purchase includes $32 billion of agricultural products, $52.4 billion of energy exports, $77.7 billion worth manufactured products and $37.9 billion of services. China, however, claims that the buying will depend on the market demand and some analysts and experts are also sceptical whether American manufacturers and farmers can produce enough to meet Chinese demands. China has also relaxed a number of health standards which earlier were used to prevent American imports. These changes will benefit US products, such as dairy, meat, seafood, poultry, among others. Subsidies and cybersecurity Trump has complained of China offering massive industrial subsidies to its domestic firms, making it difficult for American businesses to compete. These subsidies were especially granted to solar panel and steel industries. It was a major issue of conflict but the truce has no word on these subsidies. The trade deal also doesn't comment on other concerning issues such as cybersecurity and Chinese control of cloud computing and data storage. Currency manipulations Ahead of signing of the first-phase deal, the US removed its currency manipulator tag from China. In the deal, China pledged that it will not manipulate its currency for gaining unfair trade advantage, a commitment the country made for years to G20 nations and are its obligations to the International Monetary Fund (IMF). The US treasury earlier said that China has made “enforceable commitments to refrain from competitive devaluation” and said that it would publish relevant data on exchange rates and external balances. Access to financial services With the deal, the US says that its financial services companies have got a better access to Chinese markets. The deal binds China to address concerns of foreign equity limitations and discriminatory regulatory requirements. Interestingly, China already started giving foreign financial companies more room from 2017. Also, US payment companies' entry in the Chinese market will not be easy as the market is majorly dominated by domestic firms. Dispute resolving mechanism The deal also says that future trade disputes be settled through bilateral consultations, which will initiate from working level and escalate to top-tier. If bilateral engagement doesn't solve the differences, then the affected party can impose penalties or tariffs and the other country cannot in retaliation put more tariffs. In such an act of retaliation, any party can give written notice and the deal could be withdrawn.

US China trade deal: What were the key issues and are they resolved?

On January 15, China & U.S. going to have a trade agreement. The U.S. is a trade partner of China, despite China's ties with Iran. China has urged for restraint and calm. #China #US #TradeAgreement

China claims, 'Soleimani killing won't derail China-U.S. trade talks'

Gold firmed on Thursday, edging back towards the three-month peak it reached earlier in the week on the back of dollar weakness, with the market focusing on minutes of the US&nbsp;Federal Reserve's December policy meeting.

Spot gold was up 0.4 per cent&nbsp;to $1,523.12 per ounce as of 1248 GMT, having touched its highest since Sept. 25 at $1,525.20 on Tuesday. The US&nbsp;gold futures were up 0.2 per cent&nbsp;at $1,525.80.

"We are seeing a bit of a bounce-back&nbsp;in the dollar but if you look at the movements that we saw (in the past few days), it is probably supporting gold in the interim," said OANDA analyst Craig Erlam.

The negative correlation between the <a href="https://www.wionews.com/business-economy/dollar-snaps-six-day-losing-streak-a-flat-start-for-2020-271653">dollar</a> and bullion is what really propelled gold from $1,480 to $1,520, he said, but further upside in the US&nbsp;currency could put pressure on gold.

Against key rivals, the dollar was up 0.3 per cent&nbsp;this session but was trading not far from the six-month low it touched on Tuesday.

Beijing's decision to ease monetary policy further supported bullion, <a href="https://www.wionews.com/business-economy/sterling-rebounds-on-eve-of-uk-election-267749">Erlam</a> added.

China's central bank on Wednesday said it was cutting the amount of cash that all banks must hold as reserves, releasing funds to shore up the slowing economy.

Bullion prices posted their biggest annual rise in nearly a decade in 2019, boosted by the drawn-out trade war between the <a href="https://www.wionews.com/world/china-halts-british-stock-link-over-political-tensions-sources-271591">United States and China</a> that dragged on global economic growth.

Many analysts said prices were likely to rise further in 2020, with shaky growth and global stock markets potentially looking unsustainable at record highs.

"A key thing to look out for is stock markets, which have been setting new highs," said Brian Lan, managing director at dealer GoldSilver Central in Singapore. "In case there is some correction, we (could) see some capital flows into gold."

<a href="https://www.wionews.com/world/united-kingdoms-new-government-increases-minimum-wage-to-ps872-271242">Brexit</a>, the US&nbsp;presidential election, <a href="https://www.wionews.com/world/hong-kong-protests-severely-challenged-one-country-two-systems-principle-xi-in-his-new-year-address-271325">protests in Hong Kong</a> and <a href="https://www.wionews.com/world/kim-says-north-korea-to-show-new-strategic-weapon-leaves-room-for-talks-271331">tensions with North Korea</a> would be the other key factors for the market this year, he said.

Investor focus has now turned to the minutes of the <a href="https://www.wionews.com/business-economy/gold-climbs-to-three-month-high-poised-for-best-year-since-2010-271231">Federal Reserve's</a> December&nbsp;10-11 policy meeting, due at 1900 GMT on Friday. Lower interest rates encourage the buying of non-interest-paying bullion.

"Friday's US&nbsp;manufacturing ISM and the December <a href="https://www.wionews.com/business-economy/global-markets-asian-shares-buoyed-by-wall-st-rally-but-china-worry-caps-gains-267070">Federal Open Market Committee</a> (FOMC) minutes could provide an impulse," <a href="https://www.wionews.com/business-economy/oil-prices-surge-after-us-strike-kills-iranian-general-271775">Stephen Innes</a>, a market strategist at AxiTrader said in a note.

Among other precious metals, silver gained 0.5 per cent&nbsp;to $17.92 per ounce, while platinum rose 1.7 per cent&nbsp;to $979.65 and palladium edged up 0.4 per cent&nbsp;to $1,947.37 per ounce.

Gold firmed on Thursday, edging back towards the three-month peak it reached earlier in the week on the back of dollar weakness, with the market focusing on minutes of the US Federal Reserve's December policy meeting.

Gold firmed on Thursday, edging back towards the three-month peak it reached earlier in the week on the back of dollar weakness, with the market focusing on minutes of the US Federal Reserve's December policy meeting. Spot gold was up 0.4 per cent to $1,523.12 per ounce as of 1248 GMT, having touched its highest since Sept. 25 at $1,525.20 on Tuesday. The US gold futures were up 0.2 per cent at $1,525.80. "We are seeing a bit of a bounce-back in the dollar but if you look at the movements that we saw (in the past few days), it is probably supporting gold in the interim," said OANDA analyst Craig Erlam. The negative correlation between the dollar and bullion is what really propelled gold from $1,480 to $1,520, he said, but further upside in the US currency could put pressure on gold. Against key rivals, the dollar was up 0.3 per cent this session but was trading not far from the six-month low it touched on Tuesday. Beijing's decision to ease monetary policy further supported bullion, Erlam added. China's central bank on Wednesday said it was cutting the amount of cash that all banks must hold as reserves, releasing funds to shore up the slowing economy. Bullion prices posted their biggest annual rise in nearly a decade in 2019, boosted by the drawn-out trade war between the United States and China that dragged on global economic growth. Many analysts said prices were likely to rise further in 2020, with shaky growth and global stock markets potentially looking unsustainable at record highs. "A key thing to look out for is stock markets, which have been setting new highs," said Brian Lan, managing director at dealer GoldSilver Central in Singapore. "In case there is some correction, we (could) see some capital flows into gold." Brexit, the US presidential election, protests in Hong Kong and tensions with North Korea would be the other key factors for the market this year, he said. Investor focus has now turned to the minutes of the Federal Reserve's December 10-11 policy meeting, due at 1900 GMT on Friday. Lower interest rates encourage the buying of non-interest-paying bullion. "Friday's US manufacturing ISM and the December Federal Open Market Committee (FOMC) minutes could provide an impulse," Stephen Innes, a market strategist at AxiTrader said in a note. Among other precious metals, silver gained 0.5 per cent to $17.92 per ounce, while platinum rose 1.7 per cent to $979.65 and palladium edged up 0.4 per cent to $1,947.37 per ounce.

Gold rises back towards three-month high, markets eye Fed minutes

Optimism fueled in China as the fresh economy stimulates in the apogee of an improved global outlook and easing trade tensions&nbsp;with <a href="https://www.wionews.com/world/tesla-says-will-start-delivering-china-made-model-3s-to-public-on-january-7-271722">Wall Street</a> reaching major indexes recorded on top to open new year on Thursday.&nbsp;

China's central bank said on Wednesday it would cut the amount of cash that all banks must&nbsp;hold as reserves, the eighth such cut since early 2018. The move to inject fresh&nbsp;stimulus into the Chinese economy boosted equity markets around the globe.

The benchmark <a href="https://www.wionews.com/business-economy/indian-shares-slip-as-oil-jumps-after-us-air-strikes-in-middle-east-271832">S&amp;P 500</a> hit its 11th record high in 14 sessions and posted its largest&nbsp;daily percentage gain in three weeks. The Dow registered its biggest&nbsp;such gain in almost&nbsp;four weeks, and the Nasdaq its greatest&nbsp;in nearly three months.

Economic&nbsp;stimulus in&nbsp;China, along with the easing of&nbsp;trade&nbsp;tensions between Washington and Beijing, has bolstered optimism that the global economy will accelerate in&nbsp;2020.

"The market's been up all day because of the&nbsp;news that&nbsp;China&nbsp;is out there with monetary easing," said <a href="https://www.wionews.com/world/us-joins-other-nations-in-grounding-737-max-jets-after-second-crash-203179">Tim Ghriskey</a>, chief investment&nbsp;strategist&nbsp;at Inverness Counsel in&nbsp;New&nbsp;York. "With the&nbsp;trade&nbsp;deal as a backdrop, it's a positive factor."

Among the S&amp;P 500's sectors, technology and industrials, both of which have high exposure to the Chinese economy, rose more than 1 per cent&nbsp;and led in percentage gains. Shares of <a href="https://www.wionews.com/world/new-york-cardiologist-sues-apple-over-heartbeat-monitoring-technology-271003">Apple Inc</a>, which have been a bellwether of&nbsp;trade&nbsp;sentiment, ended 2.3 per cent&nbsp;higher and surpassed $300.

The lengthy rally on&nbsp;Wall&nbsp;Street has prompted some concerns that US&nbsp;stocks are vulnerable to a pullback, especially if economic growth does not pick up as much as expected or if <a href="https://www.wionews.com/world/us-farmers-see-another-bleak-year-despite-phase-1-trade-deal-271864">US-China&nbsp;trade</a>&nbsp;tensions reignite.

"Large-cap equities are priced for perfection," said Peter Cecchini, global chief market&nbsp;strategist&nbsp;at Cantor Fitzgerald in&nbsp;New&nbsp;York. "It feels like we're wildly overbought given the risks that we see."

The Dow Jones Industrial Average&nbsp;rose 330.36 points, or 1.16 per cent, to 28,868.8, the S&amp;P 500&nbsp;gained 27.07 points, or 0.84 per cent, to 3,257.85 and the Nasdaq Composite&nbsp;added 119.59 points, or 1.33 per cent, to 9,092.19.

Adding to positive economic sentiment, data from the US&nbsp;Labor Department showed the number of Americans filing claims for jobless benefits edged lower last&nbsp;week.

Other data from Greater&nbsp;China&nbsp;showing that gross gaming revenue in Macau fell less than expected in December boosted shares of US&nbsp;casino operators. Shares of Wynn Resorts Ltd, Las Vegas Sands Corp&nbsp;and Melco Resorts &amp; Entertainment Ltd&nbsp; rose between 2 per cent&nbsp;and 4 per cent.

Advancing issues outnumbered declining ones on the <a href="https://www.wionews.com/business-economy/world-stocks-hit-all-time-high-after-trump-tweets-close-to-china-deal-267973">NYSE</a> by a 1.74-to-1 ratio; on Nasdaq, a 1.41-to-1 ratio favoured advancers.

The S&amp;P 500 posted 59&nbsp;new&nbsp;52-week highs and one&nbsp;new&nbsp;low; the Nasdaq Composite recorded 115&nbsp;new&nbsp;highs and 15&nbsp;new&nbsp;lows.

Volume on US&nbsp;exchanges was 7.61 billion shares, compared to the 6.85 billion-share average for the full session over the last&nbsp;20 trading days.

Optimism fueled in China as the fresh economy stimulates in the apogee of an improved global outlook and easing trade tensions with Wall Street reaching major indexes recorded on top to open new year on Thursday.

Optimism fueled in China as the fresh economy stimulates in the apogee of an improved global outlook and easing trade tensions with Wall Street reaching major indexes recorded on top to open new year on Thursday. China's central bank said on Wednesday it would cut the amount of cash that all banks must hold as reserves, the eighth such cut since early 2018. The move to inject fresh stimulus into the Chinese economy boosted equity markets around the globe. The benchmark S&P 500 hit its 11th record high in 14 sessions and posted its largest daily percentage gain in three weeks. The Dow registered its biggest such gain in almost four weeks, and the Nasdaq its greatest in nearly three months. Economic stimulus in China, along with the easing of trade tensions between Washington and Beijing, has bolstered optimism that the global economy will accelerate in 2020. "The market's been up all day because of the news that China is out there with monetary easing," said Tim Ghriskey, chief investment strategist at Inverness Counsel in New York. "With the trade deal as a backdrop, it's a positive factor." Among the S&P 500's sectors, technology and industrials, both of which have high exposure to the Chinese economy, rose more than 1 per cent and led in percentage gains. Shares of Apple Inc, which have been a bellwether of trade sentiment, ended 2.3 per cent higher and surpassed $300. The lengthy rally on Wall Street has prompted some concerns that US stocks are vulnerable to a pullback, especially if economic growth does not pick up as much as expected or if US-China trade tensions reignite. "Large-cap equities are priced for perfection," said Peter Cecchini, global chief market strategist at Cantor Fitzgerald in New York. "It feels like we're wildly overbought given the risks that we see." The Dow Jones Industrial Average rose 330.36 points, or 1.16 per cent, to 28,868.8, the S&P 500 gained 27.07 points, or 0.84 per cent, to 3,257.85 and the Nasdaq Composite added 119.59 points, or 1.33 per cent, to 9,092.19. Adding to positive economic sentiment, data from the US Labor Department showed the number of Americans filing claims for jobless benefits edged lower last week. Other data from Greater China showing that gross gaming revenue in Macau fell less than expected in December boosted shares of US casino operators. Shares of Wynn Resorts Ltd, Las Vegas Sands Corp and Melco Resorts & Entertainment Ltd rose between 2 per cent and 4 per cent. Advancing issues outnumbered declining ones on the NYSE by a 1.74-to-1 ratio; on Nasdaq, a 1.41-to-1 ratio favoured advancers. The S&P 500 posted 59 new 52-week highs and one new low; the Nasdaq Composite recorded 115 new highs and 15 new lows. Volume on US exchanges was 7.61 billion shares, compared to the 6.85 billion-share average for the full session over the last 20 trading days.

Wall Street begins 2020 with new records in China, catalyses economy and trade hopes

Equities continued to rally on the second day of the new calendar year with benchmark indices closing 0.8 per cent higher due to global gains and stellar performance domestically by infrastructure majors. 
 
Finance Minister Nirmala Sitharaman recently announced a Rs 102 lakh crore infrastructure project pipeline for the next five years, a move that is likely to help the country nearly double GDP's size to five trillion dollars by 2025. 
 
The <a href="https://www.wionews.com/business-economy/equity-indices-close-in-the-green-adani-ports-gains-by-31-per-cent-271482">BSE S&amp;P Sensex</a> closed 321 points up at 41,627 while the Nifty 50 edged higher by 100 points at 12,283. 
 
Except for <a href="https://www.wionews.com/business-economy/indian-shares-slip-on-year-end-profit-booking-nifty-set-for-13-jump-in-2019-271230">Nifty IT</a> which wound up 0.03 per cent lower, all sectoral indices at the <a href="https://www.wionews.com/business-economy/equities-begin-2020-on-a-positive-note-led-by-metal-stocks-271361">National Stock Exchange</a> were in the green with Nifty metal shoring up by 2.68 per cent, bank by 1.04 per cent and realty by 0.92 per cent. 
 
Among stocks, auto major <a href="https://www.wionews.com/business-economy/market-closing-sensex-ends-17-points-lower-nifty-at-12256-271060">Tata Motors</a> gained by 5.1 per cent intraday to close at Rs 193.85 after global research firm Citi maintained a buy rating on the stock with a target of Rs 200. The firm has a positive stance on JLR recovery while domestic commercial vehicle and passenger vehicle volumes remained weak in December. 
 
But the overall rally was led by infra-led stocks, especially metal majors. Tata Steel gained by 4.3 per cent, JSW Steel by 3.2 per cent, Vedanta by 3.1 per cent and <a href="https://www.wionews.com/business-economy/sensex-rallies-by-413-points-to-scale-new-high-nifty-closes-at-12165-268755">Hindalco</a> by 2.4 per cent. 
 
Aditya Birla-led UltraTech Cement and Grasim added gains of 4.2 per cent and 3 per cent respectively while engineering major Larsen &amp; Toubro edged higher by 2.6 per cent. Private sector lender IndusInd Bank ticked up by 3.2 per cent. 
 
However, <a href="https://www.wionews.com/business-economy/sensex-falls-by-298-points-psu-banks-underperform-270367">Eicher Motors</a> fell by 2.3 per cent while Bajaj Auto, Bharat Petroleum Corporation, Cipla and Tata Consultancy Services closed in the red. 
 
Meanwhile, <a href="https://www.wionews.com/business-economy/global-markets-asian-shares-lower-as-investors-book-decade-end-profits-271229">Asian shares</a> were buoyed by Chinese markets after Beijing eased monetary policy to support slowing growth. Investors also cheered news that the United States and China will sign a trade pact soon after a year of volatile negotiations between the world's two largest economies. 
 
In China, the <a href="https://www.wionews.com/business-economy/sensex-falls-181-points-to-close-at-4146126-nifty-at-1221455-270010">Shanghai Composite Index</a> was 1.15 per cent higher but Seoul's Kospi began the year down by 1.02 per cent. Markets in Japan were closed for a national holiday. 
 
US President Donald Trump said on Tuesday that phase one of the <a href="https://www.wionews.com/world/us-china-phase-one-trade-deal-to-be-signed-january-15-trump-271308">trade deal</a> with China will be signed on January 15 at the White House, though uncertainty surrounds details about the agreement.

Equities continued to rally on the second day of the new calendar year with benchmark indices closing 0.8 per cent higher due to global gains and stellar performance domestically by infrastructure majors.

Equities continued to rally on the second day of the new calendar year with benchmark indices closing 0.8 per cent higher due to global gains and stellar performance domestically by infrastructure majors. Finance Minister Nirmala Sitharaman recently announced a Rs 102 lakh crore infrastructure project pipeline for the next five years, a move that is likely to help the country nearly double GDP's size to five trillion dollars by 2025. The BSE S&P Sensex closed 321 points up at 41,627 while the Nifty 50 edged higher by 100 points at 12,283. Except for Nifty IT which wound up 0.03 per cent lower, all sectoral indices at the National Stock Exchange were in the green with Nifty metal shoring up by 2.68 per cent, bank by 1.04 per cent and realty by 0.92 per cent. Among stocks, auto major Tata Motors gained by 5.1 per cent intraday to close at Rs 193.85 after global research firm Citi maintained a buy rating on the stock with a target of Rs 200. The firm has a positive stance on JLR recovery while domestic commercial vehicle and passenger vehicle volumes remained weak in December. But the overall rally was led by infra-led stocks, especially metal majors. Tata Steel gained by 4.3 per cent, JSW Steel by 3.2 per cent, Vedanta by 3.1 per cent and Hindalco by 2.4 per cent. Aditya Birla-led UltraTech Cement and Grasim added gains of 4.2 per cent and 3 per cent respectively while engineering major Larsen & Toubro edged higher by 2.6 per cent. Private sector lender IndusInd Bank ticked up by 3.2 per cent. However, Eicher Motors fell by 2.3 per cent while Bajaj Auto, Bharat Petroleum Corporation, Cipla and Tata Consultancy Services closed in the red. Meanwhile, Asian shares were buoyed by Chinese markets after Beijing eased monetary policy to support slowing growth. Investors also cheered news that the United States and China will sign a trade pact soon after a year of volatile negotiations between the world's two largest economies. In China, the Shanghai Composite Index was 1.15 per cent higher but Seoul's Kospi began the year down by 1.02 per cent. Markets in Japan were closed for a national holiday. US President Donald Trump said on Tuesday that phase one of the trade deal with China will be signed on January 15 at the White House, though uncertainty surrounds details about the agreement.

Sensex gains by 321 points as Nifty closes on high record, Tata Motors on top winner

Fresh signals of the United States and China closing in on phase one of the trade deal were given after US President Donald Trump and his Chinese counterpart <a href="https://www.wionews.com/world/want-to-work-out-preliminary-trade-deal-with-united-states-not-afraid-of-retaliating-chinese-president-jinping-263827">Xi Jinping </a>undertook a telephonic conversation on Friday.

After the phone call, <a href="https://www.wionews.com/world/had-good-talk-with-chinese-president-xi-formal-signing-is-being-arranged-donald-trump-269409">Trump </a>tweeted that he had a "very good talk" with Jinping over the trade deal. He also said that China has already started making large scale purchases of agricultural and other products from China.&nbsp;

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Had a very good talk with President Xi of China concerning our giant Trade Deal. China has already started large scale purchaes of agricultural product &amp; more. Formal signing being arranged. Also talked about North Korea, where we are working with China, &amp; Hong Kong (progress!).
— Donald J. Trump (@realDonaldTrump) <a href="https://twitter.com/realDonaldTrump/status/1208045488156614659?ref_src=twsrc%5Etfw">December 20, 2019</a></blockquote>
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"Had a very good talk with President Xi of China concerning our giant Trade Deal. China has already started large scale purchaes of agricultural product &amp; more. Formal signing being arranged. Also talked about North Korea, where we are working with China, &amp; Hong Kong (progress!)," Trump tweeted.

Jinping also welcomed the talks with the US President and said that phase one of the trade truce will benefit both the nations and the entire world.

Both the US and China have finalised phase one of the deal on the "principle of equality and mutual respect for each other", Jinping said.&nbsp;

The phase one the deal is expected to see China boost US imports of agricultural and other goods, while, the US, in return, will ease massive tariffs against the imports of the Asian giant.&nbsp;

Jinping also said that trade between both the countries will help in making "significant contributions to the stability and development of China-US relations and the advancement of the world economy," reported Chinese state news agency Xinhua.&nbsp;

However, Xinhua's report added that Jinping expressed "serious concerns" over US's recent stance on Taiwan, Hong Kong, Xinjiang and Tibet. &nbsp;

Jinping "noted that the US behaviours have interfered in China's internal affairs and harmed China's interests, which is detrimental to the mutual trust and bilateral cooperation," Xinhua said.&nbsp;

The Chinese president hopes Washington "pay high attention and attach great importance to China's concerns," the report added.

(with inputs from AFP and Reuters)

&nbsp;

Fresh signals of the United States and China closing in on phase one of the trade deal were given after US President Donald Trump and his Chinese counterpart Xi Jinping undertook a telephonic conversation on Friday.

Fresh signals of the United States and China closing in on phase one of the trade deal were given after US President Donald Trump and his Chinese counterpart Xi Jinping undertook a telephonic conversation on Friday. After the phone call, Trump tweeted that he had a "very good talk" with Jinping over the trade deal. He also said that China has already started making large scale purchases of agricultural and other products from China. Had a very good talk with President Xi of China concerning our giant Trade Deal. China has already started large scale purchaes of agricultural product & more. Formal signing being arranged. Also talked about North Korea, where we are working with China, & Hong Kong (progress!). — Donald J. Trump (@realDonaldTrump) December 20, 2019 × "Had a very good talk with President Xi of China concerning our giant Trade Deal. China has already started large scale purchaes of agricultural product & more. Formal signing being arranged. Also talked about North Korea, where we are working with China, & Hong Kong (progress!)," Trump tweeted. Jinping also welcomed the talks with the US President and said that phase one of the trade truce will benefit both the nations and the entire world. Both the US and China have finalised phase one of the deal on the "principle of equality and mutual respect for each other", Jinping said. The phase one the deal is expected to see China boost US imports of agricultural and other goods, while, the US, in return, will ease massive tariffs against the imports of the Asian giant. Jinping also said that trade between both the countries will help in making "significant contributions to the stability and development of China-US relations and the advancement of the world economy," reported Chinese state news agency Xinhua. However, Xinhua's report added that Jinping expressed "serious concerns" over US's recent stance on Taiwan, Hong Kong, Xinjiang and Tibet. Jinping "noted that the US behaviours have interfered in China's internal affairs and harmed China's interests, which is detrimental to the mutual trust and bilateral cooperation," Xinhua said. The Chinese president hopes Washington "pay high attention and attach great importance to China's concerns," the report added. (with inputs from AFP and Reuters)

Donald Trump, Xi Jinping give positive signals on trade deal after phone call

Indian markets opened on the last day of the week with huge gains led by metal, banks and auto stocks as the trade tension between the United States and China eased.

The BSE Sensex was up 350.24 points or 0.86 per cent to 40,931.95 points, while the NSE Nifty rose to 91.55 points or 0.76 per cent to 12,063.35 points.&nbsp;

On the <a href="https://www.wionews.com/business-economy/sensex-nifty-close-on-positive-note-led-by-metals-and-banks-267902">last session</a>, the 30-share index closed 169.14 points, or 0.42 per cent, higher at 40,581.71, while the Nifty rose 61.65 points or 0.52 per cent, to 11,971.80.&nbsp;

Earlier, the US has agreed to remove some tariffs on Chinese goods and reduce others in exchange for Beijing's commitments to increase purchases of US farm products in 2020, claimed news agency Reuters.&nbsp;

The US President Donald Trump also tweeted on Thursday that Washington is on the verge of a "big" deal with China.

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<blockquote class="twitter-tweet">
Getting VERY close to a BIG DEAL with China. They want it, and so do we!
— Donald J. Trump (@realDonaldTrump) <a href="https://twitter.com/realDonaldTrump/status/1205134155853574145?ref_src=twsrc%5Etfw">December 12, 2019</a></blockquote>
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In the 30-share-index, Tata Motors was the top gainer, rising up to 3.78 per cent. The shares of Vedanta, Yes Bank, Tata Steel, SBI, M&amp;M, Axis Bank and RIL were also in the green in the Sensex-pack. Bharti Airtel was the biggest loser in the BSE Sensex, shedding up to 0.59 per cent.&nbsp;

Miner Vedanta gained big in the early trade in Nifty 50 index, rising 4 per cent.&nbsp; 
&nbsp; 
In the early trade, the rupee continued its strong run and appreciated by 33 paise to 70.50 against the US dollar.&nbsp;

Elsewhere, in Shanghai, Tokyo and Hong Kong, markets were trading higher due to positive cues from US-China trade truce.&nbsp;

Indian markets opened on the last day of the week with huge gains led by metal, banks and auto stocks as the trade tension between the United States and China eased.

Indian markets opened on the last day of the week with huge gains led by metal, banks and auto stocks as the trade tension between the United States and China eased. The BSE Sensex was up 350.24 points or 0.86 per cent to 40,931.95 points, while the NSE Nifty rose to 91.55 points or 0.76 per cent to 12,063.35 points. On the last session, the 30-share index closed 169.14 points, or 0.42 per cent, higher at 40,581.71, while the Nifty rose 61.65 points or 0.52 per cent, to 11,971.80. Earlier, the US has agreed to remove some tariffs on Chinese goods and reduce others in exchange for Beijing's commitments to increase purchases of US farm products in 2020, claimed news agency Reuters. The US President Donald Trump also tweeted on Thursday that Washington is on the verge of a "big" deal with China. Getting VERY close to a BIG DEAL with China. They want it, and so do we! — Donald J. Trump (@realDonaldTrump) December 12, 2019 × In the 30-share-index, Tata Motors was the top gainer, rising up to 3.78 per cent. The shares of Vedanta, Yes Bank, Tata Steel, SBI, M&M, Axis Bank and RIL were also in the green in the Sensex-pack. Bharti Airtel was the biggest loser in the BSE Sensex, shedding up to 0.59 per cent. Miner Vedanta gained big in the early trade in Nifty 50 index, rising 4 per cent. In the early trade, the rupee continued its strong run and appreciated by 33 paise to 70.50 against the US dollar. Elsewhere, in Shanghai, Tokyo and Hong Kong, markets were trading higher due to positive cues from US-China trade truce.

BSE Sensex, NSE Nifty witness huge gains in early trade

Global equities mostly retreated Tuesday after US President Donald Trump warned there was no deadline for doing a trade deal with China.

The announcement added to trade uncertainty already stoked by the United States reimposing tariffs on Argentina and Brazil, threatening France with steep levies -- and warning China of possible new measures if ongoing talks fall through.

Trump, in Britain for a NATO summit, warned that efforts to resolve a trade dispute could wait until after next November's US election.

"I have no deadline," Trump told reporters upon his arrival.

"In some ways I like the idea of waiting until after the election for the China deal."

Trump's trade war with China and on-again-off-again attempts to reach a deal have destabilised markets and stoked geopolitical tensions.

'Another turn lower'&nbsp;

"The chances of a deal by December 15 just took another turn lower," said Markets.com analyst Neil Wilson.

"After weeks of making generally positive noises on a deal being very close, there is a real sense now that a deal is not so very near at all and markets need to reprice," Wilson added.

As recently as last week Trump boasted that he was in the "final throes" of negotiating "one of the most important deals in trade ever".

But Washington has since courted Chinese anger by expressing support for Hong Kong protesters.

Optimism that Beijing and Washington will eventually hammer out a partial agreement as part of a wider deal had supported equities for weeks, helping Wall Street to set numerous records.

Wine and cheese&nbsp;

But investor sentiment was dealt a blow on Monday when Trump said he would reinstate tariffs on steel and aluminium from Argentina and Brazil whom he accused of manipulating their currencies and hurting US farmers.

Later, officials warned they would also hit France with up to 100 per cent levies on $2.4 billion in goods, saying a French digital tax was discriminatory against US tech firms such as Google, Apple and Amazon.

Sparkling wine, yoghurt and Roquefort cheese could be affected as soon as next month, while US Trade Representative Robert Lighthizer warned his office was also considering similar moves against Austria, Italy, and Turkey.

On Tuesday, France vowed a "strong" response to any tariffs.

Oil prices were firmer ahead of a key meeting of OPEC and other major producers, which is expected to see them maintain output cuts into June, with speculation they could go on until the end of 2020.

Key figures around 1645 GMT&nbsp;

London - FTSE 100: DOWN 1.8 percent at 7,158.76 points (close)

Frankfurt - DAX 30: UP 0.2 percent at 12,989.29 (close)

Paris - CAC 40: DOWN 1.0 percent at 5,727.22 (close)

EURO STOXX 50: DOWN 0.4 percent at 3,610.99

New York - Dow: DOWN 1.4 percent at 27,392.08

Tokyo - Nikkei 225: DOWN 0.6 percent at 23,379.81 (close)

Hong Kong - Hang Seng: DOWN 0.2 percent at 26,391.30 (close)

Shanghai - Composite: UP 0.3 percent at 2,884.70 (close)

Euro/dollar: UP at $1.1085 from $1.1078 at 2145 GMT

Pound/dollar: UP at $1.3000 from $1.2939

Euro/pound: DOWN at 85.25 pence from 85.63

Dollar/yen: DOWN at 108.56 from 108.98 yen

Brent North Sea crude: UP 0.2 percent at $61.03 per barrel

West Texas Intermediate: UP 0.2 percent at $56.08&nbsp;

Global equities mostly retreated Tuesday after US President Donald Trump warned there was no deadline for doing a trade deal with China. The announcement added to trade uncertainty already stoked by the United States reimposing tariffs on Argentina and Brazil, threatening France with steep levies -- and warning China of possible new measures if ongoing talks fall through.

Global equities mostly retreated Tuesday after US President Donald Trump warned there was no deadline for doing a trade deal with China. The announcement added to trade uncertainty already stoked by the United States reimposing tariffs on Argentina and Brazil, threatening France with steep levies -- and warning China of possible new measures if ongoing talks fall through. Trump, in Britain for a NATO summit, warned that efforts to resolve a trade dispute could wait until after next November's US election. "I have no deadline," Trump told reporters upon his arrival. "In some ways I like the idea of waiting until after the election for the China deal." Trump's trade war with China and on-again-off-again attempts to reach a deal have destabilised markets and stoked geopolitical tensions. 'Another turn lower' "The chances of a deal by December 15 just took another turn lower," said Markets.com analyst Neil Wilson. "After weeks of making generally positive noises on a deal being very close, there is a real sense now that a deal is not so very near at all and markets need to reprice," Wilson added. As recently as last week Trump boasted that he was in the "final throes" of negotiating "one of the most important deals in trade ever". But Washington has since courted Chinese anger by expressing support for Hong Kong protesters. Optimism that Beijing and Washington will eventually hammer out a partial agreement as part of a wider deal had supported equities for weeks, helping Wall Street to set numerous records. Wine and cheese But investor sentiment was dealt a blow on Monday when Trump said he would reinstate tariffs on steel and aluminium from Argentina and Brazil whom he accused of manipulating their currencies and hurting US farmers. Later, officials warned they would also hit France with up to 100 per cent levies on $2.4 billion in goods, saying a French digital tax was discriminatory against US tech firms such as Google, Apple and Amazon. Sparkling wine, yoghurt and Roquefort cheese could be affected as soon as next month, while US Trade Representative Robert Lighthizer warned his office was also considering similar moves against Austria, Italy, and Turkey. On Tuesday, France vowed a "strong" response to any tariffs. Oil prices were firmer ahead of a key meeting of OPEC and other major producers, which is expected to see them maintain output cuts into June, with speculation they could go on until the end of 2020. Key figures around 1645 GMT London - FTSE 100: DOWN 1.8 percent at 7,158.76 points (close) Frankfurt - DAX 30: UP 0.2 percent at 12,989.29 (close) Paris - CAC 40: DOWN 1.0 percent at 5,727.22 (close) EURO STOXX 50: DOWN 0.4 percent at 3,610.99 New York - Dow: DOWN 1.4 percent at 27,392.08 Tokyo - Nikkei 225: DOWN 0.6 percent at 23,379.81 (close) Hong Kong - Hang Seng: DOWN 0.2 percent at 26,391.30 (close) Shanghai - Composite: UP 0.3 percent at 2,884.70 (close) Euro/dollar: UP at $1.1085 from $1.1078 at 2145 GMT Pound/dollar: UP at $1.3000 from $1.2939 Euro/pound: DOWN at 85.25 pence from 85.63 Dollar/yen: DOWN at 108.56 from 108.98 yen Brent North Sea crude: UP 0.2 percent at $61.03 per barrel West Texas Intermediate: UP 0.2 percent at $56.08

Global stocks rattled after Donald Trump says no 'deadline' on US-China trade deal

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