Asian markets rose Friday after a record day on Wall Street in response to Donald Trump's tax-cut pledge, while the yen weakened slightly ahead of an expected interest rate hike by the Bank of Japan later in the day.
Whether it is over TikTok, fentanyl or trade, Beijing might welcome a compromise to buy time to address its ailing economy and bolster its position globally.
Donald Trump unexpectedly held off tariffs on China on his first day back at the White House and did not single it out as a threat, raising the prospect of a rapprochement as both sides look to gain from each other rather than rain harm on an adversary.
China: Asian equities mostly rose Thursday, cheered by another tech fuelled run up on Wall Street after Donald Trump s huge AI investment
Chinese officials and ordinary people are hopeful but on edge as Donald Trump returns to the White House, eager to avoid a repeat of the bruising trade war that drove a wedge between the economic superpowers during his first term.
Beijing is taking a two-pronged approach to the incoming president: trying to sweeten up Trump while also signaling it is ready to fight efforts to constrain it.
Trump advisor Elon Musk has longstanding business ties in China.
Han has used the visit to meet with members of the American business community, including Tesla CEO and close Trump associate Elon Musk, according to Chinese state agency Xinhua. Musk is widely thought to be seen by Beijing as more sympathetic to its interests than others in Trump’s orbit.
A rift has emerged within the Republican Party, largely centred on Elon Musk's influence. His support for the H-1B visa programme has drawn criticism from Trump's base, leading to tensions with key figures like Steve Bannon and Vivek Ramaswamy.
The Chinese acupuncture strategy opposes the blunt force trauma strategy favoured by Trump and his China hawks. The US may be able to replace these supply factors, but it will take time. This will allow China to forge even further ahead in these critical digital areas.
S&P 500 E-Mini futures (ESH25) are down -0.20%, andMarch Nasdaq 100 E-Mini futures (NQH25) are down -0.49% this morning, taking a breather after a strong rally this week, with investors turning their attention to U.