US-China Trade Talks Deemed 'Very Successful' Amid Boost to Risk Appetite
The US and China's trade talks have been hailed as 'very successful' by US Treasury Secretary Bessent, who noted that certain issues are now proceeding to the operational phase. This includes the establishment of a Board of Trade, which will identify $30B of non-critical goods subject to reduced or no tariffs. The list is expected to include energy products, agricultural goods, and possibly medical devices on the US side, while consumer goods and low-tech items from China are also being considered.
The talks have been driven by a fragile trade truce between the two nations, with Chinese executives set to join President Xi's upcoming visit to the US. The agreement is expected to be extended for another year, with no agreement on prior trade truce reached yet. Bessent added that he may meet with a Chinese delegation in November as talks continue.
The positive news has boosted risk appetite globally, with equity markets improving across Asia despite the extended Japanese holiday. Lower oil prices also contributed to the improved sentiment, driven by de-escalation talk and Trump's assertion that the Iran war will end soon.