The official media of the Chinese Communist Party urged the largest global economies to collectively protect hard-won successes from their recent trade discussions, before an important meeting between Donald Trump and Xi Jinping.

On Sunday, trade negotiators from China and the US revealed that they had reached a series of agreements on various topics including tariffs, shipping costs, fentanyl, and export controls during two days of discussions in Malaysia.

This represented a notable easing of tensions, as a new series of tariff threats and reciprocal export restrictions risked undermining the bilateral relationship.

Adopting a conciliatory tone, the People’s Daily stated Monday that the advancements indicated Beijing and Washington could manage their disagreements.

“Neither party was caught off guard by these matters; rather, they concentrated on resolving the issues,” as per the commentary written by Zhong Sheng, a Chinese homonym for “Voice of China” frequently employed to articulate Beijing’s perspectives on foreign policy.

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On Monday, the Hang Seng China Enterprises Index increased by up to 1.3 percent, while the wider MSCI AC Asia Pacific Index climbed 1.5 percent to a fresh intraday high. Yields on China’s 10-year government bonds increased slightly as the demand for safe-haven assets diminished after the favorable outcomes of trade negotiations.

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Xi and Trump are anticipated to agree on the terms this week in South Korea when they meet face-to-face for the first time since the US president regained his position. That meeting might disclose information concerning matters like China’s acquisitions of US soybeans, Washington’s strategies for shipping charges on Chinese ships, and Beijing’s regulations on rare earth exports.

“We anticipate that the leaders will endorse the agreement; however, it is uncertain if it will provide enduring relief to markets — the new status for US-China relations seems to involve regular disruptions and temporary solutions,” assert Chang Shu, David Qu, and Jennifer Welch.

 

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According to China's viewpoint, reduced external uncertainties will allow policymakers to concentrate on bolstering the domestic economy and improving technological self-sufficiency, they noted.