Chinese tech stocks are going bananas after Trump said he had a 'good conversation' with Xi Jinping on trade

trump xi jinping

  • President Donald Trump tweeted on Thursday that he had a ‚good conversation‘ with Chinese President Xi Jinping.
  • Xi on Thursday said he looks forward to meeting with Trump at the G20 in Argentina, according to China’s state media.
  • Chinese tech stocks traded in the US are surging across the board.

Chinese tech stocks traded in the US are surging Thursday after President Donald Trump said he had a good trade talk with Chinese President Xi Jinping.

„Just had a long and very good conversation with President Xi Jinping of China,“ Trump tweeted Thursday morning. „We talked about many subjects, with a heavy emphasis on Trade. Those discussions are moving along nicely with meetings being scheduled at the G-20 in Argentina. Also had good discussion on North Korea!“

Xi on Thursday said he looks forward to meeting with Trump in Argentina and hopes the two sides build stable relations, according to China’s state media. Earlier this year, the Trump administration imposed tariffs on $250 billion worth of Chinese goods, prompting Beijing to retaliate. 

Chinese tech stocks are rallying across the board after what the market is taking as a positive step on the trade front. Here’s the scoreboard as of 1:54 pm. ET on Thursday:

Thursday’s rally comes after tech stocks witnessed a brutal sell-off in October that saw the Nasdaq Composite tumble 9.2%, posting its worst month since the financial crisis.

Meanwhile, Chinese stocks have been under pressure this year amid trade conerns and slowing domestic economy. The Shanghai Composite has plunged by as much as 26% this year to its lowest level since November 2014. Shares have bounced back a bit, but still lost 22% this year so far.

Here’s a timeline of the US-China trade war so far:

  • March 1: President Donald Trump announces tariffs on all imports of steel and aluminum, including metals from China.
  • March 22: Trump announces plans to impose a 25% tariff on $50 billion worth of Chinese goods. China announces tariffs in retaliation to the steel and aluminum duties and promises a response to the latest US announcement.
  • April 3: The US trade representative announces a list of Chinese goods subject to the tariffs. There is a mandatory 60-day comment period for industries to ask for exemptions from the tariffs.
  • April 4: China rolls out a list of more than 100 US goods worth roughly $50 billion that are subject to retaliatory tariffs.
  • May 21: After a meeting, the two countries announce the outline of a trade deal to avoid the tariffs.
  • May 29: The White House announces that the tariffs on $50 billion worth of Chinese goods will move forward, with the final list of goods released June 15. The move appears to wreck the nascent trade deal.
  • June 15: Trump rolls out the final list of goods subject to new tariffs. Chinese imports worth $34 billion would be subject to the new 25% tariff as of July 6, with another $16 billion worth of imports subject to the tariff at a later date. China retaliates with an equivalent set of tariffs.
  • June 18: Trump threatens a 10% tariff on another $200 billion worth of Chinese goods.
  • July 6: The first tranche of tariffs on $34 billion worth of Chinese goods takes effect; China responds in kind.
  • July 10: The US releases an initial list of an additional $200 billion worth of Chinese goods that could be subject to a 10% tariff.
  • August 1: Washington more than doubles the value of its tariff threats against Beijing, announcing plans to increase the size of proposed duties on $200 billion worth of Chinese goods to 25% from 10%.
  • August 3: China says it will impose tariffs of various rates on another $60 billion worth of US goods if Trump moves forward with his latest threat.
  • August 7: The US announces that the second tranche of tariffs, which will hit $16 billion worth of Chinese goods, will go into effect on August 23.
  • August 23: The US imposes tariffs on another $16 billion worth of Chinese goods, and Beijing responds with tariffs on $16 billion worth of US goods.
  • September 7: Trump says the tranche of tariffs on $200 billion worth of Chinese goods is coming „soon“ and threatens to impose tariffs on another $267 billion worth of Chinese goods.
  • September 17: Trump announces 10% tariffs on $200 billion worth of Chinese goods, saying China has „been unwilling to change its practices.“
  • September 18: China says it has „no choice“ but to retaliate to the fresh tariffs „to safeguard its legitimate rights and interests.“ It announces tariffs on $60 billion worth of US goods sent to China.
  • September 24: Trump‘s new round of tariffs against China on $200 billion worth of imports went into effect. 

 

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Source: Business insider

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