FX.co ★ China Stocks Rise on Easing Trade Tensions

The Shanghai Composite Index rose by 0.6%, surpassing the 3,900 mark on Tuesday, as it halted a two-day decline. This uptick came amid indications of easing trade tensions between the United States and China, with both countries expressing willingness to resume discussions. On Monday, US Treasury Secretary Scott Bessent announced that President Donald Trump is set to meet Chinese President Xi Jinping in South Korea later this month, as both nations work towards resolving conflicts related to tariffs and export regulations. Additionally, China’s Ministry of Commerce justified its measures on rare earth exports, noting that the United States received prior notification. The ministry clarified that these restrictions are not outright bans but measures intended to safeguard national security and stabilize global supply chains. The rally was driven largely by gains in materials and clean energy sectors, with companies such as China Northern Rare Earth, Inner Mongolia Baotou Steel, Sungrow Power, and Longi Green Energy seeing increases ranging from 1% to 9.5%.