China foreign ministry: Says presidents Xi, Trump did not have call recently; says US, China have not conducted negotiations, consultations on tariffs

China foreign ministry: Says presidents Xi, Trump did not have call recently; says US, China have not conducted negotiations, consultations on tariffs

The ongoing trade dispute between the United States and China has seen recent developments that have added layers of complexity to the negotiations. According to a recent statement from the Chinese Foreign Ministry, Presidents Xi Jinping and Donald Trump did not have a call recently, contradicting Trump's earlier claims of a direct communication from Xi [1]. This revelation comes amidst reports of China quietly rolling back some of its tariffs on US-made semiconductors, a move that has been seen as an attempt to ease tensions [1].

China has been at the center of a trade war since April 2023 when the US imposed a 34% retaliatory tariff on Beijing. In response, China increased its tariffs on US goods to 34%, leading to a trade war that has seen US goods imported to China face 125% taxation, while Chinese goods imported in the US have faced 145% levies [1]. Despite this, China has reportedly exempted some US-made semiconductors from its 125% tariffs, a move that could signal a softening of the trade war stance [1].

The Chinese Foreign Ministry's statement that no recent negotiations or consultations on tariffs have taken place adds a new dimension to the ongoing trade dispute. This stands in contrast to the earlier claims by US President Trump that Xi Jinping had called him, suggesting a potential shift in the diplomatic landscape [1]. The lack of direct communication between the two leaders could indicate a period of stalemate in the negotiations, with each side maintaining their respective positions.

The trade dispute has also had significant implications for the cryptocurrency market, particularly for AI-related tokens. According to The Kobeissi Letter, Bessent has predicted a 2-3 year timeline for a potential resolution to the US-China trade standoff, placing the decision-making onus on China [2]. This prediction has led to increased volatility in cryptocurrency markets, with AI tokens like SingularityNET (AGIX) and Fetch.AI (FET) experiencing notable price drops following the announcement [2].

As the trade dispute continues to evolve, investors and financial professionals must stay vigilant and monitor developments closely. The lack of direct negotiations and the potential for a prolonged resolution could lead to further market uncertainty. Traders should consider short-term trading strategies such as scalping or swing trading to capitalize on the increased volatility in AI tokens, while also hedging their positions to mitigate risk [2].

References:
[1] https://www.livemint.com/news/us-news/did-xi-jinping-call-donald-trump-claims-contact-with-beijing-as-china-eases-us-made-semiconductor-tariffs-11745582875997.html
[2] https://blockchain.news/flashnews/us-china-tariff-standoff-bessent-predicts-2-3-year-deal-timeline-amidst-trading-uncertainty