Hope but few detailsWorries about China’s economic recovery sent stocks and U.S. futures lower on Tuesday morning, despite a promising meeting on Monday between the country’s top leader, Xi Jinping, and Secretary of State Antony Blinken in Beijing.
The discussions raised hopes that the world’s two biggest economies might stabilize relations, but the market reaction points at the deeper challenges for policymakers and business.
There was no agreement or detail on the most contentious issues: restrictions on Chinese access to advanced technologies; accusations that the U.S. and its allies want to contain Beijing’s ambitions; Taiwan; the war in Ukraine.
“Distrust remains high,” said Noah Barkin, a specialist on China relations at the research firm Rhodium Group.
“For international investors, this is not enough to trigger any sort of rethink with regard to the Chinese market.” The Biden administration, he said, would continue screening strategic investments into China and Beijing showed no signs of easing pressure on foreign firms operating in the country.
Persons:
Xi Jinping, Antony Blinken, Xi, Biden, Blinken, ”, Noah Barkin
Organizations:
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Locations:
Beijing, California, Taiwan, Ukraine, China