President Donald Trump's recent optimistic remarks on negotiations with China have given a boost to U.S.-listed Chinese stocks.
- NIO stock climbed on Wednesday. See the details here.
Trump, speaking on both social media and in public appearances this week, hailed recent U.S.-China trade talks as going “exceedingly well” and highlighted a pending deal to allow TikTok to continue operating in the U.S.
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Chinese tech stocks were also buoyed by reports that Beijing instructed local firms to stop buying NVIDIA Corp. (NASDAQ:NVDA) AI chips and instead use homegrown solutions.
Shares of Alibaba Group Holdings Limited (NYSE:BABA), Baidu, Inc. (NASDAQ:BIDU), NIO Inc.(NYSE:NIO) and JD.com Inc. (NASDAQ:JD) were up due to a powerful combination of enthusiasm about AI, Beijing's policy support for domestic semiconductor development and signs of easing U.S.-China tensions.
President Trump and China's Xi Jinping are expected to have a phone call on Friday to discuss the ongoing truce that has tapered tariffs down to a temporary level, along with ongoing disagreements about technology, rare earths and intellectual property, according to Bloomberg.
Just months ago, the Trump administration imposed a 145% tariff on most Chinese goods. China fired back with hikes of its own, and trade between the two countries came to an almost complete halt.
In the face of warnings from economists about inflation and retailers about product shortages, both sides agreed to a temporary truce to allow time for negotiations.
However, Trump's rhetoric surrounding tariffs remains unpredictable and the threat of a return to much higher tariffs looms if negotiations falter.
Wall Street and investors will be waiting for details from the Friday phone call that could have effects that ripple through the markets and global economies.
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