As Biden and Xi Sit Down in Bali, Stakes Remain High

U.S. President Joe Biden is meeting Chinese President Xi Xinping today in Bali on the sidelines of the G-20 summit and the stakes remain high.

China is facing a weakening economy owing to its strict COVID-19 lockdowns and the two countries don’t see eye to eye on a number of issues including Taiwan, Hong Kong, and Xinjiang.

Further, economic and trade tussle between the two superpowers continues, with the U.S. placing restrictions on key exports of chips to China with an aim to protect its technological edge.

Chinese stocks, in the meantime, are only beginning to come off their multi-year lows, after U.S. auditors recently completed on-site inspections ahead of schedule and China began easing off COVID-19 restrictions.

The first face-to-face meeting between the two leaders since President Biden became president remains critical, and could pave the way for better communications and handling of key issues between the two countries.

While the Direxion Daily Semiconductor 3x Bull Shares ETF (SOXL) has surged 75% over the past month, the Direxion Daily FTSE China Bull 3x Shares ETF (YINN) is still down ~2.5% during this period despite showing some strength.

Here are some related tickers to this news:

• JD.Com (JD)
• Baidu (BIDU)
• NIO (NIO)
• XPeng (XPEV)
• Li Auto (LI)
• Pinduoduo (PDD)
• Alibaba  (BABA)
• NIO (NIO)
• XPeng (XPEV)

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