The U.S. and China have ended their first day of trade talks with the conversation set to continue tomorrow morning. Sources close to the matter said that the discussion lasted approximately six hours.
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Treasury Secretary Scott Bessent said that it was a “good meeting” while Commerce Secretary Howard Lutnick described the negotiations as “fruitful.” Neither Bessent nor Lutnick provided any additional details. From the White House, President Trump said that the talks were going well and that he would like to see China open up for trade.
Semiconductors and Rare Earths a Key Topic for U.S.-China Negotiations
Front and center on the bargaining table are the removal of export restrictions for both sides. The U.S. is considering easing export restrictions on semiconductors, plane parts, and ethane in exchange for China increasing its flow of rare earths to the U.S.
Last year, the U.S. exported $143.22 billion of goods to China and imported $438.74 billion, resulting in a goods trade deficit of $295.51 billion. That deficit stands at $88.02 billion year-to-date as of April.
The iShares China Large-Cap ETF (FXI) benefitted more than the S&P 500 (SPX) from the first day of trade talks and closed Monday with a 1.23% gain.
