#US-China relations

#US-China relations

China's exports rebounded in November after an unexpected contraction the previous month, pushing its trade surplus past $1 trillion for the first time, according to data released Monday. Exports climbed 5.9% from a year earlier in November while imports rose just under 2%. The customs data released on Monday also showed that shipments to the U.S. dropped nearly 29% year-on-year. But as trade with the U.S. weakens, China is diversifying its export markets throughout Southeast Asia, Africa, Europe and Latin America.

A bipartisan group of United States senators, including prominent Republican China hawk Tom Cotton, has unveiled a bill that would block the administration of President Donald Trump from loosening rules restricting Beijing's access to artificial intelligence chips for 2.5 years. The bill, unveiled on Thursday, is known as the SAFE CHIPS Act and was filed by Republican Senator Pete Ricketts and Democrat Chris Coons.

TikTok, one of the world's most popular social media platforms, announced Wednesday that it will build its first data center in Latin America in Brazil, near the city of Fortaleza. The project represents a $38 billion investment. The Chinese company's supercomputers, which have revolutionized the internet with their short videos that are followed by hundreds of millions of users, will be operational in 2027 and will be powered exclusively by 100% renewable energy, according to a TikTok statement.

You don't want to cut half of the people, half of the students from all over the world that are coming into our country-destroy our entire university and college system-I don't want to do that,

Speaking on CBS's Face the Nation, Bessent said the transaction would be formally endorsed by President Donald Trump and China's President Xi Jinping during a bilateral meeting in Korea later this week. "We reached a final deal on TikTok," Bessent said. "We reached it in Madrid, and I believe all the details are ironed out. It will be for the two leaders to consummate that transaction."

In my view, the easing of tensions between the United States and China has been the primary catalyst behind this surge, since markets have long considered the trade relationship between the world's two largest economies a direct threat to global trade flows and supply chains, especially when tariff rhetoric dominated the scene. The recent agreement between U.S. and Chinese negotiators on key issues gives markets a long-awaited breather and paves the way for a meeting between Trump and Xi that could cement these understandings.

The dollar index traded within a narrow range on Monday as easing US-China tensions provided support to the greenback. Market sentiment improved slightly after President Donald Trump signalled that broad tariffs on China would be unsustainable and negotiators from both sides confirmed plans for renewed talks in the coming days. Any progress this week could reinforce risk appetite and support the dollar, while setbacks could quickly reverse the tone.

Stocks had been heading for a slight gain in the morning, until Trump took to his social media platform and said he's considering "a massive increase of tariffs" on Chinese imports. He's upset at restrictions China has placed on exports of its rare earths, which are materials that are critical for the manufacturing of everything from consumer electronics to jet engines.