China has urged the Trump administration to ease national-security limits on Chinese investments in the US, offering what officials described as a potentially enormous investment program in return.
Beijing’s negotiators also want Washington to cut tariffs on imported materials used by Chinese-owned factories operating on US soil, signalling a shift from previous trade talks that centred on boosting Chinese purchases of American exports.
The proposals were tabled during negotiations in Madrid last month, where both sides also reached a framework to allow TikTok to keep operating in the US despite ongoing security concerns.
While Chinese officials earlier mentioned a possible $1 trillion investment, the current size and structure of the offer remain uncertain, and Washington has yet to decide whether to pursue the proposal.
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What to watch for likely market-impacts:
- FX: Any sign of easing US-China tensions could lift risk sentiment, supporting the Australian dollar and Asian currencies.
- Equities: Possible softening of trade barriers could buoy global manufacturing and tech stocks, particularly US firms with China exposure.
- Commodities: Greater cross-border investment could underpin demand for raw materials tied to construction and industrial output.
