Signs of a potential thaw in the long-standing trade friction between the United States and China emerged on Sunday, after officials from both nations expressed a renewed willingness to reopen trade discussions — a move that has boosted market confidence heading into the new week.
In a statement translated from Mandarin, China’s Ministry of Commerce said it is “prepared to deepen dialogue” with global partners regarding trade and the recently implemented restrictions on rare earth exports — a policy that has been at the heart of recent disputes with Washington.
Chinese representatives added that the government may “actively review” sections of the rare earth policy to promote smoother trade relations and reinforce global supply chains, even hinting at potential “license exemptions” for certain exports.
On the same day, U.S. President Donald Trump released his own message on Truth Social, writing:
“Don’t worry about China, it will all be fine! Highly respected President Xi just had a bad moment. He doesn’t want depression for his country, and neither do I. The USA wants to help China, not hurt it!!!”
The announcement follows a volatile week triggered by China’s rare earth export controls, which led to a sharp reaction from Trump on Friday — an event that coincided with one of the largest crypto market liquidations in history.
Now, with both sides signaling a softer tone, investors are hopeful that the latest exchange could mark the beginning of a broader de-escalation, easing the global market turbulence caused by Trump’s previous tariff measures.
Analysts See Room for a Market Bounce
“If Trump follows through with a diplomatic response on Sunday, we could see a strong rebound when markets open Monday,” wrote analysts at The Kobeissi Letter, noting how sensitive financial markets have become to the U.S. President’s public statements.
Just two days earlier, Trump dismissed the possibility of meeting Chinese President Xi Jinping at the upcoming APEC summit in Seoul, citing Beijing’s new export restrictions. He even announced a new round of 100% tariffs as retaliation.
Yet not everyone believes the standoff will last. Jeff Park, an advisor at Bitwise Asset Management, argued that the meeting between Trump and Xi is inevitable.
“It’s not really about tariffs,” Park said. “Trump thrives on historic moments, grand ceremonies, and photo opportunities — and this summit offers all of that.”
For now, investors and analysts alike are watching closely. If Sunday’s softer rhetoric translates into action, it could be the first step toward restoring stability to both global and crypto markets after months of escalating tension.
