US-China Relations Thaw Slightly As Both Sides Confirm More Talks, Pledge To Keep Communication Lines Open

China and the U.S. have made further progress in the trade issue, with the Chinese Ministry of Foreign Affairs confirming a telephone conversation between the two countries on Friday.

A statement on the ministry’s website said China’s Vice Foreign Minister Ma Zhaoxu spoke with U.S. Deputy Secretary of State Christopher Landau on Thursday.

The two sides “exchanged views on China-U.S. relations and important issues of common concern,” the statement said, adding that they agreed to continue communicating.

The U.S. Treasury Department confirmed this through a statement on its website. 

“They acknowledged the importance of the bilateral relationship to the people of both countries and the world, discussed a wide range of issues of mutual interest, and agreed on the importance of keeping open lines of communication,” the statement said.

Dan Wang, China director at political risk consultancy Eurasia Group, reportedly said the talks are a positive sign, although they do not indicate a breakthrough in the ongoing trade negotiations.

A trade deal announced on April 12 to suspend the reciprocal tariffs between the U.S. and China helped the market arrest a downslide and launch into a rally. The pact came about after high-level bilateral negotiations held in Geneva, Switzerland. 

Thursday’s conversation should come as a welcome relief after Beijing signaled that it wasn’t too pleased with the U.S.’s stance on trade. A CNN report said China on Monday accused the U.S. of undermining the Geneva talks by urging domestic tech companies to refrain from using Huawei AI chips.

The Asian country has also stuck to its stance that fentanyl is a U.S. problem. 

According to a Reuters report, China advocated multilateralism at the World Trade Organization’s (WTO) two-day meeting in Geneva earlier this week. A Chinese delegation said, “While bilateral talks may sometimes work, China believes multilateralism is the inevitable and ultimate choice to address global challenges.”

The SPDR S&P 500 ETF (SPY) is down 0.2% year-to-date, while the iShares MSCI China ETF (MCHI) has gained 17%.

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