China Signals Trade Progress, Says Dialogue With U.S. Will Continue

• The U.S. and China pledged to maintain communication after a call between Vice Foreign Minister Ma Zhaoxu and Deputy Secretary of State Christopher Landau, despite ongoing trade tensions.
• China criticized a U.S. warning against using Huawei’s AI chips as “unilateral bullying,” highlighting persistent technology-related friction following a tariff de-escalation agreement.

The U.S.-China relationship remains a complex web of diplomacy and economic friction, as evidenced by a recent call between Chinese Vice Foreign Minister Ma Zhaoxu and U.S. Deputy Secretary of State Christopher Landau. The Chinese Foreign Ministry’s Friday statement highlighted their commitment to ongoing communication, though details of the Thursday discussion were sparse.

This dialogue, as reported by CNBC, follows a tariff de-escalation agreement reached in Switzerland earlier this month, signaling cautious steps toward stabilizing trade relations. However, tensions persist, particularly over technology. China’s Ministry of Commerce sharply criticized a U.S. decision to warn companies against using Chinese-made artificial intelligence chips, specifically those from Huawei Technologies, labeling it “unilateral bullying” that undermines trade negotiations. This rebuke underscores Beijing’s frustration with Washington’s efforts to curb its technological influence, a key sticking point in bilateral ties. The semiconductor sector, critical to global innovation, remains a flashpoint, with Huawei’s chips at the center of U.S. national security concerns. Despite the tariff thaw, both nations continue to exchange pointed rhetoric, reflecting deep-seated mistrust. The U.S. views its restrictions as necessary to protect technological dominance, while China perceives them as efforts to suppress its economic rise. Sustained communication, as pledged in the recent call, is vital to prevent escalation, but bridging the divide requires addressing these contentious issues head-on. Without specific tickers tied to Huawei, a private entity, the broader market implications hinge on how these geopolitical dynamics shape investor confidence in U.S.-China trade stability.

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