China, U.S. ease tensions as Xi assures Trump on Taiwan

November 03, 2025 (MLN):  China and the United States appeared to strike a calmer tone in their relations over the weekend, with signs of progress on trade and assurances over Taiwan helping soothe market jitters in Asia.

U.S. President Donald Trump said Chinese President Xi Jinping had assured him that Beijing would take no action toward unifying Taiwan with the mainland while he remains in office.

Trade relations between the world’s two largest economies appeared to take a turn for the better.

The White House said over the weekend that China would suspend new export controls on rare earth metals and end investigations into U.S. semiconductor firms under a new trade framework agreed by Trump and Xi. Washington, in turn, is pausing some reciprocal tariffs, leaving room for further negotiations, CNBC reported.

The move provided a lift to Hong Kong markets, where the Hang Seng Index rose 0.6% to 26,057.13 at the midday break.

Analysts welcomed the developments as signs of a possible détente, Because China tightly controls rare earths and critical minerals, other countries will likely be more reluctant to raise trade barriers against China moving forward

Meanwhile, gold prices held steady near the flat line as easing trade tensions and a firmer U.S. dollar curbed safe-haven demand.

 The appeal of gold as a safe haven has weakened somewhat amid signs of improving U.S.-China relations.

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