Trade War Monitor, May 13: Chinese Stocks, Yuan Climb After Tariff Truce With U.S.
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Chinese markets and industries showed swift reactions Tuesday following a breakthrough in the protracted trade standoff between China and the United States. The two sides jointly announced an agreement to temporarily reduce tariffs, offering a 90-day pause for negotiations over broader structural issues.
The yuan strengthened to its highest level since November, reflecting renewed investor confidence. Equities also climbed in early trading, although some gains were later pared back. The rally was led by export-oriented sectors, including lithium battery producers, who welcomed the tariff relief as a “major positive” that could revive U.S.-bound shipments.
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- China and the U.S. agreed to a 90-day pause on new tariffs for trade negotiations, reducing some existing duties but leaving many above 20% in place.
- The yuan strengthened to its highest level since November; Chinese equities initially rose but later gave back gains, with CSI 300 up 0.15% and Hang Seng down 1.87%.
- Chinese buyers remain cautious on U.S. imports; exporters, especially in lithium batteries, welcome tariff relief but await policy clarity before fully resuming shipments.
- Shenzhen Xiangfeiyang Technology Co. Ltd.
- Shenzhen Xiangfeiyang Technology Co. Ltd. is a Chinese clothing exporter that had been holding inventory in warehouses, awaiting the tariff rollback between China and the U.S. Following the tariff reduction, the company's head, Yang Rong, stated they are now waiting for formal notice from U.S. Customs before reaching out to clients, indicating cautious optimism about resuming shipments.
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