After several high-level meetings in Kuala Lumpur, officials from China and the United States confirmed that they had reached preliminary agreements on major trade and economic issues, a development that could reshape global market sentiment in the coming weeks.
China’s Representative for International Trade, Li Chenggang, described the talks as “open and constructive,” emphasizing that discussions centered on export controls, tariff suspensions, and new measures to enhance bilateral trade cooperation. Li added that both sides had achieved a “pragmatic preliminary framework,” which now awaits internal review and formal approval in Beijing and Washington.
Trump’s 100% Tariffs May Be Scrapped
U.S. Treasury Secretary Scott Bessent struck an optimistic tone following the talks, saying China is prepared to finalize an agreement that could remove President Donald Trump’s proposed 100% tariffs on Chinese imports. The news suggests that negotiations are now entering their final phase.
Bessent explained that he and Chinese Vice Premier He Lifeng have established a comprehensive framework aimed at preventing another round of tariff escalation and restoring global supply chain stability. Speaking on NBC’s Meet the Press, Bessent confirmed that this framework will form the basis of a direct discussion between President Trump and President Xi Jinping in the coming days.
When asked whether tariffs were still likely, Bessent responded, “No, I don’t expect it,” signaling that both nations are moving toward de-escalation and renewed cooperation.
Implications for Bitcoin and Global Markets
A successful trade deal between the world’s two largest economies could trigger a wave of optimism across global financial markets. Historically, easing trade tensions have supported risk-on sentiment, leading to inflows into equities, commodities, and digital assets.
For Bitcoin, such an outcome could mean a stronger institutional bid and a more supportive liquidity environment, as lower trade uncertainty and improving global growth tend to favor high-yield investments. The U.S. dollar would likely weaken as safe-haven demand declines, redirecting capital toward alternative assets, including cryptocurrencies.
Analysts also suggest that a trade truce could stimulate technology sector investment, indirectly lifting blockchain-related assets and reinforcing bullish sentiment across the broader crypto ecosystem.
If the upcoming Trump–Xi meeting produces concrete commitments, markets could enter a fresh phase of global risk recovery, one where Bitcoin and other digital assets stand to benefit the most.