In the latest China news reports, global markets are up after a sudden reversal in US trade policy. President Donald Trump's administration has issued tariff waivers on some Chinese high-tech items, mellowing out tensions in what was otherwise an incendiary trade war.
Though Trump claims no country is "getting off the hook," this exclusion is seen as a step back from the all-encompassing 145% tariffs on Chinese merchandise. China hit back with a request for the US to abolish all tariffs altogether, calling the move a "small step" in the direction of making amends for what it had labeled a "wrong practice."
Stock Markets Rise on Relaxed Tariff Concerns
US stock market lifted at the start of the week, driven by tech euphoria and easing tariff tension on Chinese electronics components. Up to 09:37 AM, big indices advanced:
- Dow Jones Industrial Average: +1.04% to 40,629.09
- S&P 500: +1.34% to 5,435.23
- Nasdaq Composite: +1.68% to 17,005.97
Tech leaders were among top performers:
- Apple surged by 5.4%
- HP rose 4%
- Best Buy rose 5%
The jump comes as investors react favorably to the China news of the softening US tariff stance for tech imports. The CBOE Volatility Index (VIX), a measure of investor anxiety, also declined to 32.95 after spiking to a high last week.
China News Highlight: Rare Earth Exports in Jeopardy
In another development making waves in China news today, Beijing has restricted exports of rare earth minerals, vital for producing smartphones, electric vehicles, and military technologies.
White House economic adviser Kevin Hassett called the move “concerning” and confirmed that the US is “studying the limits very carefully.”
“We’re thinking about all the options right now,” Hassett said.
These minerals, many of which are produced almost exclusively in China, are central to the high-tech manufacturing sector. This move is being viewed as a strategic countermeasure to US tariffs.
In a morning interview with Fox Business, Hassett dismissed concerns about a looming recession, stating:
“We’re 100 percent not expecting a recession.”
US-China Relations and Immigration Diplomacy Intersect
In addition to trade, there is another noteworthy China-related development taking place in Washington. President Trump is hosting El Salvador's President Nayib Bukele at the White House, as part of an effort to build support for his crackdown on immigration.
This follows the disputed deportation of over 200 Venezuelan immigrants, a few of whom had been detained at El Salvador's high-security prison on gang-related charges. The deportees included one, Kilmar Abrego Garcia, who is a legitimate US resident, and was deported by error while he remains in San Salvador against court orders of his repatriation.
The situation has sparked controversy surrounding US immigration policy, human rights, and the accountability of the judiciary during the Trump administration.
Why This China News Matters
These events this week underscore the two-way character of China-US relations, touching on trade, rare earth value chains, and geopolitics.
- ✅ Tech waivers offer temporary relief for US markets but fail to address underlying trade issues.
- ✅ China's rare earth restrictions underscore its leadership in the world tech economy.
- ✅ Diplomatic tensions run high in the competing narratives on trade and immigration.
Stay Tuned for More on China News & US Policy Shifts
In the increasingly heating up US-China rivalry, each tariff exemption, rare earth diplomacy, and diplomatic handshake carries weighty consequences. Bookmark this blog and stay up to speed on our daily insight for the very latest news on China news, US-China trade war, and market impact.