Rabobank’s Global Strategist Michael Every outlines China’s central role in current geopolitical and financial dynamics. Every covers Trump’s visit to Beijing and potential outcomes from US-China talks, questions over a possible Grand Bargain, and China’s leverage over Iran. It also notes Euroclear’s consideration of China onshore bonds and Beijing’s efforts to promote yuan internationalisation.
US-China talks and yuan strategy
“In Eastenders, Trump, with a billionaire CEO entourage, is meeting Xi after posting in Air Force One that he will be asking him “to ‘open up’ China so that these brilliant people can work their magic, and help bring the People’s Republic to an even higher level!””
“Indeed, as some talk of UK Labour going back to the 1970s, the US language is also of Nixon–Mao 2.0, albeit from a very different starting point.”
“Everybody gets how important these talks are, but few consider the full US *and* Chinese contexts, and many takes are coloured by what they think of Trump.”
“We will have to wait and see if we get a Grand Bargain that reshapes geopolitics and geoeconomics – and, yes, imbalances; smaller agreement on tariffs, tech (as the Netherlands protests a US proposal to further bar chip giant ASML from the China market), and even Taiwan; a de minimis Farce Two Trade Deal can-kicking exercise, or a Great Escalation.”
“On which note, some media suggest China might be prepared to put pressure on Tehran, yet the New York Times reports that Chinese firms are plotting arms sales to it.”
(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)
Source: https://www.fxstreet.com/news/china-us-talks-yuan-push-and-geopolitics-rabobank-202605141803
