US & China Reach Trade & Investment Agreement Amid BTC Drop

• The US and China have agreed to establish bilateral boards for trade and investment.
• The board will identify which products the US and China can exchange despite tensions.
• Bitcoin’s price experienced bearish pressure following the latest US-China agreement.

According to reports, China and the US have agreed to establish bilateral boards of trade and investment. The boards’ establishment, which will sort out the goods that can flow between the world’s largest economies, represents an achievement in US President Trump’s latest visit to China, and has an initial scope covering tens of billions in trade.

Bringing Structure to the US-China Economic Relationship

Although both nations have agreed to a joint process, there is still significant friction in their commercial relationship. Hence, the newly established US-China Board of Trade and a parallel Board of Investment are considered institutions designed to bring structure to the economic superpowers’ business relationship.

US officials from the White House say the talks between Donald Trump and Xi Jinping have led to several important agreements that could strengthen trade between the two countries and support jobs, farming, and manufacturing in the US. A notable part of the agreement focuses on rare earths and critical minerals, which are crucial to electronics manufacturing, defense systems, and modern technology.

The White House reported that China has agreed to address US concerns over shortages and supply issues involving key minerals, including yttrium, scandium, neodymium, and indium. US officials acknowledged the agreement’s importance, considering how hard it is to replace the materials included in the partnership. According to them, any disruption could have widespread consequences, potentially affecting manufacturing and national security.

Economic Strategist Slams Trump’s Trade Tariffs Regime

Although US officials are commending the latest move by Trump, labelling it an economic achievement, renowned Global Economic Strategist Peter Schiff has other ideas. Schiff compared the government’s target with its latest partnership with China to the historical commercial relationship between the two countries. He noted that China reduced its agricultural purchases from the US because of Trump’s tariffs.

Schiff highlighted that China recorded its highest US agricultural purchases in 2022, noting that the volume was already declining when Trump became President for the second time. However, he described the post-tariff situation as a “collapse.”

Bitcoin Reacts to the US-China Economic Friction

In the meantime, global markets, particularly the risk assets sector, including Bitcoin and cryptocurrency, experienced bearish pressure over the weekend following Trump’s visit to Beijing. For context, Bitcoin has recorded four consecutive bearish days since Friday, declining to $76,509 in the early hours of Monday before rebounding slightly to trade at $77,o19 at the time of writing, according to data from TradingView.

It is worth noting that the latest agreement does not dismiss the existing tension between the two economies. According to reports, the boards’ mandate is to figure out which products can still be exchanged between the US and China amid escalating tensions. 

They will separate the goods into categories of those that can get favorable treatment versus those that remain restricted, particularly sensitive technologies and advanced chips.

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