China's Vice Premier He Lifeng held a video conference with US Treasury Secretary Scott Bessent and US Trade Representative Jamieson Greer, according to the headline. The direct channel between senior trade and financial officials is typically read by markets as a signal of de-escalation in bilateral trade friction, which can compress the risk premium on Chinese assets and reduce demand for dollar-denominated safe-haven positioning. Transmission runs primarily through risk appetite and tariff expectations: a perceived thaw tends to support Chinese equities and the yuan while easing pressure on the dollar as traders unwind hedges built around escalation scenarios. The Treasury market may also react through inflation-expectation channels, since lower expected tariff costs reduce pressure on import prices. The next concrete catalyst traders will watch is any official readout or joint statement detailing concrete commitments, particularly on tariff schedules or export controls, alongside the upcoming US CPI release for signs of tariff pass-through.
China's He Lifeng Engages in Video Talks With US Treasury Chief Bessent and Trade Representative Greer
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