US and China soften trade rhetoric, giving analysts hope of market rebound

CointelegraphPublished on 2025-10-13Last updated on 2025-10-13

Abstract

Tensions between the two countries appear to have cooled off on Sunday, as representatives from both sides signaled a willingness to negotiate.

Trade tensions between the US and China appear to be softening, as representatives from both governments issued statements on Sunday that signaled a willingness to resume trade negotiations, giving analysts hope of a market rebound.

In a translated statement, China’s Ministry of Commerce said it was “ready to strengthen dialogue” with other countries on trade and the recently announced rare earth mineral export controls that inflamed trade tensions between the US and China.

The statement also said China would “actively consider” provisions in the rare earth export policy to facilitate trade and strengthen supply chains, including “license exemptions.”

US President Donald Trump issued this statement on the same day:

“Don’t worry about China, it will all be fine! Highly respected President Xi just had a bad moment. He doesn’t want depression for his country, and neither do I. The USA wants to help China, not hurt it!!!”

China’s rare earth export announcement had prompted a response from Trump on Friday that sent crypto markets crashing in the worst 24-hour liquidation event in crypto history.

The softened rhetoric may signal a de-escalation of tensions between the two countries that could put an end to months of global trade tensions, sparked by Trump’s trade tariffs, which have caused turmoil in financial markets.

Investment analysts and crypto industry executives remain hopeful

“If President Trump responds and de-escalates on Sunday, markets are set for a big jump on Monday. The reactivity of markets to Trump’s posts remains incredibly high,” investment analysts at The Kobeissi Letter wrote on Sunday.

On Friday, Trump said there was “no reason” to meet China’s President, Xi Jinping, at the Asia-Pacific Economic Cooperation (APEC) summit in Seoul, Korea, scheduled to kick off on Oct. 31, in response to China’s rare earth export control announcement.

Trump also announced additional 100% tariffs on China as a countermeasure to the proposed rare earth export controls.

However, Jeff Park, an adviser at investment company Bitwise, said that the meeting between Trump and Xi Jinping is “guaranteed to happen.”

“It has nothing to do with tariffs,” Park argued, adding that Trump will attend the meeting because he is motivated by “historic memorabilia, photo ops, and lavish ceremonies to secure his immortality.”

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