The Trump-Xi summit has generated renewed optimism about easing trade tensions between the U.S. and China, with analysts suggesting the dialogue could pave the way for a broader economic agreement.
However, the meeting also highlighted deep-seated concerns, particularly around the sensitive issue of Taiwan.
Chinese President Xi Jinping issued a stark warning to Trump, emphasizing the potential for a 'highly dangerous situation' if the Taiwan issue is mishandled.
The diplomatic overture has already begun to influence, with Chinese equities showing signs of stabilization.
Yet, the underlying risks remain significant.
The recent context of heightened geopolitical tensions, including Xi's warning and Trump's confirmation of arms sales discussions to Taiwan, suggests that the path forward is far from smooth.