After months of trade tensions, China and the United States appear to be on the verge of reaching a major deal that could affect global markets, including crypto. Officials from the two countries announced at high-level meetings in Kuala Lumpur that they had reached a preliminary agreement on key trade and economic issues.
Li Chenggang, China's trade representative, described the talks as "open and constructive" and stressed that a preliminary framework had been established and was now being reviewed for domestic approval in both countries. US Treasury Secretary Scott Besant also expressed optimism, saying China was ready to finalize an agreement that would prevent Donald Trump's proposed 100% tariff on Chinese goods. The comprehensive framework is set to be discussed at an upcoming meeting between the US and Chinese presidents.
If the deal is finalized, easing tensions could restore investor confidence and allow capital to flow back into riskier assets, including Bitcoin. Conversely, a breakdown in negotiations could intensify selling pressure in riskier markets.
