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Watch Live: Trump Receives China's Xi, Delivers Initial Remarks

Tyler Durden's Photo
by Tyler Durden
Authored...

LIVE: Arrival Ceremony and initial Trump-Xi remarks:

The moment of President Xi's arrival at the White House:

For more of our analysis and what to expect:

Read: Mr. Xi Comes To Washington: What Wall Street Banks Are Expecting

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Chinese stocks slipped overnight as the two-month extension of the US-China trade truce fell short of some Wall Street expectations (some desks were hoping for +6 months), offering limited reassurance that today's talks would deliver a long-lasting trade deal, stabilize bilateral ties, and ease uncertainty over global trade.

The mainland CSI 300 Index dropped 1.7%, while the Hang Seng China Enterprises Index pared losses and closed flat. Broader Asian equities also came under pressure after a global bond selloff gathered pace as investors responded to stronger-than-expected US economic data on Wednesday and weak Treasury auction demand amid increasing fears of further Federal Reserve tightening

The two-month truce extension through Jan. 10 removes an immediate source of uncertainty but falls short of the three-to-six-month extension some Wall Street desks were hoping for. 

As we detailed in an overnight note titled "Mr. Xi Comes To Washington: What Wall Street Banks Are Expecting," President Trump rolled out the red carpet for President Xi Jinping at Joint Base Andrews on Wednesday.

Xi's first White House visit since September 2015 includes bilateral talks, a South Lawn ceremony and a black-tie dinner later today with technology executives including Nvidia's Jensen Huang, Tesla/SpaceX's Elon Musk and OpenAI's Sam Altman. Private tea with the Trumps and a National Archives visit are also on the books. 

The high-level diplomatic visit comes as unresolved disputes mount. Trade talks center on the duration of the tariff truce, a proposed "Board of Trade" arrangement covering roughly $30 billion in goods on each side, and potential Chinese purchases of soybeans, Boeing aircraft and LNG. Rare earth supplies, technology restrictions, Iran and Taiwan also loom over the summit.

On the AI front, low-cost Chinese open-weight models are pressuring US frontier labs and eroding moats. Restrictions on advanced chips, allegations that Chinese companies distilled US models, and a proposed AI hotline add another layer to negotiations.

The broad expectation across JPMorgan, Deutsche Bank, TD Cowen and Raymond James is that the summit will produce limited breakthroughs. Wall Street's focus now shifts to how long the truce lasts and whether either side makes concrete concessions.

Earlier this morning, former acting deputy US Trade Representative Wendy Cutler told Bloomberg TV that the temporary US-China trade truce extension signals Trump's dissatisfaction with Beijing's rare earth exports and agricultural purchases.

It's a "way, way shorter time than China had hoped for; China wanted to extend that truce until the end of Trump's term," Cutler told Bloomberg's Heidi Stroud-Watts.

She continued, "We're at a point in our relationship with China where big deliverables are just no longer possible, and we're talking about managing the relationship and keeping it stable, but not improving and strengthening it."

Matt Maley, a veteran Wall Street strategist and chief market strategist at Miller Tabak + Co., wrote in a note that the two-month extension may disappoint investors who were hoping for a longer-term deal and may not bode well for equities. "A lot of investors that I have been speaking to were hoping for a six-month extension," he said.

Read what JPMorgan, Deutsche Bank, TD Cowen and Raymond James have to say here.

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