
China calls for more engagement with US, warns against confrontation
Wang made the comments during a meeting in Beijing with a delegation of US businesses that include executives from Goldman Sachs, Boeing and Apple, the ministry said.
'China is willing to enhance engagement with the US, avoid misjudgment, manage differences, and explore cooperation,' Wang was quoted as saying.
His remarks came a day after top Chinese and US negotiators wrapped up a latest round of trade talks in Stockholm, with both sides agreeing to seek an extension of their 90-day tariff truce struck in May.
Wang said that China-US relations are affected by global developments and exert a 'profound impact' on international dynamics.
'China and the US need to establish more channels of communication and consultation, view each other objectively, rationally, and pragmatically, and foster a correct strategic perception,' he said, urging both countries to reject 'unilateralism and bullying'.
He encouraged US companies to maintain confidence in the Chinese market, and welcomed them to continue to invest in China, the ministry statement said.
A high-level delegation of US executives is visiting China this week and has also met with China's commerce and industry ministers.
The trip comes as Beijing and Washington work towards a summit between the two countries' leaders later this year, probably around the time of the APEC forum in South Korea from October 26 to November 1, sources previously told Reuters.
US President Donald Trump said on Tuesday he thinks he will meet with Chinese President Xi Jinping before the end of the year, but did not elaborate.
Hashtags

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles


Business Recorder
11 minutes ago
- Business Recorder
Wall Street Week Ahead: AI gains and strong earnings support Wall Street as tariff woes linger
NEW YORK: With more than half of second quarter earnings reported and stocks near record highs, company results have reassured investors about the artificial intelligence trade that has energized Wall Street, even if tariff worries curtailed buying. With results in from 297 of the S&P 500 companies as of Thursday, year-on-year earnings growth for the second quarter is now estimated at 9.8%, up from 5.8% estimated growth on July 1, according to LSEG data. Next week investors will get a peek at earnings from Dow Jones Industrial Average constituents Disney, McDonald's and Caterpillar, for a look at the broader economy. Strong profit reports for these companies could propel the Dow, trading just shy of its December record high, to a fresh peak. Some 81% of the companies have beaten analyst expectations on earnings, above the 76% average for the past four quarters. 'The earnings season has been unambiguously better than expected,' Art Hogan, chief market strategist at B. Riley Wealth in Boston, said. The strength of corporate earnings is particularly reassuring for investors after the pummeling sentiment took in the prior quarter due to the twin threats of tariffs and worries over flagging economic growth. 'The first quarter was a bit more mixed and you had some questionable economic data ... which I think gave the market some pause,' said Tim Ghriskey, senior portfolio strategist at Ingalls & Snyder in New York. 'But the second quarter seems to have just been a turnaround,' Ghriskey said. The strength of results for names linked to the artificial intelligence trade - the investment thesis that AI will be a transformative force, driving a significant portion of future economic growth and company profits - is particularly heartening, investors and analysts said. 'Overall it has been mega caps, growth/technology/AI that is driving a lot of the results,' Ghriskey said. 'This is where we want to be exposed in terms of companies ... we're at maximum equity exposures and we're comfortable there.' Having boosted the market for several quarters, the trade ran into rough waters at the start of the year as the emergence of Chinese-founded artificial intelligence startup DeepSeek rattled investors, stoking concerns over heightened competition that could disrupt the dominance of established tech giants at the heart of the AI trade, including Nvidia. Strong results from Microsoft and Meta Platforms reassured investors that massive bets on AI are paying off. Worries over AI demand appear overblown, Macro Hive research analyst Viresh Kanabar said. The trade related tumult earlier this year prompted many investors to pare equity exposure, particularly to higher-risk growth stocks. Even after the market rebound - the S&P 500 is up about 6% for the year and near a record high - institutional investors have been slow to return to equities. Overall, investors' equity positioning is still only modestly overweight, according to Deutsche Bank estimates. Strength in earnings from AI and technology names could draw more investors and lift markets further in coming weeks, analysts said. 'If you are trying to beat your benchmark and you were underweight any of the AI names you have to chase them,' B. Riley Wealth's Hogan said. After S&P 500's 2.2% gain in July, the seasonally volatile months of August and September, markets might face some short-term turbulence, Hogan said. Historically, August has marked a pick-up in stock market gyrations that peaks in October. August kicked off with stocks selling off sharply on Friday as new US tariffs on dozens of trading partners and Amazon's unimpressive earnings weighed on sentiment, while a weaker payrolls report added to risk aversion. But any near-term market pullback should be seen as a buying opportunity, especially in some of the mega-cap, technology names, Hogan said. With big AI names, Alphabet, Microsoft, Nvidia, Meta Platforms and Amazon, commanding about a quarter of the weight in the S&P 500, the health of the AI trade bodes well for the market at an index level, analysts said.


Business Recorder
11 minutes ago
- Business Recorder
Latam FX rises after US economic worries weigh on dollar
BRASILIA: Most Latin American currencies firmed on Friday as the dollar tumbled after signs of a cooling US labor market complicated the Federal Reserve's policy path, while investors also scrutinized the latest US tariff comments. US job growth slowed more than expected in July while the prior month's figures were revised sharply lower, data showed, indicating that the labor market could be showing signs of stalling, adding to some hopes of an interest rate cut in September. 'A higher likelihood of lower US rates can make the dollar relatively less attractive and that is a very favorable headwind for Latin American currencies; we are seeing quite a bit of relief' said Pablo Riveroll, fund manager & global head of equities research at Schroders. The dollar index edged down 0.9% following the data, boosting most emerging market currencies. The MSCI index tracking Latin America currencies was up 0.4%, set for marginal gains this week. Still, a recovery in the dollar this week after a US-European Union trade deal hit the euro had stalled the momentum in emerging markets, with broader indexes tracking developing market stocks and currencies heading for weekly declines. Meanwhile, investors globally were also grappling with a fresh set of US tariffs imposed on dozens of trade partners, that will come into effect on August 7. In Latin America, Brazil's real was up 0.8% and was on track for its biggest one-week rise in over a month as the country secured exemptions from 50% US tariffs on key exports. The local government expects to announce next week measures of a contingency plan it has been preparing to help businesses to cope with the levies.


Express Tribune
an hour ago
- Express Tribune
Recalibrating economic diplomacy
Listen to article Pakistan's recent tariff agreement with the United States represents a strategic economic reprieve, offering both immediate relief and new diplomatic complexity. Concluded on July 31, 2025, the deal reduces average US import tariffs on Pakistani goods to 19%, sparing the country from facing duties as high as 29% under the sweeping "Liberation Day" tariff regime. In public statements, President Donald Trump praised Pakistan for concluding the agreement and linked the arrangement to potential US-led investment in Pakistan's oil reserves described as "massive" and awaiting development by an American energy firm. This link between trade relief and resource cooperation is not merely economic; it is deeply strategic and reshapes how Islamabad must now balance its external relations. The lowered tariffs provide necessary support for Pakistan's export-heavy industries, especially textile and agriculture. These sectors are particularly vulnerable to shifts in international market access and the trade deal ensures they keep a foothold in a critical market. The United States accounts for more than 18% of Pakistan's total exports, with textile forming the largest share. According to the Pakistan Bureau of Statistics and Comtrade data, Pakistan's exports to the US totaled $6.8 billion in 2024, where garments, home textiles and Basmati rice dominated the basket. Without the tariff deal, these exports would have suffered a blow to competitiveness amid rising global trade friction and a high-cost domestic environment. While the 19% tariff is lower than the expected punitive rate, it remains significant and still puts Pakistani goods at a disadvantage compared to nations with free trade arrangements. Moreover, as noted in recent US Trade Representative and World Trade Organisation (WTO) policy reviews, Pakistan's limited value-added export base and low integration into global value chains compound this vulnerability. Reliance on a small range of low-tech exports leaves the country exposed to even minor regulatory or tariff shifts in destination markets. Consequently, while the tariff reprieve helps to maintain the status quo access, it does little to elevate long-term competitiveness unless paired with structural reforms and diversification. In the agreement, the US interest in oil exploration adds an additional layer of economic opportunity wrapped in political complexity. Trump's announcement that the US is selecting a company to explore Pakistan's underutilised hydrocarbon reserves reflects Islamabad's long-standing ambition to improve domestic energy security. The country imports over 85% of its oil needs, straining foreign exchange reserves. Development of indigenous resources could reduce the oil import bill, which has hovered around $16-18 billion annually, according to the State Bank of Pakistan's (SBP) balance of payments reports. However, the actual scale and viability of these reserves remain uncertain, with decades-old geological surveys offering mixed assessments. Operationalising such projects would also require massive infrastructure, political stability in energy-rich provinces like Balochistan and a long-term framework for investor protection where Pakistan has historically underperformed. The trade deal and broader foreign inflows have helped boost foreign reserves in the near term. SBP data showed reserves at $17.1 billion in late July 2025, a notable improvement from the $11.7 billion recorded in early June. This level, while modest, provides coverage for roughly two months' worth of imports, a widely accepted threshold for external stability in emerging markets. However, this uptick was not solely due to the US deal. A combination of IMF tranches, World Bank support and Chinese refinancing also contributed. In April 2025, the World Bank approved a $20 billion 10-year financing plan aimed at supporting structural reforms and development spending, according to official press releases. These multilateral disbursements are conditional on Pakistan meeting governance and fiscal performance criteria, including tax reform, energy pricing rationalisation and public sector enterprise restructuring. The real test now is whether Pakistan uses this improved position to break from a cycle of dependency and move towards structural transformation. Previous instances of relief from China, the IMF or Saudi Arabia have been absorbed without addressing core economic bottlenecks. The World Bank has repeatedly noted Pakistan's narrow tax base, inefficient energy sector and bloated public sector as critical constraints on long-term resilience. Tariff concessions and resource development deals may plug short-term gaps, but without institutional reform, they fail to build foundations for self-sustaining growth. Export competitiveness must come from productivity, innovation and scale, not merely diplomatic accommodations. The diplomatic implications of this pivot towards the US must be carefully managed. China remains Pakistan's largest bilateral creditor, with outstanding loans exceeding $29 billion, much of which is tied to the China-Pakistan Economic Corridor (CPEC). Increased US presence in Pakistan's strategic sectors, particularly energy, may be perceived by Beijing as a dilution of its regional influence. That said, the diversification of economic partnerships can be beneficial, if handled with transparency and strategic foresight. Pakistan must avoid falling into a pattern of transactional diplomacy, where short-term economic gains compromise long-term geopolitical stability. The United States' overt linkage of economic relief with strategic energy cooperation is not unprecedented. It places pressure on Pakistan to deliver both policy continuity and project viability in a highly sensitive sector. American investors and companies will likely demand regulatory clarity, security guarantees and swift bureaucratic facilitation; areas where Pakistan's record is mixed at best. Failing to deliver could stall progress and sour diplomatic momentum. On the other hand, fulfilling these expectations could catalyse institutional improvements and signal a new direction for foreign investment governance. Pakistan's US tariff deal is a welcome development that buys time and space for reform. But it does not alter fundamentals of the economy, which still suffers from a narrow export capacity, underdeveloped institutions and unsustainable external financing models. If treated as an opportunity rather than a solution, the deal can serve as a bridge to broader transformation. But if viewed merely as a relief, it risks becoming another milestone in a recurring pattern of short-term fixes. The challenge for Islamabad is not in securing the next loan, concession or headline agreement. The real challenge lies in building an economy that no longer needs them. The writer is a member of PEC and holds a Master's in Engineering