Chinese shares rise as Xi, Trump call raises hopes for reconciliation
China’s stocks rose on Monday, following the phone call between U.S. President-elect Donald Trump and Chinese President Xi Jinping, with Trump calling it “a very good one” and Xi saying he and Trump both hoped for a positive start to U.S.-China relations.
The blue-chip CSI300 Index rose 0.9% by the lunch break, building on a 2.1% gain from the previous week. In Hong Kong, the benchmark Hang Seng Index surged 2.3%, marking its biggest jump in five weeks.
In the meantime, Chinese Vice President Han Zheng, in meetings with Tesla CEO Elon Musk and other members of the U.S. business community in Washington ahead of Trump’s inauguration, said he hoped U.S. companies would “take root” in China and help to stabilise bilateral relations, according to the official Xinhua news agency.
Accordingly, the U.S. president-elect made the seemingly conciliatory move of inviting Chinese President Xi Jinping to attend his inauguration on Monday. Xi sent Han in his place, a gesture of goodwill given that China was only represented by its ambassador at the previous two U.S. presidential inaugurations.
At their meeting on Sunday, Han told Musk, appointed by Trump to lead a department aimed at creating a more efficient U.S. government, that he “welcomed Tesla TSLA.O and other U.S. companies” to share in the benefits of China’s development and contribute to China-U.S. relations.
The vice president’s meeting with U.S. businesses was chaired by FedEx FDX.N CEO, Rajesh Subramaniam, on the U.S. side, and included the heads of eight U.S. firms from a range of industries including technology, banking, and logistics, according to an American executive in the room, who added that the meeting overran its allotted time and was very cordial.
“(Han Zheng) is seen as someone, because of his time in Shanghai, who understands the concerns of the foreign business community, he understands the economy,” Michael Hart, president of the American Chamber of Commerce in China, told Reuters in Beijing.
Separately, TikTok began restoring its services on Sunday after Trump said he would revive the app’s access in the U.S. when he returns to power on Monday.
“Frankly, we have no choice. We have to save it,” Trump said at a rally on Sunday ahead of his inauguration, adding that the U.S. will seek a joint venture to restore the short-video sharing app used by 170 million Americans.
