The first official talks between American and Chinese officials are taking place in "neutral" territory in Alaska and are the first ones since Joe Biden was elected President.
According to what is published, the beginning of the talks was characterized by a peculiar "battle" between the two sides as each wants to have the most convenient conditions for any talks to proceed.
During the first contacts, the accusations on both sides were many, with human rights, international trade and copyright protection being in the center of attention.
At this point both leaders seem to want to satisfy their people. Biden does not intend to dramatically change his stance and cancel what his predecessor has imposed, and Xi, on the other hand, wants to reassure the Chinese that his country is now large and mighty and demands its share from the world economy.
Of course, these talks are also of interest to the markets and this is already reflected in the course of Chinese stocks which continue making a correction. The pressures, however, seems to be a desire of the Chinese government, which puts every effort to prevent the creation of any "bubble" that could halt its growth rate.
This justifies the fact that in addition to the well-known controversy with Chinese technological giants, Chinese state capital is far away from market support in an effort to de-escalate prices. In the long run, the estimate that China will provide significant returns remains unchanged.
The fall of China is expected to drag down the Taiwanese market as well. The two stock exchanges have a very high correlation and we believe that there will be convergence in the next period.