To The Moon

Political positioning

China is the world's second largest economy and an economy that big will affect global markets as a whole. US is the world's largest economy and they know if they are not careful withtheir power plays, they run the risk of being displaced. What puts them at an advantage is their technological advancements as well as an economy that penetrates deep into the fabricsof the world's economy. Just think $Coca-Cola(KO)$ and $McDonald's(MCD)$ . They are everywhere and is a household name in almost every country. 

However, they also know the rapid advancements that China has made over the years. And acountry that big and rich in its own history does not 'look up' to the 'American dream' the same way other smaller countries do and do not kow tow the same way they do to survive. And a country that has its own ways of life which is different remains a threat to another country's way if life. Hence these big nations will always be wary of each other. And wary of China the US definitely is. From trade sanctions tothe recent chip restrictions, it is quite obvious they do not fully trust China and it shows fromthe way they are restricting access to 'sensitive' advanced technology and information. 

But the US still needs China. They are too big to ignore. Much like two competitors in college, they will toe each other out, learning from each other but never exposing their backs. So the meeting is just another way of telling the world they are still friends who will scratch eachother's back to survive. And scratch each other they will. They have to! 

China needs to rev up its economy which is still behind others thanks to its covid policies. Itsproperty market needs to be spruced up. US knows how critical China's supply chains are toits own economy. Both knows they cannot afford to go to war with each other. And Biden isrunning for re-election in 2024. He needs a stable economy to lay stake to that and justify his re-election. So it is in the best interest of both sides to make peace to serve each other'swell being. 

So I would expect more of such political positioning in the future. Stability is good for economy which is reflected in the stock markets. 

Thanks for reading!