Chinese investors see direction of trade talks as positive, says Allspring's Derrick Irwin

China-US Trade Talks & Geopolitical Factors - Trade talks are important, but the Chinese market rally is driven by more than just trade, including AI advancements and a shift towards pro-growth policies [2] - The direction of travel on trade talks is reasonably positive, with less risk of talks falling apart than progress being made [5] - The Russia issue, particularly Russian oil sales to China, poses a significant risk to trade relations [6][7] - The US is potentially using tariffs and trade policy as a geopolitical tool, creating unpredictability [7] Investment Opportunities in China - Certain sectors of the Chinese market, particularly tech and AI, are expected to perform well [3] - Tencent is well-positioned to exploit AI in China due to its powerful ecosystem of apps [9] - While Alibaba is a good opportunity, Tencent is another major player in China [9] Taiwan's Role - Both sides in the negotiations would prefer to avoid the Taiwan issue, and it is unlikely to be a trade bargaining chip [11]