US President Donald Trump arrived in Beijing for the much anticipated high-stakes discussion with Chinese leader Xi Jinping on Wednesday evening.
The two-day summit, on May 14-15, will centre around diplomatic and trade relation between the two countries, and aim to ease long-drawn trade tensions between two of the biggest economies in the world.
Incidentally, trade talks between delegates of the two nations concluded around the same time that Trump landed in China.
Trump's visit, while historic in its own right, turns the spotlight to American companies and sectors with the highest exposure to China.
Shares linked to semiconductors, aerospace, electric vehicles, and agriculture are bound to attract investor attention till the meeting concludes.
Boeing Co., Nvidia Corp., Tesla Inc., Qualcomm Inc. and Apple Inc. are some of the stocks that will be in focus during the visit. Notably, the CEOs of these companies are attending the summit alongside Trump.
To soothe knots between Washington and Beijing, Boeing could be a central bargaining chip as it is a major American exporter. The aerospace giant could be looking at major gains if aircraft orders are renewed by China.
After years of escalating restrictions on technology and supply chains, specifically on chipmakers; bellwether Nvidia and its peers like Microchip Technology, AMD, Qualcomm, and Micron Technology could be looking at an easing of sanctions.
The talks are likely to be focused on reducing fentanyl-related tariffs and easing tech restrictions in exchange for Chinese purchases of US goods.
A deal which provides relaxations in import of Chinese critical minerals and lifts China's ban on Nvidia H200 AI chips would prove to be groundbreaking for the AI sector.
The summit also remains crucial for Apple, which has deployed much of its manufacturing capabilities in China. The country accounted for close to 80% of iPhones shipped to the US last year.
Also, stocks tied to agriculture such as Corteva, Archer-Daniels-Midland, and Bunge Global will also be in focus as America looks to widen its penetration into the Chinese agricultural markets.
Since the meeting is happening in the backdrop of the West Asia crisis and a worldwide energy disruption, energy (particularly LPG) related shares like Dorian LPG Ltd. and StealthGas Inc. would be crucial to watch.
So far, the visit seems to promising with Trump calling the meetings "extremely positive and productive" and Xi emphasising that relations between the two countries can only be improved, not worsened.
ALSO READ: 'Clashes And Conflicts': Xi Jinping Warns Trump — US-China Ties At Risk If Taiwan Issue Mishandled
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