Beijing is to propose a reversal of Trump-era China policies during the first high-level meeting with Biden officials

The Wall Sreet Journal reported earlier that Beijing is to propose a reversal of Trump-era China policies during the first high-level meeting with Biden officials, sources said

China is to propose lifting of US sanctions and restrictions on Chinese companies, party members, sources said. 

Key notes

China plans to ask US to roll back Trump policies in the Alaska meeting according to the WSJ.

Chinese officials plan to propose re-establishing regular high-level meetings between China and US according to the WSJ.

Chinese officials also plan to propose scheduling a virtual summit between Xi Jinping; Biden in April during a global conference on climate change according to the WSJ.

China also plans to propose that both countries create a "vaccine passport" to verify proof of immunization according to the WSJ.

Market implications

Meanwhile, as Biden cabinet officials prepare to meet with the Chinese in Alaska on Thursday, the meeting is expected to be a contentious first high-level engagement between the new administration and Beijing.   

Secretary of State Antony Blinken and President Biden’s national security adviser Jake Sullivan will be meeting face-to-face with Chinese foreign minister Wang Yi and top Chinese diplomat Yang Jiechi in Anchorage.

China is expected a lot from this meeting, especially considering that Blinken already announced earlier this week that the US is sanctioning 24 Chinese officials over an overhaul of election laws earlier this month.

The US has accused Beijing of an effort to “unilaterally undermine Hong Kong’s electoral system.” 

Markets will be tuned in to this meeting for a feel of where things are headed between the two economic powers. 

Risk-off will likely favour the US dollar if history is anything to go by when the dollar rallied during the trade wars under the Trump administration.