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Watch for Trump’s First Visit to China in Nearly 10 Years, Potentially Boosting Risk Assets

Capital market12 May 2026 13:31 GMT+7

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Watch for Trump’s First Visit to China in Nearly 10 Years, Potentially Boosting Risk Assets

Recently, global stock markets and assets have faced heavy volatility due to geopolitical pressures, especially the escalating war tensions between the United States and Iran in the Middle East.

However, investors now seem to be "refocusing" and temporarily overlooking these negative factors, with all attention fixed on the major global event tomorrow (13 May): President Donald Trump's visit to China, a significant diplomatic and economic milestone that could reshape future investment trends.


Trump’s first visit to China in nearly 10 years.

Previously, U.S. President Trump and Chinese President Xi Jinping last met face-to-face in October 2025 on the sidelines of the Asia-Pacific Economic Cooperation (APEC) summit in Busan, South Korea.

Now, in May 2026, the world is poised to witness another historic moment as the two leaders are officially scheduled to meet.

President Trump is set to visit China from 13 to 15 May 2026 amid ongoing tensions from the still-heated Middle East situation.

This Beijing visit is especially significant as it marks the first time in nearly a decade that a U.S. leader has set foot in China since the last visit in 2017.

Throughout 2025-2026, senior officials from both sides have met repeatedly to prepare for this summit, aiming to ease trade tensions and strengthen bilateral relations between the two global economic powers.


Potential positive impact on risk assets.

Analysts find this event particularly noteworthy. Asia Plus Securities Research Division assesses the global investment market outlook, noting that crude oil prices remain tight and elevated. The protracted conflict entering its third month is clearly impacting global inflation figures.

For example, China's latest economic data shows the Producer Price Index (PPI) for April 2026 surged to 2.8%, the highest increase in over four years and well above market expectations of 1.8%, while the Consumer Price Index (CPI) rose 1.2% year-on-year.

Nevertheless, despite rising inflation and war conditions, U.S. stock markets have become "accustomed" and chosen to overlook these concerns, buoyed by confidence in the artificial intelligence (AI) technology theme.

Moreover, the key factor gaining the market's greatest focus is the China visit from 13-15 May 2026, with the White House signaling economic optimism by including top CEOs such as Elon Musk of Tesla, Tim Cook of Apple, and Kelly Ortberg of Boeing in the delegation.

This aligns with the perspective of Innovest Securities Company Limited, which predicts that if the talks between President Trump and President Xi Jinping later this week yield positive outcomes, it will be a crucial catalyst to alleviate concerns and encourage capital flows back into global risk assets.


Looking back: How did the markets react to Trump’s 2017 China visit?

Nearly 10 years ago, from 8-10 November 2017, when President Donald Trump last officially visited Beijing, the atmosphere was notably warm and friendly.

A key highlight was the historic signing of bilateral business cooperation agreements worth over $250 billion, covering sectors from aircraft, mobile phones, and auto parts to energy, sparking hope that the trade war might not be as severe as feared.

This positive development energized global investment markets, led by the U.S., with the Dow Jones, S&P 500, and Nasdaq indices all reaching record highs.

U.S. industrial and technology stocks benefited from the trade deal and expectations of Trump’s tax reform policies, accelerating massive capital inflows into Wall Street.

At the same time, the Thai stock market also gained from the global easing sentiment, with foreign capital inflows pushing the Thai index above the 1,700-point resistance level.

Data from that period serves as a case study for investors assessing the current situation. If tomorrow’s Trump-Xi meeting results in concrete agreements or conciliatory stances, there is a strong chance history will repeat, acting as a positive factor to unlock and attract capital into global risk assets again.


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