Alibaba Group Holding Limited (NYSE: BABA) shares, along with the IShares China Large-Cap ETF (FXI) and KraneShares Trust KraneShares CSI China Internet ETF (KWEB), are all up today, coinciding with the visit of U.S. Commerce Secretary Gina Raimondo to China.
Secretary Raimondo began her visit with discussions on national security and bilateral trade. She warned against adopting a zero-tolerance approach to national security concerns. She also highlighted the potential for robust bilateral trade opportunities that wouldn’t compromise sensitive matters, according to a report from the Financial Times.
Raimondo also conveyed the U.S.’s belief that a robust Chinese economy has positive implications. The U.S.-China trade relationship, valued at $700 billion, remains a focal point of her discussions.
Chinese Commerce Minister Wang Wentao expressed openness to collaboration, aiming to create a more favorable policy environment. This partnership, he believes, will “inject a stronger impetus into the global economic recovery.”
However, the road to cooperation is paved with challenges. The U.S. recently imposed fresh sanctions on China’s access to cutting-edge artificial intelligence technology, citing concerns over national security. This move follows a semiconductor technology embargo enacted in 2022. These actions have complicated the relationship between the two superpowers and underscored their ongoing struggles for technological supremacy.
Meanwhile, Beijing grapples with diminishing investor confidence, both foreign and domestic, due to a slowdown in its property sector and exports.
Last week, the U.S. granted China an exemption from certain sanctions, providing a grace period. This decision was influenced by U.S. chip manufacturers like NVIDIA Corporation (NASDAQ: NVDA), who emphasized China’s significant role in the semiconductor industry.
As of press time, Alibaba Group Holding Limited (NYSE: BABA) stock is trading at $91.40, up 1.76% over the last trading session.