Asian equities posted strong gains overnight, led by Japan, which rallied on news of its new trade agreement with the United States.

Expectations are rock-bottom for an EU-China summit on Thursday that will test European resolve and unity as the bloc faces intense trade pressure from both Beijing and the United States, analysts say.

Oct 8, 2024 - China imposes temporary anti-dumping tariffs on EU brandy, hitting brands from Hennessy to Remy Martin. Oct 29, 2024 - The EU approves imposing extra tariffs of up to 35.3% on Chinese-made EVs for five years, but negotiations continue.

President Trump announced deals with Japan, Philippines and Indonesia, but many other countries have yet to clinch agreements.

European companies are facing increasing pressure due to China's alleged currency manipulation to keep its yuan weak, a study by the German Economic Institute showed, as EU leaders prepared for a summit in Beijing aimed at navigating trade disputes.

Treasury Secretary Scott Bessent said he would soon meet top Chinese officials to extend the two countries' trade truce. “China, that deal expires on Aug. 12 and I’m going to be in Stockholm on Monday

China recently banned a foreign Wells Fargo executive and a United States government employee from leaving its territory, spotlighting its opaque judicial and security system and rekindling concerns over the risks facing foreign companies and nationals operating there.

Chinese and European Union leaders will meet in Beijing on Thursday for a summit marking 50 years of diplomatic ties. Here is a timeline of EU-China trade tensions in recent years.