The US Defence Secretary will visit China despite the (trade) war of words

The US Secretary of Defence, James Mattis, is set to visit Beijing on Tuesday, the first such visit to China in four years.

a woman

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The US Secretary of Defence, James Mattis, is set to visit Beijing on Wednesday, Australian time, according to Bloomberg, marking the first such visit to China in four years. The last holder of that role to visit the Middle Kingdom while in office was Chuck Hagel in 2014.

The visit comes, of course, in the middle of a war of words (and a — so far — limited imposition of tariffs) between the US and Chinese administrations, and amid the backdrop of the US President's recent summit with North Korean leader Kim Jong-Un. It is the latest in the ongoing unconventional US foreign policy, which is defying convention, either — depending on your perspective — keeping the world on its toes by doing away with established protocol, or evidence of a disjointed and knee-jerk reactionary approach to diplomacy.

Whatever your perspective, though, Secretary Mattis' visit is a high stakes one, coming in the shadow of Chinese President Xi's reported comments, in response to the ongoing tariff dispute, that while the West might turn the other cheek, "…In our culture, we punch back".

It was those comments, at least in part, that saw US markets sink overnight, and our local bourse follow suit today, with the ASX 200 down 0.25% to 6,194.8 points in late afternoon trade. That's a paring back of early losses, after the market opened down 0.75% — and before news of Mattis' visit was confirmed early this afternoon, Australian time.

And of course, in light of China's recent moves in the South China Sea, Secretary Mattis will have a delicate balancing act of pressing the USA's interests, while being mindful of China's view on sovereignty. That is, if Mattis' task is to placate, rather than remonstrate with Xi.

Such are the concerns — and unpredictability — that are keeping global stock markets on the edge of their collective seats. One thing is for sure: the old rules don't apply while Presidents Trump and Xi are at the table.

More on ⏸️ Investing

Close up of baby looking puzzled
Retail Shares

What has happened to the Baby Bunting (ASX:BBN) share price this year?

It's been a volatile year so far for the Aussie nursery retailer. We take a closer look

Read more »

woman holds sign saying 'we need change' at climate change protest
ETFs

3 ASX ETFs that invest in companies fighting climate change

If you want to shift some of your investments into more ethical companies, exchange-traded funds can offer a good option

Read more »

a jewellery store attendant stands at a cabinet displaying opulent necklaces and earrings featuring diamonds and precious stones.
⏸️ Investing

The Michael Hill (ASX: MHJ) share price poised for growth

Investors will be keeping an eye on the Michael Hill International Limited (ASX: MHJ) share price today. The keen interest…

Read more »

ASX shares buy unstoppable asx share price represented by man in superman cape pointing skyward
⏸️ Investing

The Atomos (ASX:AMS) share price is up 15% in a week

The Atomos (ASX: AMS) share price has surged 15% this week. Let's look at what's ahead as the company build…

Read more »

Two people in suits arm wrestle on a black and white chess board.
Retail Shares

How does the Temple & Webster (ASX:TPW) share price stack up against Nick Scali (ASX:NCK)?

How does the Temple & Webster (ASX: TPW) share price stack up against rival furniture retailer Nick Scali Limited (ASX:…

Read more »

A medical researcher works on a bichip, indicating share price movement in ASX tech companies
Healthcare Shares

The Aroa (ASX:ARX) share price has surged 60% since its IPO

The Aroa (ASX:ARX) share price has surged 60% since the Polynovo (ASX: PNV) competitor listed on the ASX in July.…

Read more »

asx investor daydreaming about US shares
⏸️ How to Invest

How to buy US shares from Australia right now

If you have been wondering how to buy US shares from Australia to gain exposure from the highly topical market,…

Read more »

⏸️ Investing

Why Fox (NASDAQ:FOX) might hurt News Corp (ASX:NWS) shareholders

News Corporation (ASX: NWS) might be facing some existential threats from its American cousins over the riots on 6 January

Read more »