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Trump-Xi Meeting in the Cards: ETFs Currently in Focus
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Key Takeaways
U.S.-China tariff cuts could boost Chinese equity and tech ETFs.
China's soybean buying could boost demand for U.S. soybeans.
Trade tensions over AI, chips and rare earths remain key risks.
The United States and China are moving closer to extending their trade truce, with negotiations focusing on selective tariff cuts ahead of the scheduled Sept. 24, 2026 meeting between President Donald Trump and Chinese President Xi Jinping.
The discussions reportedly include lower tariffs on American energy and agricultural products, as well as reduced duties on Chinese inputs used by U.S. manufacturers. The measures are expected to be implemented under an earlier framework covering roughly $30 billion of goods from each side, with some Chinese products potentially receiving most-favored-nation tariff rates, per Bloomberg, as quoted on Yahoo Finance.
Trade Truce Could Ease Global Economic Pressure, Tech Rivalry
Extending the one-year U.S.-China trade truce could reduce one source of uncertainty for the global economy, which is already facing pressure from conflicts in Iran and Ukraine, elevated oil prices and renewed inflation concerns.
Persistent inflation is also keeping borrowing costs high across major economies. However, the outlook for the summit remains cautious as tensions continue over China’s ties with Iran and Russia.
Such situations can improve and become clearer following this agreement, bringing Chinese tech and other ETFs into prominence.
ETFs in Focus
For investors, a reduction in trade barriers could improve the outlook for Chinese equity ETFs while supporting the yuan and China-focused currency exposure. However, the potential benefit is likely to be strongest if the tariff cuts prove durable, as U.S.-China tensions over artificial intelligence (AI), semiconductors and agricultural goods ease.
China Equity ETFs
A sustained reduction in tariffs would remove some pressure on Chinese exporters and manufacturers. Improved trade visibility could also reduce the risk premium investors attach to Chinese equities.
iShares MSCI China ETF (MCHI - Free Report) provides exposure to a broad-market index of large- and mid-cap Chinese companies.
The fund has assets under management worth $6.16 billion. It has an expense ratio of 0.59% and trades with a daily average volume of 2.6 million shares.
Chinese Tech ETFs
Reduced trade restrictions may benefit China tech stocks as well.
KraneShares CSI China Internet ETF (KWEB - Free Report) is a U.S.-listed ETF focused specifically on Chinese Internet and technology-related companies. It trades on the NYSE and tracks the CSIOverseas China Internet Index.
The fund has assets under management worth $4.71 billion. It has an expense ratio of 0.69% and trades with a daily average volume of 19 million shares.
Soybean ETFs
China is one of the world’s largest soybean importers, while the United States ranks as the second-largest exporter after Brazil.
For market year (MY) 2026-27, China has booked 8.98 million metric tons of U.S. soybeans so far, contributing to a sharp increase in total U.S. soybean export commitments. This has pushed soybean exports to 18.9 million metric tons, more than double the year-ago level, according to the U.S. Department of Agriculture data, per S&P Global.
Easing of trade tensions may boost U.S. soybean exports further. Thus, the surge in soybean demand brings soybean ETFs under the spotlight.
Teucrium Soybean Fund (SOYB - Free Report) is a U.S.-listed ETF designed to give investors direct exposure to soybean futures prices.
The fund has assets under management worth nearly $47 million. It has an expense ratio of 2.73% and trades with a daily average volume of about 76,000 shares.
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Trump-Xi Meeting in the Cards: ETFs Currently in Focus
Key Takeaways
The United States and China are moving closer to extending their trade truce, with negotiations focusing on selective tariff cuts ahead of the scheduled Sept. 24, 2026 meeting between President Donald Trump and Chinese President Xi Jinping.
The discussions reportedly include lower tariffs on American energy and agricultural products, as well as reduced duties on Chinese inputs used by U.S. manufacturers. The measures are expected to be implemented under an earlier framework covering roughly $30 billion of goods from each side, with some Chinese products potentially receiving most-favored-nation tariff rates, per Bloomberg, as quoted on Yahoo Finance.
Trade Truce Could Ease Global Economic Pressure, Tech Rivalry
Extending the one-year U.S.-China trade truce could reduce one source of uncertainty for the global economy, which is already facing pressure from conflicts in Iran and Ukraine, elevated oil prices and renewed inflation concerns.
Persistent inflation is also keeping borrowing costs high across major economies. However, the outlook for the summit remains cautious as tensions continue over China’s ties with Iran and Russia.
Such situations can improve and become clearer following this agreement, bringing Chinese tech and other ETFs into prominence.
ETFs in Focus
For investors, a reduction in trade barriers could improve the outlook for Chinese equity ETFs while supporting the yuan and China-focused currency exposure. However, the potential benefit is likely to be strongest if the tariff cuts prove durable, as U.S.-China tensions over artificial intelligence (AI), semiconductors and agricultural goods ease.
China Equity ETFs
A sustained reduction in tariffs would remove some pressure on Chinese exporters and manufacturers. Improved trade visibility could also reduce the risk premium investors attach to Chinese equities.
iShares MSCI China ETF (MCHI - Free Report) provides exposure to a broad-market index of large- and mid-cap Chinese companies.
The fund has assets under management worth $6.16 billion. It has an expense ratio of 0.59% and trades with a daily average volume of 2.6 million shares.
Chinese Tech ETFs
Reduced trade restrictions may benefit China tech stocks as well.
KraneShares CSI China Internet ETF (KWEB - Free Report) is a U.S.-listed ETF focused specifically on Chinese Internet and technology-related companies. It trades on the NYSE and tracks the CSIOverseas China Internet Index.
The fund has assets under management worth $4.71 billion. It has an expense ratio of 0.69% and trades with a daily average volume of 19 million shares.
Soybean ETFs
China is one of the world’s largest soybean importers, while the United States ranks as the second-largest exporter after Brazil.
For market year (MY) 2026-27, China has booked 8.98 million metric tons of U.S. soybeans so far, contributing to a sharp increase in total U.S. soybean export commitments. This has pushed soybean exports to 18.9 million metric tons, more than double the year-ago level, according to the U.S. Department of Agriculture data, per S&P Global.
Easing of trade tensions may boost U.S. soybean exports further. Thus, the surge in soybean demand brings soybean ETFs under the spotlight.
Teucrium Soybean Fund (SOYB - Free Report) is a U.S.-listed ETF designed to give investors direct exposure to soybean futures prices.
The fund has assets under management worth nearly $47 million. It has an expense ratio of 2.73% and trades with a daily average volume of about 76,000 shares.