Is US-China trade deal ‘done’? Anil Singhvi shares whether D-Street investors should rejoice yet

US-China Trade Deal: In a move that could mark a dramatic shift in global trade dynamics, US President Donald Trump on Wednesday declared that a trade deal with China “is done”, subject to final approval from Chinese President Xi Jinping. 

The announcement, made via Truth Social (Trump’s own social media platform), comes after two days of intense negotiations in London and is already sending ripples through the financial world.

For Indian markets, the big question remains.

Also Read:US-China trade deal “done,” pending final sign-off With Xi Jinping: Donald Trump  

Is this a moment to cheer, or should investors tread cautiously?

According to Zee Business Managing Editor and market expert Anil Singhvi, “Whenever Trump makes a big post, markets initially react with excitement, but investors must remember — with Trump, optics often come before outcomes. The final signature is still pending.”

Key takeaways from Trump’s post:

• China will resume supply of rare earth metals — critical for electronics, defence and EVs.
• The US, in return, will allow Chinese students access to its universities.
• Trump claims a 55 per cent gain for the US versus just 10 per cent for China.
• Both leaders to “work closely” to expand US-China trade ties.

While the fine print remains unclear, the optics suggest progress in resolving the tech and mineral export standoff that had intensified during Trump’s presidency.

Also Read:Anil Singhvi recommends buying 3 oil and gas PSUs and selling 2; check stop losses and targets 

Why Rare Earths matter to the market

Rare earth elements are the backbone of modern electronics, from smartphones and semiconductors to military equipment. With China controlling over 90 per cent of global processing capacity, any disruption or thaw in this space directly affects global supply chains — including India’s.

“Even a signal that the rare earths impasse may ease is positive news for sectors like auto, electronics and green energy,” said Singhvi. “But traders must wait for official confirmation from Beijing before turning too bullish,” he added.

Caution advised despite market optimism

While the deal promises a win-win framework, Singhvi noted a familiar pattern, “Trump is known for headline-making claims. But in global markets, claims are not contracts. D-Street should watch how China responds.”

There’s also macroeconomic uncertainty as the US Treasury Secretary Scott Basent recently warned that failing to raise the debt limit could trigger a recession worse than 2008 — a reminder that US domestic politics could overshadow trade euphoria.

What should Indian investors do?

• Remain watchful: The deal isn’t final until China confirms.
• Look for cues: Official statements from Beijing and White House will be key.
• Sector spotlight: Stocks in tech, green energy, and auto could see speculative interest.
• Avoid overreaction: Wait for clarity before repositioning your portfolio. “In today’s market,” Singhvi adds, “sentiment shifts in seconds. Stay calm, stay informed, and never bet on a tweet alone.”