- Howard Lutnick, CEO of Cantor Fitzgerald, praised President Trump's handling of US-China relations as "brilliant" amid stabilizing diplomatic efforts.
- Trump's 90-minute call with Xi Jinping on February 4, 2026, yielded mutual invitations for visits, with Trump planning an April trip to Beijing to address trade and technology disputes.
- Tensions persist over rare earth export restrictions, Huawei AI chip limits, and new US legislation like the 2026 NDAA, but Trump has prioritized dealmaking over escalation in recent months.
Howard Lutnick, the chief executive of global financial services firm Cantor Fitzgerald, offered a rare public endorsement of President Trump's China policy, calling his approach "brilliant" in comments that underscore a cautious optimism among some business leaders. Lutnick's remarks come as diplomatic channels between Washington and Beijing show signs of life following a February 4 phone call between Trump and Chinese President Xi Jinping.
That 90-minute conversation, described by Trump as producing a "very positive conclusion," included mutual invitations for visits—Trump to Beijing in April and Xi to Washington later—focusing on trade and technology disputes. According to people familiar with the matter, the call helped stabilize a fragile truce where Trump has spared China from broad global tariffs over the past six months, a shift toward prioritizing dealmaking over escalation. Lutnick, whose firm has seen strong revenue growth from bond trading in 2025, framed this as a savvy move, though he did not tie his statement to any specific financial shifts at Cantor Fitzgerald.
Efforts to restructure the fraught US-China relationship have hit snags, however. Tensions linger over China's rare earth export restrictions, imposed in retaliation for US tariffs, and US limits on Huawei AI chips and Chinese student visas. New US laws like the 2026 NDAA, which incorporates the BIOSECURE and FIGHT China Acts targeting Chinese tech and biotech, add another layer of complexity. "What we're seeing is a tactical engagement," one analyst noted, pointing to mutual economic constraints such as China's debt burden. Without a deal, the risk of renewed tariffs or expanded sanctions could inflate costs and further disrupt supply chains, exacerbating global shortages in critical minerals.
Trump has emphasized personal ties with Xi for "win-win" stability, a stance that contrasts with a hawkish Congress pursuing China-targeted legislation. Beijing, for its part, has urged the removal of US "negative measures" on tech and trade, with Xi likening relations to steering a "giant ship" in a signal of mutual respect needs. In a brief statement, a White House spokesperson said the administration is "focused on practical outcomes" ahead of the April summit, though attempts to reach Chinese officials for comment were unsuccessful.
The societal impact is mixed: stakeholders like US farmers may benefit from promised Chinese agricultural purchases and fentanyl curbs, while tech firms grapple with export bans and visa revocations affecting talent flows. Public reactions split along familiar lines, with Trump supporters hailing diplomatic wins and critics arguing concessions could embolden China regionally. Market trends show stabilized trade but rising US outbound investment curbs, potentially shifting manufacturing away from China over time.
Looking ahead, the April Trump-Xi summit offers potential for a more durable trade deal through pre-talks, but unlifted rare earth curbs or midterm political pressures in the US could trigger tariffs. Experts predict a bifurcated policy path, with leader-level deals coexisting alongside legislative hawks; some warn Trump may scapegoat China if inflation rises ahead of the 2026 midterms. For now, Lutnick's praise highlights a segment of the financial world cautiously betting on a "soft landing" in US-China relations, even as imperfections in the diplomatic process remain.
Correction: An earlier version misstated the timing of Trump's planned visit; it is scheduled for April, not March.