Alibaba Group Holding Limited (NYSE:BABA) stock is trading higher Monday at par with the broader indexes IShares China Large-Cap ETF (NYSE: FXI) and KraneShares Trust KraneShares CSI China Internet ETF (NYSE: KWEB) as U.S. Commerce Secretary Gina Raimondo kicked off a tour of China on Monday.
Raimondo warned against zero tolerance on national security while flagging opportunities in most bilateral trade that did not hamper sensitive issues, Financial Times reports.
Raimondo said the U.S. believed “a strong Chinese economy is a good thing.”
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Raimondo emphasized the importance of the U.S.-China trade relationship, worth $700 billion.
Chinese commerce minister Wang Wentao expressed willingness to work with Raimondo to foster “a more favorable policy environment” and “inject stronger impetus into world economic recovery.”
Both countries share a challenging relationship as the U.S. slapped fresh sanctions on China’s access to cutting-edge artificial intelligence technology after launching a semiconductor tech embargo in 2022, citing national security threats.
Meanwhile, Beijing juggled flagging foreign and domestic investor confidence as a slowdown hit its property sector and exports.
Last week, the U.S. exempted China from its sanctions by offering a grace period after U.S. chipmakers like Nvidia Corp (NASDAQ:NVDA) and others emphasized China’s importance in the semiconductor business.
Price Action: BABA shares traded higher by 1.31% at $91 premarket on the last check Monday.
