Bloomberg Talks: Goldman Sachs CEO David Solomon Talks US-China Trade Truce

Date: November 4, 2025
Guest: David Solomon, Chairman & CEO, Goldman Sachs
Host: Bloomberg

Episode Overview

This episode features a candid interview with David Solomon, CEO of Goldman Sachs, as he discusses the shifting state of US-China relations following a crucial presidential meeting, implications for global finance and business, the evolving competitive landscape in Hong Kong, the role of government in corporate deals, the outlook for mergers & acquisitions, and how Goldman Sachs is approaching the rapidly growing influence of artificial intelligence.

Key Discussion Points & Insights

1. The US-China "Trade Truce" and Its Significance

• Solomon’s initial take: The recent summit between US and Chinese presidents is seen as “constructive,” marking a welcome de-escalation, though much work remains for a durable, stable agreement.
• Quote:
  “A de-escalation is a good thing, but there's obviously a lot of work to do to...arrive at a real stable deal that can endure over a period of time.” — David Solomon [00:47]
• Both sides were "purposeful" in seeking a less tense environment, which now makes “constructive conversations” more likely moving forward.

2. The Implications of a One-Year Trade Truce

• On business sentiment: Solomon prefers a 12-month truce over escalating tensions, describing it as a realistic window for reaching a more durable deal.
• Quote:
  “Trade negotiations are complicated…a one year [truce] is also a realistic period of time to try to get the right kind of deal done so both economies can move forward in a constructive way.”— David Solomon [01:42]
• Recognizes continued uncertainty but deems this period necessary for broader, mutual economic benefit.

3. Appetite for Investment in China and Hong Kong

• Market dynamics: After a severe pullback, US investor appetite for Chinese equities and capital raises has increased over the past year, correlating with attractive valuations and improved market conditions.
• Quote:
  “There's more appetite for it than there was 12 months ago...you just knew that things would come more into balance and there'd be a recycling...You've seen more foreign capital come in and start to participate.” — David Solomon [02:53]
• While more IPO activity and inflows are apparent, the “fundamentally different question” remains whether major capital allocators will make larger shifts back into China, which hinges on greater clarity in the geopolitical landscape.

4. Competition in China: Goldman Sachs vs. Chinese Banks

• Competitive context: Despite increased competition from Chinese banks taking Chinese firms public, Solomon remains confident in Goldman Sachs’ strengths.
• Quote:
  “Goldman Sachs competes just fine, thank you very much...We have access to people, information, capital markets all over the world, not just in a narrow portion of the world.” — David Solomon [04:18]
• He cites the firm’s global reach, strength in key business areas, and sustained presence in the region.

5. Goldman Sachs’ Long-term Vision in Greater China

• Strategic commitment: Goldman Sachs positions itself as a truly global firm with deep expertise in banking/markets and asset/wealth management.
• China’s role: As long as China remains one of the world’s most important economies, the firm will maintain a long-term commitment unless geopolitics change drastically.
• Quote:
  “China is going to continue to be one of the most important economies in the world. The US is going to continue to be the most important economy in the world...we have to be long term committed to serving our clients that need access to advice, capital, resources in China and around the world.” — David Solomon [05:30]
• Adapting to regulatory and geopolitical changes is part of the strategy.

6. Government Intervention in Business Deals

• Growing influence: Panelists cite various deals with notable government involvement—Solomon cautions against broad government investment in private companies.
• Quote:
  “I’m not a big fan of that as a general practice...the markets should allow capital formation and competition around companies.” — David Solomon [07:24]
• While exceptions may exist, Solomon believes free markets function best without direct government stakes in enterprises.

7. Global Deal-Making and M&A Outlook

• Constructive environment: Solomon describes the US M&A landscape as extremely constructive with a robust backlog, especially in large-cap deals.
• Refers to a shift from previous regulatory hostility to a more open, albeit cautious, stance: “the answer was no...now...the answer is maybe.”
• Quote:
  “CEOs are unleashed in believing they have a chance...We see a tremendous backlog of significant consolidating situations...Large cap M&A in the United States is up very, very meaningfully year over year.” — David Solomon [08:51]

8. Artificial Intelligence: Operational Impact at Goldman Sachs

• AI application: The firm’s newly announced “Goldman Sachs 3.0” initiative aims to harness AI for efficiency, automation, and growth investments—more than simply reducing headcount.
• Quote:
  “For a firm like Goldman Sachs, there are two avenues here. One, we have very smart people...we can put these tools in their hands and that makes them more productive...Goldman Sachs productivity per person is much higher today than it was 25 years ago.” — David Solomon [10:18]
• On workforce impact: AI’s adoption may bring faster, more pronounced shifts in roles, but technology-driven change is nothing new for the firm.
• Quote:
  “The pace is quicker...there’s a chance it might be a little bit more disruptive...But at the end of the day, technology changes jobs, changes the way people work. This has been going on for a long, long time.” — David Solomon [11:42]

Notable Quotes & Timestamps

• [00:47] “A de-escalation is a good thing, but there's obviously a lot of work to do…” — David Solomon
• [01:42] “Trade negotiations are complicated…a one year [truce] is also a realistic period of time…” — David Solomon
• [02:53] “There's more appetite for it than there was 12 months ago...” — David Solomon
• [04:18] “Goldman Sachs competes just fine, thank you very much...we have access to people, information, capital markets all over the world...” — David Solomon
• [05:30] “China is going to continue to be one of the most important economies in the world...” — David Solomon
• [07:24] “I’m not a big fan of that as a general practice...the markets should allow capital formation and competition...” — David Solomon
• [08:51] “CEOs are unleashed in believing they have a chance...We see a tremendous backlog of significant consolidating situations…” — David Solomon
• [10:18] “For a firm like Goldman Sachs...we can put these tools [AI] in their hands and that makes them more productive...” — David Solomon
• [11:42] “...the pace is quicker...might be a little bit more disruptive…but at the end of the day, technology changes jobs…This has been going on for a long, long time.” — David Solomon

Key Timestamps

• 00:47: De-escalation and state of US-China relations.
• 01:42: Pros/cons of a one-year trade truce; business sentiment.
• 02:53: Shift in US investor appetite for China/Hong Kong.
• 04:18: Competition and Goldman Sachs’ global positioning.
• 05:30: Long-term vision for Goldman Sachs in Greater China.
• 07:24: Government intervention in business and advice to clients.
• 08:51: M&A outlook and environment for large-scale deals.
• 10:18: Impact of AI on Goldman Sachs operations and workforce.
• 11:42: Broader reflections on technological change and adaptability in finance.

Memorable Moment

• Analogy for AI-driven transformation:
  Solomon compares the introduction of AI tools today to the impact of early spreadsheet software, emphasizing continuity and relentless progress in enterprise technology:
  “That's no different than 40 years ago when I was starting and somebody gave me a desktop computer and Lotus 1-2-3 software…It doesn't mean we have less smart people...productivity per person [is] much higher today than it was 25 years ago.” [10:54]

In Summary:
David Solomon’s appearance underscores cautious optimism on US-China relations, a revival in cross-border capital flows, confidence in Goldman Sachs’ enduring edge as a global financial powerhouse, skepticism regarding heavy-handed government intervention, and belief in embracing technology for smarter growth—not just efficiency. The episode is a snapshot of post-truce finance, with its blend of opportunity, competition, and transformation.