Hello, that is Evelyn, writing to you from Beijing. Welcome to the most recent version of The China Connection — a succinct snapshot of what I am seeing and listening to from native companies.
Now that the Trump-Xi summit has helped hold tariffs in examine, Chinese language corporations and U.S. representatives alike are taking advantage of an prolonged truce to get some offers going. However is that sufficient to beat information safety and branding hurdles?
The massive story
For companies navigating U.S.-China tensions, “the worst is over,” Zou Ping, co-founder of AI Speech, informed me in Suzhou final week.
It was just some days after he’d returned from the U.S., one of many firm’s key development markets because it pushes gross sales of high-end microphones, audio system and digital note-taking tablets.
The corporate’s audio system and microphones use on-device AI capabilities to enhance sound high quality and are extensively utilized in firm assembly rooms and college school rooms, he stated.
The timing may hardly be higher.
Earlier this month, the U.S. and China agreed to pursue “constructive strategic stability,” signaling a broader effort to stabilize ties after greater than a 12 months of escalating tensions and tariff hikes that at one level pushed cumulative duties above 100%.
Now, the prolonged truce suggests these levies may stay at about half these ranges for longer.
For Zou, tariffs and market entry stay the most important issues. However for at the least the subsequent three to 5 years, he is hopeful that the U.S.-China relationship will not deteriorate additional.
The larger problem for successful U.S. prospects, he stated, is branding.
AI Speech is exploring acquisitions and native hiring as a part of its U.S. growth technique, he stated, hinting at conversations with New York electronics retailer B&H.
The theme echoed conversations I had with different executives: current journeys to the U.S. and Europe, discussions with main American retailers and renewed plans for abroad development.
“We’re speaking with Finest Purchase proper now,” Guo Renjie, CEO of humanoid robotic startup Zeroth, informed me in Suzhou final week.
He claimed the corporate acquired many orders on the Client Electronics Present in January, and plans to begin gross sales this fall within the U.S. and Europe, initially specializing in a toy-sized interactive robotic.
The Finest Purchase and Goal logos are displayed as folks wait in line to purchase Pokemon buying and selling playing cards throughout a launch outdoors of a Finest Purchase retailer in West Hollywood, California, on March 27, 2026.
Patrick T. Fallon | Afp | Getty Photos
Encouraging funding
Chinese language funding within the U.S. has plunged during the last decade.
Nonetheless, officers on either side are on the lookout for areas the place cooperation stays attainable.
The U.S. and China stated this month they might set up commerce and funding boards centered on non-sensitive sectors, U.S. Treasury Secretary Scott Bessent informed CNBC.
Quick-growing Chinese language shopper corporations are additionally exploring abroad acquisitions, such because the reported acquisition of sustainable vogue model Everlane by on-line retailer Shein.
On the state stage, engagement continues.
“I see plenty of collaboration occurring,” stated Andrea Chartock, assistant director on the Washington State Division of Commerce’s Workplace of Financial Improvement and Competitiveness. “Only a few days in the past, I spoke at an occasion for a Chinese language delegation and we made some displays each from Washington State and Seattle in addition to from the Chinese language aspect,” she stated.
Chartock spoke with me in Chongqing final week as a part of a delegation from Seattle. The 2 metropolitan areas have been “sister cities” for many years — a municipal-level settlement to facilitate commerce and worldwide change.
A number of days later in Suzhou, commerce ministers from the 21 member economies of the Asia-Pacific Financial Cooperation gathered for a convention.
Casey Mace, the senior U.S. APEC official attending, informed me how Washington is pushing American AI options throughout Asia whereas additionally encouraging extra funding within the U.S.
The Trump-Xi summit, he stated, has contributed to a extra “constructive” tone in current working-level discussions.
Chinese language corporations, in the meantime, try to get forward of knowledge safety issues and tariff-related dangers.
Zou emphasised that AI Speech merchandise don’t add consumer information, and that U.S. prospects who select to purchase any AI options can be served by its worldwide information facilities.
And Zeroth’s Guo stated he is exploring U.S. manufacturing choices, significantly in Texas, to scale back tariff publicity.
On the finish of the day, he stated, “China and the U.S. are nonetheless the biggest markets.”
Have to know
U.S. pushes its AI in China and Asia after Trump-Xi assembly
The U.S. is working arduous to make sure American know-how is utilized in Asia, a senior State Division official informed CNBC, as China races to construct cheaper alternate options. He was talking alongside the Asia-Pacific Financial Cooperation commerce ministers’ assembly that ran from Friday to Saturday.
Job coaching for robots: How China is getting machines prepared to affix the workforce
At robotic studying facilities in China, folks educate machines easy methods to work in quite a lot of eventualities. Humanoid robots are a part of Beijing’s greater industrial technique to dominate world markets and provide chains.
China’s second-largest chip foundry Hua Hong says it has ‘at all times been compliant’ with U.S. export controls
Daniel Wang, CFO of Shanghai Hua Hong Grace Semiconductor Manufacturing Company, stated the reminiscence chip growth might last more due to AI. Demand from AI, industrial and automotive purchasers is preserving its fabs working at full capability, with momentum anticipated to proceed into 2026.
Developing
Might 23-26: Pakistani Prime Minister to go to China
Might 26: Chinese language Overseas Minister attends high-level assembly of UN Safety Council
Might 27: Nio to formally launch flagship ES9 SUV
Might 28 – 30: Chinese language Overseas Minister visits Canada
Might 31: China releases official manufacturing PMI for Might
June 1: RatingDog China basic manufacturing PMI
