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 maintain tariffs in verify, Chinese language firms and U.S. representatives alike are taking advantage of an prolonged truce to get some offers going. However is that sufficient to beat knowledge 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, instructed me in Suzhou final week.
It was only a few days after he’d returned from the U.S., one of many firm’s key progress 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 broadly utilized in firm assembly rooms and college lecture 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 very least the following three to 5 years, he is hopeful that the U.S.-China relationship will not deteriorate additional.
The larger problem for successful U.S. clients, he stated, is branding.
AI Speech is exploring acquisitions and native hiring as a part of its U.S. enlargement technique, he stated, hinting at conversations with New York electronics retailer B&H.
The theme echoed conversations I had with different executives: latest journeys to the U.S. and Europe, discussions with main American retailers and renewed plans for abroad progress.
“We’re speaking with Finest Purchase proper now,” Guo Renjie, CEO of humanoid robotic startup Zeroth, instructed me in Suzhou final week.
He claimed the corporate obtained 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 exterior of a Finest Purchase retailer in West Hollywood, California, on March 27, 2026.
Patrick T. Fallon | Afp | Getty Pictures
Encouraging funding
Chinese language funding within the U.S. has plunged over the past decade.
Nonetheless, officers on each side are searching for areas the place cooperation stays potential.
The U.S. and China stated this month they’d set up commerce and funding boards centered on non-sensitive sectors, U.S. Treasury Secretary Scott Bessent instructed CNBC.
Quick-growing Chinese language client firms are additionally exploring abroad acquisitions, such because the reported acquisition of sustainable style model Everlane by on-line retailer Shein.
On the state degree, engagement continues.
“I see a number of collaboration taking place,” stated Andrea Chartock, assistant director on the Washington State Division of Commerce’s Workplace of Financial Growth and Competitiveness. “Only a few days in the past, I spoke at an occasion for a Chinese language delegation and we made some shows 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, instructed 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 latest working-level discussions.
Chinese language firms, in the meantime, try to get forward of knowledge safety issues and tariff-related dangers.
Zou emphasised that AI Speech merchandise don’t add person knowledge, and that U.S. clients who select to purchase any AI options can be served by means of its worldwide knowledge facilities.
And Zeroth’s Guo stated he is exploring U.S. manufacturing choices, notably 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.”
Must know
U.S. pushes its AI in China and Asia after Trump-Xi assembly
The U.S. is working exhausting to make sure American know-how is utilized in Asia, a senior State Division official instructed CNBC, as China races to construct cheaper 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 increase might last more due to AI. Demand from AI, industrial and automotive purchasers is preserving its fabs operating at full capability, with momentum anticipated to proceed into 2026.
Developing
Could 23-26: Pakistani Prime Minister to go to China
Could 26: Chinese language International Minister attends high-level assembly of UN Safety Council
Could 27: Nio to formally launch flagship ES9 SUV
Could 28 – 30: Chinese language International Minister visits Canada
Could 31: China releases official manufacturing PMI for Could
June 1: RatingDog China common manufacturing PMI
