US-China Relations

Analysis: Households and businesses to foot the bill for the power struggle

China’s massive export surplus is partly the result of weak domestic demand, as Xi Jinping prioritizes industrial dominance over increased consumption. This is according to Viktor Munkhammar of *Dagens Industri* (DI), writing ahead of this week’s summit between Presidents Trump and Xi.

At the same time, a mounting mountain of debt limits the scope for economic stimulus. "The most likely scenario is that things will continue on the same trajectory as in recent years: the rest of the world provides the demand, overcapacity persists, and debt continues to accumulate," Munkhammar writes.

However, while China relies on demand from the rest of the world, that demand is becoming increasingly unreliable, according to Sebastian Contin Trillo-Figueroa of *Nikkei Asia*. The US, the EU, and China are attempting to enforce their own conflicting rules for global companies, which are forced to adapt their supply chains, technology, and data handling to meet these divergent requirements. "The companies trying to satisfy everyone at once don't have a seat at the table—they just get to foot the bill," he writes. 

Bessent: Successful talks with China on AI

US Treasury Secretary Scott Bessent says the US has held "very successful" talks with China regarding AI and trade, Bloomberg reports. He held a lengthy discussion with Chinese Vice Premier He Lifeng ahead of President Xi Jinping’s visit to Washington this week.

Among other topics, they discussed the risks associated with artificial intelligence. The US has proposed that the two nations share information with each other regarding safety incidents.

"Greater transparency between the world’s leading and second-leading AI powers is crucial," says Bessent.