Investors say they want Trump and Xi to stay out of AI’s way

The yuan has reached a three-year high, reflecting investors’ belief that trade tensions between the U.S. and China will remain subdued.
China’s stock market, specifically the Shanghai Composite, is trading at an 11-year high driven by exports facilitated by AI-driven orders.
Market focus has shifted from trade and tariff issues to China’s advancements in the booming AI sector and potential policy changes regarding U.S. chip export restrictions.
Investors expect that U.S.-China relations will be stable and that the upcoming meeting between President Trump and President Xi Jinping will emphasize stability and technological cooperation over trade disputes.
Despite broader global issues such as the U.S.-Israeli war on Iran, market confidence remains strong due to China’s technological progress and self-sufficiency drive.
The diminishing brinkmanship in U.S.-China relations during the meeting is seen as a tactical catalyst for currency strength and an indicator of stabilizing trade relations.
Key investors in technology, such as China’s state-run firms, are primarily interested in developments around AI and potential changes to U.S. export policies for advanced chips.

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