Key takeaways

• The Trump-Xi summit, which was held in Beijing on 14-15 May, concluded as an event with a mix of symbolism and selective progress. It appeared to reinforce market expectations that both countries remain focused on preventing renewed escalation in trade and technology competition, which should help limit downside sentiment. President Xi has been invited to visit the US on 24 September 2026, along with two other key international summits (APEC in November and G20 in December), setting the stage for more positive engagement between the US and China throughout the year.
• For the Chinese economy, the summit offers tactical relief but no structural shift. The continuation of the trade truce prevents renewed escalation and preserves the current effective tariff rate on Chinese goods at around 29%, based on our estimation in late February, 0.1% lower than pre-ruling of the IEEPA.
• While the US granted approval for Nvidia’s H200 chips to China, a symbolic positive for China’s AI sector, reports indicated that China has yet to finalise any order. Meanwhile, US export controls on cutting-edge chips remain firmly in place. US concerns over critical minerals supply were addressed at the summit, but no detailed resolution has been announced at this point. For equity investors, we think the appropriate posture is constructive but selective. Sector-wise, the technology and AI complex remains the most asymmetric opportunity, and we want to continue highlighting the opportunities that come alongside China’s industrial resilience.

Please refer to the full report for details about the event and our investment view.

“Overweight” implies a positive tilt towards the asset class, within the context of a well-diversified, typically multi-asset portfolio.

“Underweight” implies a negative tilt towards the asset class, within the context of a well-diversified, typically multi-asset portfolio.

“Neutral” implies neither a particularly negative nor a positive tilt towards the asset class, within the context of a well-diversified, typically multi-asset portfolio.

https://www.hsbc.com.my/wealth/insights/market-outlook/special-coverage/trump-xi-summit-managed-rivalry-helps-stabilise-expectations/