Trump China visit; China’s Next Generation Industrial Policy; Standardizing and developing AI agents; No more deflation?; Ding Xuexiang visits Huawei

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There will be no newsletter Tuesday, May 12 as I will be attending the first day of the US Chamber of Commerce’s China Business Conference. Today’s top items:1. Trump China visit - The PRC confirmed that President Trump will meet with Xi this week. He will arrive May 13 and depart after lunch Friday. According to the PRC, “Chinese President Xi Jinping and U.S. President Donald Trump will have an in-depth exchange of views on major issues concerning China-U.S. relations and world peace and development.” Vice Premier He Lifeng will lead a delegation to South Korea on May 12-13 to hold economic and trade consultations with Treasury Secretary Bessent. Such a meeting on the eve of the Trump-Xi summit is a sign that they are still working on deliverables for the visit. Expectations should be low for this visit, but you never know what Trump may decide to announce. I am of the view that the “China has the upper hand” takes about the upcoming Trump visit to Beijing are overblown, or at least that is not at all how the US side views the situation, but we shall know soon enough when we learn what significant, credible outcomes there are, if any. The US continues to announce Iran-related sanctions affecting PRC firms, with the Friday entity listing of three satellite firms and today’s announcement by the Department of the Treasury’s Office of Foreign Assets Control (OFAC) that it is “designating 12 individuals and entities for their roles enabling the Islamic Revolutionary Guard Corps’ (IRGC) sale and shipment of Iranian oil to the People’s Republic of China.” A small group of CEOs wi…