Hello, I’m Evelyn. I am writing to you from Beijing. Welcome to the latest edition of The China Connection. This is a concise summary of what I have seen and heard from local companies.
Now that the Trump-Xi summit helped curb tariffs, Chinese companies and U.S. representatives alike are trying to take full advantage of the extended ceasefire to advance deals. But is that enough to overcome data security and brand hurdles?
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“The worst is over” for companies navigating U.S.-China tensions, Zou Ping, co-founder of AI Speech, told me in Suzhou last week.
That was just days after he returned from the United States, one of the company’s key growth markets where it drives sales of high-end microphones, speakers and digital note tablets.
The company’s speakers and microphones use on-device AI features to improve sound quality and are widely used in corporate conference rooms and university classrooms, he said.
The timing couldn’t be better.
Earlier this month, the United States and China agreed to pursue “constructive strategic stability,” signaling a broader effort to stabilize relations after more than a year of heightened tensions and tariff hikes that at one point saw cumulative tariffs exceed 100%.
The ceasefire extension now suggests that these levies may remain at about half that level for an extended period of time.
Tariffs and market access remain Zou’s biggest concerns. However, I am hopeful that U.S.-China relations will not deteriorate any further for at least the next three to five years.
The bigger challenge to winning U.S. customers is branding, he said.
AI Speech is considering acquisitions and local hiring as part of its U.S. expansion strategy, he said, hinting at conversations with electronics retailer B&H in New York.
This theme reflected conversations I had with other executives, including recent travel to the U.S. and Europe, discussions with major U.S. retailers, and new plans for international growth.
“We are talking with best buy Right now,” Guo Renjie, CEO of humanoid robot startup Zeros, told me in Suzhou last week.
He claimed the company received many orders at the Consumer Electronics Show in January and plans to start selling it in the U.S. and Europe this fall, initially focusing on toy-sized interactive robots.
Best Buy and Target logos are displayed as people wait in line to purchase Pokemon trading cards during a sale outside a Best Buy store on March 27, 2026 in West Hollywood, California.
Patrick T. Fallon | AFP | Getty Images
Promotion of investment
Chinese investment in the United States has fallen sharply over the past decade.
Still, officials from both sides are exploring possible areas for cooperation.
The United States and China announced this month that they will establish a trade and investment committee focused on non-sensitive sectors, Treasury Secretary Scott Bessent told CNBC.
Fast-growing Chinese consumer companies are also considering overseas acquisitions, such as online retailer Shein’s reported acquisition of sustainable fashion brand Everlane.
Engagement continues at the state level.
“We’re seeing a lot of collaboration happening,” said Andrea Chartock, deputy director of the Washington State Department of Commerce’s Office of Economic Development and Competitiveness. “Just a few days ago, I spoke at a Chinese delegation event and gave several presentations from Washington state and Seattle, as well as from the Chinese side,” she said.
Mr. Chartock spoke with me in Chongqing last week as part of a delegation from Seattle. The two metropolitan areas have had a “sister city” relationship for decades. This is a municipal-level agreement to promote trade and international exchange.
A few days later, in Suzhou, trade ministers from the 21 member countries of the Asia-Pacific Economic Cooperation met for a meeting.
Casey Mace, a senior U.S. APEC official in attendance, spoke about how Washington is promoting U.S. AI solutions across Asia while encouraging greater investment in the United States.
He said the Trump-Xi summit contributed to a more “positive” atmosphere in recent working-level talks.
Meanwhile, Chinese companies are trying to get ahead of data security concerns and tariff-related risks.
Zou emphasized that the AI Speech product does not upload user data and that U.S. customers who choose to purchase AI capabilities will be served through international data centers.
Zeros’ Guo also said the company is considering U.S. manufacturing options, particularly in Texas, to reduce the risk of tariffs.
After all, he said, “China and the United States are still our biggest markets.”
need to know
US promotes AI in China and Asia after President Trump and Xi meet
The United States is working hard to ensure American technology is used in Asia as China rushes to develop cheaper alternatives, a senior State Department official told CNBC. He was speaking on the sidelines of the Asia-Pacific Economic Cooperation Trade Ministers’ Meeting, which was held from Friday to Saturday.
Job training for robots: How China is enabling machines to enter the workforce
Robot learning centers in China are teaching machines how to operate in different scenarios. Humanoid robots are part of Beijing’s larger industrial strategy to dominate global markets and supply chains.
Huahong, China’s second-largest semiconductor foundry, says it has “always complied” with U.S. export regulations
Daniel Wang, chief financial officer (CFO) of Shanghai Huahong Grace Semiconductor Manufacturing Corporation, said the memory chip boom could last longer thanks to AI. Demand from AI, industrial, and automotive customers has factories running at full capacity, and the momentum is expected to continue through 2026.
very soon
May 23-26: Pakistan Prime Minister visits China
May 26: Chinese Foreign Minister attends high-level meeting of the United Nations Security Council
May 27th: Nio officially launches flagship SUV ES9
May 28th-30th: Chinese Foreign Minister visits Canada
May 31: China releases official manufacturing PMI for May
June 1: RatingDog China General Manufacturing PMI
