Trump-Xi Jinping summit revives hopes for China's tech sector

Trump-Xi Jinping summit revives hopes for China's tech sector

The meeting between Donald Trump and Xi Jinping became more than just a diplomatic event for markets; it was a potential turning point for the entire technological landscape between the US and China. Amid reports of possible approval for Nvidia H200 sales to Chinese companies, investors began to reconsider their expectations for China's AI sector, which has been under pressure from export restrictions and geopolitical risks in recent years.
Why is the market watching the US-China meeting so closely?

For global investors, the Trump-Xi summit is about more than just tariffs. In 2026, the technological standoff between Washington and Beijing has become the central axis of the global economy.
Semiconductors, computing power, cloud infrastructure, and artificial intelligence have become strategic assets at the energy and defense levels.

This is why even a limited easing of export restrictions is perceived by the market as a potential turning point.
Goldman Sachs expects the two sides to focus on trade controls, export restrictions, and rare earth elements. While the bank doesn't predict a "grand deal," it does allow for a tactical improvement in sentiment around Chinese assets.

This is already enough for the market.

After years of pressure, investors have begun looking for signs of stabilization in relations between the world's two largest economies.
Nvidia is once again at the center of the global AI race.

The biggest controversy was caused by Reuters reports that the United States had allegedly approved the supply of Nvidia H200 chips to a number of large Chinese companies, including Alibaba.
If confirmed, this would be one of the most significant signals for China's AI sector in recent years.
Today, the key shortage in the global AI industry is not ideas or even capital, but computing power.

Access to advanced AI chips is key to companies' ability to train large models, develop cloud services, and compete in the AI ​​infrastructure race.
“Compute is the new oil.” — Jensen Huang
For Chinese companies, restrictions on Nvidia have effectively become a limitation on the speed of development of the entire AI ecosystem.
Therefore, the market perceives any signs of easing the export regime as a potential catalyst for a revaluation of Chinese tech stocks.

Trump-Xi Jinping summit revives hopes for China's tech sector

Why Investors Are Looking Back at Alibaba and Tencent

Interest in Chinese tech giants has begun to recover following the latest financial results from Alibaba and Tencent.
Investors have seen signs of growing demand for cloud infrastructure and AI services within China.
However, until now there has been a fundamental limitation: Chinese companies have been significantly behind American hyperscalers in access to advanced GPUs.
That's why the market has long questioned whether Chinese AI companies could monetize their investments as effectively as Microsoft, Amazon, or Google.

Now the situation is beginning to change gradually.
Barclays analysts believe that Chinese companies are more likely to be lagging behind for several quarters than to be structurally behind in the race.

This is an important change in perception.
The market is gradually shifting from the “China is cut off from AI” logic to the “China is temporarily limited, but continues to scale infrastructure” scenario.


Why the Chinese market still lags the US

Despite local optimism, Chinese indices still look significantly weaker than the US AI rally.
Hang Seng Tech remains under pressure, and many internet companies are not showing the explosive AI growth dynamics that investors saw in the US.

The reason is the market structure.
The main beneficiaries of AI in China are currently concentrated not so much in the internet sector, but in hardware, semiconductor manufacturing, industrial automation, and data infrastructure.
This is why mainland A-shares look stronger than many Hong Kong tech companies.

Investors effectively divide the Chinese tech market into two parts.
The first is the established internet e-commerce sector. The second is the emerging AI-industrial ecosystem, related to chips, servers, computing infrastructure, and automation.
It is the second segment that receives the most attention from capital today.
Why the summit is important for global markets

The Trump-Xi meeting has implications far beyond China.
The AI ​​industry has become too global to exist in complete technological isolation.

American companies need large markets. Chinese companies need access to computing infrastructure. Investors need reduced geopolitical uncertainty.
Therefore, even a limited trade truce could significantly change the mood in global markets.
Especially in a situation where capital is once again actively flowing into AI assets.
The Trump-Xi Jinping summit doesn't yet look like the beginning of a major geopolitical reset. However, the market increasingly views it as a signal of gradual stabilization in technology relations between the US and China.
Reports of Nvidia's possible approval of the H200 for Chinese companies have only reinforced this effect.
For investors, this means one thing: China's AI sector is starting to return to the global investment agenda.
By Miles Harrington 
May 14, 2026

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