Trade truce

China protested U.S. proposed sanctions on Chinese AI firms, vowing to counter measures targeting alleged IP theft through distillation. The U.S. had agreed to cap tariffs at 20% under a trade truce, but analysts suggest the new duties will have limited impact on China.

Trump has pledged to 'open up' China, with Washington and Beijing expected to extend their trade truce at an upcoming summit. However, analysts have low expectations for a significant breakthrough, anticipating only modest improvements in the strained relationship between the two countries.