Beijing shifts tech strategy ahead of potential Xi visit to US

Beijing has adjusted its stance in the ongoing technology conflict with the United States, ahead of a potential visit by Chinese President Xi Jinping. This development comes amidst a fragile trade truce and ongoing diplomatic engagements between the two nations. Recent actions by China, including tighter controls over advanced technology exports and regulatory measures, suggest a strategic repositioning in the tech dispute with the U.S. Markets are interpreting these moves as potentially supportive of improving relations, which could influence the likelihood of Xi’s visit. The prediction market for Xi Jinping’s visit to the U.S. before the end of 2026 currently reflects a 93.5% probability of a YES outcome, showing an increase from 92% in the past week. This shift suggests that market participants see Beijing’s recent actions as consistent with scenarios where diplomatic relations may advance, potentially facilitating Xi’s planned visit. The context of high-level interactions, such as the recent meeting between Trump and Xi, further underscores the complex dynamics at play. China’s evolving approach indicates an active role in shaping its competitive position within the tech confli...