As Trump and Xi meet, investors play both sides of AI divide
As China and the US compete to establish distinct AI supply chains, investors are leveraging both markets, with US banks raising capital for Chinese AI startups and Chinese funds flowing into US technology. This financial linkage, which has surged to nearly $750 billion in US equity held by Hong Kong residents and mainland Chinese, adds a complex layer to the geopolitical rivalry, akin to the Cold War space race.
With key figures like Donald Trump and Xi Jinping set to meet in Washington, investors hope the summit will ease tensions and foster stability in AI development. Despite political volatility, US and Chinese businesses continue to engage, maintaining mutual investments and interests in each other's markets. US Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng have discussed establishing a US-China AI dialogue to maintain ties amid escalating tensions.
Wall Street banks have been active in China's AI listing boom, advising on over a dozen AI and semiconductor IPOs, contributing to the flow of capital across both sides of the 'Silicon Curtain.'
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