{Economic Intelligence Wire, May 25} Chinese President Xi Jinping and his wife Peng Liyuan attended a state banquet hosted by U.S. President Donald Trump and his wife Melania at the White House, where Trump invited several tech industry leaders to highlight the focus on AI issues during the meeting. However, apart from President Xi and his entourage of officials, no Chinese tech company executives joined the delegation as rumored. Experts speculate that China may intend to downplay its emphasis on AI development and shift the focus of the visit back to trade and diplomacy between the two nations. It is expected that the Xi-Trump meeting may not result in any major AI agreements, but it is not believed that China intends to slow down its AI development. Upstream and midstream enterprises in the AI supply chain remain worth watching.
*Raymond Wong: Reducing AI focus does not mean underestimating; expects Moonshot AI's IPO to proceed as scheduled*
Both Chinese and U.S. leaders mentioned AI development during their speeches. Xi Jinping stated that while there is competition in artificial intelligence, there can also be cooperation. Trump said that China and the U.S. should maintain dialogue and strengthen cooperation on AI. Raymond Wong, First Vice President of Yin Yuan World Innovation Family Office (Hong Kong), told the Economic Intelligence Wire that the overall outlook for China's AI development remains positive, especially in upstream AI infrastructure such as optical communications, PCBs, and chips, which still have room for expansion. In contrast, midstream and downstream sectors such as large models still face intense competition. The development of large models in the U.S. is undoubtedly ahead of Chinese enterprises, making it difficult for Chinese AI large models to break through. Regarding the absence of any Chinese corporate leaders in the delegation, Wong believes China deliberately shifted the focus to overall trade rather than AI alone, hence Hong Kong stocks have reflected this disappointment to some extent in the past two days. However, he emphasized that this does not mean China intends to slow down its AI development pace, and the aforementioned progress will continue.
Recent rumors about regulatory investigations into certain large model companies were acknowledged by Wong, who admitted that since AI large models are continuously innovating, regulation will also evolve with time, which constitutes a policy risk for the industry. Therefore, compared to midstream and downstream AI sectors, he is more optimistic about upstream hardware supply sectors, as they currently face relatively lower policy risks. He pointed out that the regulatory rumors were mainly triggered by issues arising from Anthropic's report, prompting follow-up actions, but this does not affect the mainland authorities' overall view on AI development. Therefore, Wong believes Moonshot AI will proceed with its IPO as scheduled, although there might be slight adjustments in the offering price or valuation. (lc)
*Raymond Wong: Reducing AI focus does not mean underestimating; expects Moonshot AI's IPO to proceed as scheduled*
Both Chinese and U.S. leaders mentioned AI development during their speeches. Xi Jinping stated that while there is competition in artificial intelligence, there can also be cooperation. Trump said that China and the U.S. should maintain dialogue and strengthen cooperation on AI. Raymond Wong, First Vice President of Yin Yuan World Innovation Family Office (Hong Kong), told the Economic Intelligence Wire that the overall outlook for China's AI development remains positive, especially in upstream AI infrastructure such as optical communications, PCBs, and chips, which still have room for expansion. In contrast, midstream and downstream sectors such as large models still face intense competition. The development of large models in the U.S. is undoubtedly ahead of Chinese enterprises, making it difficult for Chinese AI large models to break through. Regarding the absence of any Chinese corporate leaders in the delegation, Wong believes China deliberately shifted the focus to overall trade rather than AI alone, hence Hong Kong stocks have reflected this disappointment to some extent in the past two days. However, he emphasized that this does not mean China intends to slow down its AI development pace, and the aforementioned progress will continue.
Recent rumors about regulatory investigations into certain large model companies were acknowledged by Wong, who admitted that since AI large models are continuously innovating, regulation will also evolve with time, which constitutes a policy risk for the industry. Therefore, compared to midstream and downstream AI sectors, he is more optimistic about upstream hardware supply sectors, as they currently face relatively lower policy risks. He pointed out that the regulatory rumors were mainly triggered by issues arising from Anthropic's report, prompting follow-up actions, but this does not affect the mainland authorities' overall view on AI development. Therefore, Wong believes Moonshot AI will proceed with its IPO as scheduled, although there might be slight adjustments in the offering price or valuation. (lc)
