France's Macron pushes for more investment, trade rebalancing in China visit

USTR's Jamieson Greer indicated that US trade with China may need to be reduced, reflecting ongoing concerns about the economic relationship between the two nations. This statement comes amid a backdrop of shifting strategies, with the US expected to transition from containment to a focus on technological rivalry with China by 2026.

China's crackdown on borrowing by local governments has led state-run entities in affluent provinces to seek expensive credit from shadow banks, raising concerns about the risks associated with this opaque segment of the financial system. This move follows President Xi Jinping's efforts to manage debt levels and stabilize the economy amid growing financial pressures.

Brazil's soybean exports surged by 64% in November, driven by a shift in demand from China towards U.S. suppliers. This increase highlights Brazil's significant role in the global soybean market as it adapts to changing trade dynamics.

US senators are advancing a bipartisan bill aimed at blocking Nvidia from selling advanced AI chips to China, reflecting growing concerns over national security and the potential transfer of sensitive technology to Beijing.

The Commodity Futures Trading Commission (CFTC) announced that registered futures exchanges will be permitted to trade listed spot crypto products, marking a significant step in the regulatory landscape for digital assets under the Trump administration.

The U.S. may be misaligning its artificial intelligence (AI) strategy by focusing on large, complex models, while China is successfully leveraging smaller, cost-effective models like DeepSeek, which could yield better results in the competitive AI landscape. This shift in approach highlights a potential divergence in technological priorities between the two nations.

French President Emmanuel Macron's recent visit to China included a meeting with President Xi Jinping, resulting in the signing of a dozen cooperation agreements aimed at enhancing bilateral relations. Bruno Bezard, Managing Partner at Cathay Capital, emphasized the importance of such state visits for maintaining government communication and strengthening business ties.

Bank of America (BofA) is analyzing the recent slump in China's infrastructure investment, which has raised concerns about the country's economic stability and growth prospects. This downturn is attributed to various factors, including a struggling housing market and declining consumer confidence.