Macron warns of ‘disintegration’ risk to world order in Xi meeting

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.

China is likely to target a GDP growth rate of 5% in 2026 as part of its strategy to combat deflation. This initiative comes amid ongoing economic challenges, including a struggling housing market and concerns over consumer confidence.

The European Commission has proposed a plan to provide €90 billion to support Ukraine over the next two years, potentially utilizing frozen Russian assets or borrowing from international markets. This initiative comes as Ukraine continues to face significant financial challenges due to the ongoing conflict with Russia.

Nvidia's servers have significantly accelerated AI models from China's Moonshoot AI and other companies, achieving a tenfold increase in processing speed. This advancement highlights Nvidia's pivotal role in enhancing AI capabilities, particularly for emerging tech firms in China.

The European Commission is contemplating a legal framework to compel industries to decrease their reliance on Chinese imports, as stated by Industry Commissioner Stéphane Séjourné. This initiative is part of a broader €3 billion strategy aimed at diversifying supply chains for critical raw materials, particularly rare earth metals, amid concerns over China's control over these resources.

Tesla is facing significant challenges in the Chinese market, as recent developments indicate a slowdown in demand, contrasting with previous expectations of growth. The company's stock has been negatively impacted as investors reassess the sustainability of its performance in this critical region.