U.S.–China & China's Diplomacy

The U.S.–China selective thaw continues: the Trump administration allowed the 2020 Hong Kong national emergency to expire and partially restored the city's special legal status, a move the HKSAR government welcomed as 'an important step in implementing the US-China trade consensus' [4][6][7]. U.S. Secretary of State Marco Rubio is expected to meet his Chinese counterpart Wang Yi in Manila this weekend, and a Trump-Xi summit is being discussed for September, marking the first direct high-level contact in months [8]. Restrictions under other U.S. laws remain, but this diplomatic opening suggests both sides are exploring de-escalation.

At the World AI Conference, Xi Jinping doubled down on Global South tech diplomacy, announcing 5,000 AI training slots for developing nations and AI cooperation centers with ASEAN, AU, and others, and deploying the 'Mazu' weather AI in 30 countries [9]. He also met Cambodian PM Hun Manet and Kazakh President Tokayev on the sidelines [5]. These moves, combined with the continued Tibet Circum-Himalaya forum [2], reinforce Beijing's strategy of building alternative partnerships independent of US ties.

Provincial economic outreach remains steady: Hubei met with Baowu Steel [10], Liaoning with Fudan University [13], Fujian and Xinjiang hosted overseas Chinese delegations [11], and the PBOC engaged with Libya's central bank [12]. Jiangsu also courted Gree Electric for AI-manufacturing cooperation [14]. These activities sustain China's economic hedging while Washington recalibrates its posture.