Horizon: AI, Tariffs, and the New Geometry of Power
Signals and Insights | 9 May 2026: Expectations for the US-China Summit — On the Radar, System Insights, and Recommended Reads
In this edition: signal of the week; system insights; what I am reading; and one last thing.
Signal of the Week
Washington and Beijing Could Move Toward AI Diplomacy Amid Strategic Decoupling
The United States and China are reportedly considering formal talks on artificial intelligence ahead of a planned Trump–Xi summit in Beijing next week, according to the Wall Street Journal.
The discussions would take place against a backdrop of export controls, semiconductor restrictions, rare-earth negotiations, and broader geopolitical competition.
The U.S. continues tightening controls on advanced AI chips, and China is accelerating efforts to build technological self-sufficiency.
Background Details:
Washington wants greater access to Chinese rare earth minerals and strategic industrial inputs.
Beijing wants relief from U.S. semiconductor export controls.
AI discussions could become institutionalised as part of broader US–China strategic management.
Taiwan remains a central flashpoint in negotiations.
Major powers such as the United States and China are increasingly treating semiconductors, energy grids, and rare earths as geopolitical assets rather than purely commercial sectors.
Chinese state-owned media recently highlighted how the two countries working together could help both nations overcome energy bottlenecks that threaten global AI development.