The China Connection - 22-May-26

Why It Matters

U.S. policy shifts and massive AI/quantum funding are reshaping the global tech hierarchy, while Lenovo’s earnings and EV pressures signal where investors should focus in the Asia‑Pacific market.

Key Takeaways

• Trump delays AI executive order to preserve US competitive edge.
• Lenovo reports 5x profit jump, AI revenue now 33% of sales.
• US invests $2 billion in quantum computing, targeting global tech leadership.
• NIO posts Q1 loss despite sales doubling, highlighting EV market pressure.
• APAC trade ministers push for easing restrictions, seeking less zero‑sum mindset.

Summary

The China Connection episode focused on the accelerating tech rivalry between the United States and China, highlighting policy moves, corporate earnings and regional trade talks. President Trump’s decision to hold off on an AI oversight order was framed as a safeguard for America’s lead, while the Commerce Department pledged a $2 billion quantum‑computing fund, with IBM receiving a $1 billion award.

Lenovo’s fiscal results stole the spotlight, posting a five‑fold profit surge and reporting that AI‑related products now account for a third of its revenue. Meanwhile, AMD’s CEO Lisa Su announced a $10 billion AI investment in Taiwan ahead of Computex, and NIO disclosed a first‑quarter loss despite doubling sales, underscoring volatility in the EV sector.

Key quotes included Trump’s remark, “I don’t want to do anything that’s going to get in the way of that lead,” and Su’s confidence that AI PCs will see double‑digit growth. The segment also featured Manishi Ray Chowdhury’s view that “picks‑and‑shovels” providers in China, Korea and Taiwan will benefit most from sustained AI capex.

The combined policy and corporate signals suggest a deepening U.S. push to secure emerging‑technology dominance, while Asian manufacturers capitalize on AI demand. Trade ministers’ call for reduced restrictions hints at a potential easing of geopolitical friction, which could boost export‑oriented Chinese firms and reshape investment flows across the region.

Original Description

The China Connection (10:00 – 11:00 SIN/HK), anchored by Emily Tan in Hong Kong, explores the key economic, technology, policy & business stories in the world’s second largest economy. Please note this livestream is only available in Europe and India.