SHANGHAI/SINGAPORE – Investors expect U.S. President Donald Trump and his Chinese counterpart to keep trade tensions on the backburner when they meet in Beijing and say they are focused on the booming artificial intelligence sector and whether the U.S. will relax chip export restrictions.

This is in stark contrast with years of Chinese asset prices swinging wildly on trade and tariff headlines and is reflected most clearly in the yuan, which has been steadily rising for a year to reach a three-year peak. While thorny subjects such as the U.S.-Israeli war on Iran, Taiwan, rare earths and nuclear weapons may be ​discussed and major disagreements could dent market confidence, investors are presently betting on China’s technology drive.

China’s benchmark Shanghai Composite is trading at an 11-year high and export growth is powering ‌ahead on ‌a wave of AI-driven orders. Even a widening trade surplus does not make fund managers nervous about a fresh round of U.S. tariffs and they ​have swung their portfolios behind China’s AI self-sufficiency drive.

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