Weekend Buzz: 16-17 May 2026

Top News

China-US Summit Ends With Warm Words

Chinese Foreign Minister Wang Yi said the now-ended summit between Chinese President Xi Jinping and US President Donald Trump was "fruitful." Xi told Trump that shipping channels in the Persian Gulf must be reopened and the existing ceasefire should continue to allow for peace talks to end the conflict, according to the foreign ministry. "Finding an early path to resolution would benefit both the US and Iran, as well as countries in the region and the world as a whole," the ministry said.

Trump repeated longstanding US policy recognizing Taiwan as part of China.

China confirmed that Xi Jinping will pay a state visit to the US this autumn as Washington seeks to reciprocate the warm welcome accorded Trump this week.

Tensions in Middle East Flare Again

Israeli attacks on Lebanon killed at least six people and wounded 37 as the US said Israel and Lebanon had agreed to extend what has been a porous ceasefire by 45 days. In the Gulf region, a ship anchored off the United Arab Emirates was seized and taken toward Iran, and a cargo ship near Oman sank after being attacked, authorities said. The incidents occurred as a senior Iranian official repeated his country's claim of control over Strait of Hormuz, a main oil conduit from the Persian Gulf. However, Tehran said Chinese-flagged vessels were among some 30 ships it allowed to transit the strait in recent days.

US Threatens Criminal Indictment Against Former Cuban President

The US said it may seek a criminal indictment of former Cuban president Raul Castro in the coming days, after CIA officials made an unusual visit to the island. Trump earlier this year said Cuba is next after the US overthrow of the government in Venezuela. The potential indictment, which apparently relates to the downing of two small US planes 30 years ago, came as CIA director John Ratcliffe met Cuban officials on a surprise visit to the island, which is suffering economically from a US blockade on its oil imports

US Abruptly Cancels Troop Deployment in Poland

The US Pentagon abruptly announced it will cancel the deployment of 4,000 troops to Poland, catching NATO allies and even some of the US military by surprise. No explanation was given, but analysts said it may be linked to President Donald Trump's continuing snit over the refusal of European allies to help with the Iran war. The decision was even more surprising because troops and equipment had already started to arrive in Poland. Earlier this month, Trump said the US will withdraw 5,000 troops now stationed in Germany after Chancellor Friedrich Merz made disparaging remarks about the war. Trump has been insisting that Europe will have to learn to defend itself. US troops in Europe are part of the defense alliance's deterrence buffer against Russia.

Trump Says Russian Attack on Kiev Civilians May Set Back Peace Efforts

US President Donald Trump suggested a Russian missile strike on residential Kiev that killed 24 people, including three children, could hinder peace efforts to end the four-year war in Ukraine.

Speaking to reporters aboard Air Force One on his way back from China, Trump said he discussed the "⁠senseless bloodbath" with Chinese President Xi Jinping and both leaders had agreed that they wanted to see an end to the fighting. US mediation attempts have stalled as Washington turned its attention to the Iran war. The Kremlin said Russian President Vladimir Putin may travel to China next week to meet Xi, but no details were announced and Beijing hasn't confirmed the visit.

Top Business

Leapmotor Q1 Loss Widens Amid Pricing Pressure

Hong Kong-listed Leapmotor reported a net loss of 390 million yuan (US$53.8 million) for the first quarter of 2026, widening from a 130 million yuan loss a year earlier. Revenue grew 8 percent to 10.8 billion yuan, and gross margin dropped to 9.4 percent from 14.9 percent. The Hangzhou-based company attributed the results to increased expenses and a lower average selling prices resulting from a shift in its product mix. Despite the loss, total sales climbed 25.8 percent to 110,200 units. Overseas performance was particularly strong, with 40,900 units sold abroad, representing 37 percent of total deliveries. This setback follows Leapmotor's first annual profit in 2025, during which the automaker recorded a net profit of 540 million yuan. The company announced it will use Stellantis

Hua Hong Posts Surge in First-Quarter Profit

Shanghai-based Hua Hong Semiconductor, China's second largest chip foundry, reported first-quarter net profit surged 485 percent to US$21 million from a year earlier on a 22 percent revenue increase to US$662 million, reflecting global AI chip demand. The company predicted earnings of up to US$700 million in the current quarter. "The company's results were supported by sustained efforts in cost reduction and efficiency enhancement, and by a positive demand signal that started at the beginning of the quarter and became stronger over the course of the quarter," said company Chairman Bai Peng, according to an Yicai report. He said the global semiconductor industry is undergoing rapid transformation as AI and related applications become increasingly central to market dynamics. Revenue from China rose 19 percent, and income from the North American market jumped 52 percent.

CCTV Secures FIFA World Cup Rights in Major Pricing Win

China Media Group, parent of state-owned China Central Television, and FIFA finalized a broadcasting agreement for the next two World Cup cycles after a week of negotiations. The deal covers the 2026 and 2030 men's World Cups, and the 2027 and 2031 women's World Cups.

Sources said rights to broadcast the 2026 World Cup, hosted by Canada, Mexico and the US, cost US$60 million – a significant drop from earlier reports of an asking price between US$250 million and US$300 million.

Economy & Markets

Chinese Airlines Raise Fuel Surcharge on Domestic Flights

Air China, China Southern Airlines and Xiamen Airlines announced increases in fuel surcharges on domestic route tickets, taking effect today. The surcharges will rise to 90 yuan (US$13) on routes of 800 kilometers or less and to 170 yuan for flights longer than that. The airlines had earlier indicated that higher surcharges would apply only to foreign flights. The carriers, along with airlines around the world, are grappling with more than a 50 percent surge in jet fuel prices since the war in Iran blocked oil shipments from the Gulf states.

China Urban Wages Rise Faster

China's average urban wages grew at a faster pace in 2025 across both private and non-private sectors, the National Bureau of Statistics reported on Friday. The average annual salary at state-owned firms reached 129,441 yuan (US$19,000), up 4.3 percent from 2024. Workers in urban private companies earned an average 71,590 yuan, up 3 percent. The wages reflect accelerated growth in both sectors last year.

China Posts Q1 Current-Account Surplus

China recorded a first-quarter current-account surplus of 1.28 trillion yuan (US$184 billion), driven primarily by robust goods exports, according to the State Administration of Foreign Exchange. The nation posted a goods trade surplus of 1.72 trillion yuan. Foreign direct investment remained in net inflow territory, highlighting steady cross-border capital flows despite shifting global investment conditions.

Deep Dive

CPUs and GPUs: The Shifting Focus of Technology in the AI Era

The long-standing obsession with graphics-processing units, especially Nvidia GPUs, is facing a major turning point in the AI era. The idea that GPUs entirely define artificial intelligence has dominated the industry for years, but that narrative is shifting rapidly in China and across the globe.

Crackdown Begins on Disposal of Spent Electric Car Batteries

China is conducting a sweeping crackdown on the illegal recycling and disposal of power batteries, targeting those used in electric vehicles and mopeds.

Pharma Fair Sheds Light on Chinese Drugmakers' Changing Strategies

More than 3,000 pharmaceutical and healthcare companies gathered in Shanghai this week for the 92nd PHARMCHINA, one of China's largest industry sourcing fairs. Held at the National Exhibition and Convention Center in suburban Qingpu District.

Corporate

Stellantis, Dongfeng Ink US$1.2 Billion Deal to Build Cars in China

French-Italian carmaker Stellantis signed a US$1.2 billion deal with longtime Chinese partner Dongfeng to produce Peugeot and Jeep brand vehicles in China for the domestic and foreign markets. The ⁠vehicles will be manufactured at Dongfeng's factory in Wuhan, where the company is based, using Dongfeng technology. Stellantis will contribute about US$151.4 million to the project.

Huawei, Apple Reduce Smartphone Prices

Huawei slashed prices on its foldable MateX7 foldable phone by 1,000 yuan (US$147) and on its Mate X6 by 3,000 yuan as the industry faces increasing domestic competition and slowing sales from earlier price rises induced by higher memory-chip costs. The price of Apple's iPhone 17 also dropped, with the Pro models down under 7,000 yuan for the first time.

China Gold International Posts Profit Surge

Hong Kong-listed China Gold International Resources, a Canadian-based company that operates gold and base metal mines in two Chinese provinces, said first-quarter profit surged 174 percent to US$236.4 million on a 66 percent increase in revenue to US$453.2 million. Gold production decreased by 22 percent to 34,820 ounces from a year earlier and copper output rose slightly to 17,030 tons. The company, which operates mines in Inner Mongolia and Xizang autonomous regions, booked a foreign-exchange loss of US$2.5 million on a stronger Chinese yuan against the dollar.

Kioxia Targets US Share Listing

Japanese memory chip maker Kioxia Holdings plans to list in the US following record earnings driven by the AI boom. The company forecast a June-quarter operating profit of 1.3 trillion yen (US$8.2 billion) after posting record 596.8 billion yen in earnings in the March quarter. Kioxia's shares have surged about 300 percent this year. As rivals focus on high-bandwidth memory for advanced processors, Kioxia has capitalized on rising prices and shortages in flash memory chips.