EU-China summit; US AI plan; Hangzhou water mess; "Manhattan Project" for fusion energy

Summary of today’s top items:

1. EU-China summit - The EU-China Summit should be starting imminently. The two sides have reportedly been able to agree on a joint statement on climate issues. In a nicely timed leak ahead of EU-China Summit, Bloomberg reported that the US and Eu may be getting to a deal for 15% tariffs on most imports. The PRC side thinks it would have more leverage with the EU if the US and Eu are also in a trade war.

2. PRC confirms US-China Stockholm meeting - He Lifeng will go to Sweden from July 27-30 for the talks. The exit-banning Commerce employee will not derail the talks, but Secretary Lutnick did say it was “outrageous behavior,” on the part of the Chinese. The Trump Administration released America’s AI Action Plan, and there is a lot related to competing with China, including suggestions that if implemented could significantly expand semiconductor-related export controls:

I wonder if He Lifeng and his team will remind the US side next week that they now have a…