Trump China deal?; DeepSeek raising funds, wants more Nvidia chips?; Plan to stabilize foreign investment; Miao Hua

I am a bit sick and so today’s newsletter is a bit thin. Thanks for your patience.

Summary of today’s top items:

1. New York Times on talk of a Trump-China deal - The newspaper cites “more than half a dozen current and former advisers and others familiar with Mr. Trump’s thinking” in reporting that Trump is considering a broader US-China deal with Xi. The paper reports that Elon Musk “had expressed confidence that deals could be made, and that it was important for the United States to find ways to work with China to avoid heightened tensions”.

2. DeepSeek raising funds, wants more Nvidia chips? - The Information reports that DeepSeek is now considering raising outside financing, possibly from state-backed investment firms. One reason for the shift to considering outside financing is the need for more AI chips. The outlet also reports that “Late last year, in a team meeting, Liang talked to employees about the idea of using a data center in Malaysia to gain access to more Nvidia chips superior to H20, according to a former employee who attended the meeting”. This news is probably bullish for Nvidia, and throws cold water on some of the “disinfo bombardment” around DeepSeek. If Trump does strike a grand bargain with Xi then maybe DeepSeek will have access to as many Nvidia chips as it can buy.

3. 2025 Action Plan for Stabilizing Foreign Investment - In another sign policymakers are concerned about the decline in foreign investment, the Ministry of Commerce and the National Development and Reform Commission issued an action plan to stabilize foreign investment. I have posted a translation of the plan here. It announces more "pilots", promises to "Implement Comprehensive Removal of Foreign Investment Access Restrictions in Manufacturing" (perhaps this time it will be implemented?), and details more focus on building the "Invest in China" brand and promotion activities around it.

4. Clean energy sectors contributed 10% of GDP in 2024 - So says a new report from Carbon Brief.

5. Wang Yi’s speech at the UN: Practicing Multilateralism, Reforming and Improving Global Governance - Wang sounds confident and energized as Trump appears to be ceding the field to the PRC and Russia.

6. The downfall of Miao Hua - John Czin, now at Brookings and until last year at the CIA, has an informative article about the investigation of former director of the Political Work Department and Central Military Commission (CMC) member Miao Hua.

Earlier today I published Xi Jinping and China's Tech Companies, The Long-Run Implications of the Chip Ban, and a Pessimistic Outlook for Taiwan, this week’s episode of Sharp China with special guest host Ben Thompson of the excellent Stratechery. From the show notes:

On today’s special crossover Sharp Tech/Sharp China episode, Ben Thompson and Bill Bishop discuss the private enterprise symposium and Xi Jinping's rapprochement with China's tech companies, and the connection between xAI and DeepSeek. Then, an extended debate on the chip ban, including its potential long-term consequences, and whether or not a course correction is possible. Finally, why the situation surrounding Taiwan is worrisome, and whether Trump is looking to make a deal.

You can listen to it here, or in the app:

Thanks for reading, and listening.