90% Wiped Out: China's Car Industry Is In Trouble; US-China: Trade & Taiwan; China's Economy; AI - China Update

[TexasTowelie]

00:00 Introduction
00:17 US-China: Trump Visit & Taiwan Trade
04:32 China Investors Embrace AI Rally
07:21 China’s Auto Sector Slump

- US President Donald Trump will visit China from March 31 to April 2 for a high-stakes summit with Xi Jinping, aiming to stabilize trade and geopolitical relations, with a focus on extending the tariff ceasefire and addressing AI chip export restrictions.
- US imports from Taiwan surpassed those from mainland China for the first time in decades, driven by surging demand for semiconductors and AI-related products, with Taiwan’s exports to the US more than doubling in 2025.
- China’s AI investment and market sentiment remain optimistic, with strong gains in stocks of AI-focused firms like Minimax and Jupai, while US investors show caution due to fears of technological disruption.
- China’s auto market contracted sharply in January 2026, with sales down 14.8% year-on-year, driven by reduced government subsidies and a new 5% purchase tax on new energy vehicles.
- The Chinese government issued new price compliance guidelines to curb destructive price competition, warning against dumping vehicles below cost and urging transparency in pricing.
- Industry experts predict a severe market consolidation, with 70–90% of automakers potentially failing as the sector adjusts to leaner incentives and increased regulatory oversight.