China's Xi is making a big bet on tech to pull the Chinese economy through, says Dennis Unkovic

Summary

Dennis Unkovic argues Xi Jinping is making a deliberate policy bet on technology and higher-end manufacturing to pull China's economy forward, while real estate and debt remain major structural drags. He cites DeepSeek as an example of China's cheap, open-source AI competitiveness, and the host adds that Chinese semiconductor exports are a major contributor to export growth. The conversation also covers oil-stockpile disinflation effects and upcoming U.S.-China tariff talks.

• China is described as a two-speed economy with AI/tech/export strength and weak domestic demand.
• Dennis says Xi is prioritizing technology and higher-end manufacturing over broad stimulus.
• Real estate is about a third of China's GDP and has been weak for five years; debt-to-GDP is near 300%.
• DeepSeek is cited as a cheaper, open-source AI model showing Chinese competitiveness.
• Host says Chinese semiconductor exports are adding ten percentage points to total Chinese export growth.
• Upcoming Trump-Xi September meeting is seen as one-day, likely focused on tariff pressure and Chinese chips.