The author argues that China remains entrenched in a severe deleveraging cycle characterized by weak economic fundamentals that overshadow any short-term boosts from exports or AI. Furthermore, the recent Xi-Trump summit failed to produce any meaningful macroeconomic shifts.
•China is stuck in a deep deleveraging cycle with weak credit growth, falling investment, and soft consumption.
•Structural economic weaknesses in China are overwhelming any temporary benefits from exports or AI demand.
•The recent Xi-Trump summit resulted in no significant macroeconomic changes, maintaining the current economic status quo.