As U.S.-Russia negotiations advance, China is maneuvering as both a potential mediator and a strategic beneficiary. While Beijing publicly supports Trump’s push for a Ukraine settlement, it is also preparing to capitalize on reconstruction efforts and expand its influence in Europe. However, the bigger concern for China is the shifting trajectory of U.S. foreign policy. With a resolution in Ukraine on the horizon, Trump’s administration appears set to refocus its geopolitical efforts on China, escalating tensions over trade, technology, and military dominance in the Indo-Pacific.
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At the same time, Chinese tech stocks are rallying, driven by AI investments and easing regulatory pressures. This surge complicates Trump’s trade strategy, as heightened tariffs or policy crackdowns could disrupt China’s market momentum. Morgan Stanley has abandoned its bearish stance on Chinese equities, citing a “structural regime shift.” The firm raised its MSCI China Index target by 22%, aligning with bullish outlooks from Goldman Sachs and JPMorgan. With AI advancements and regulatory easing fueling the resurgence, China is emerging as a critical force in global investment flows.

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