China has expressed willingness to engage in discussions with the United States over artificial intelligence, while simultaneously warning of retaliatory actions if the U.S. imposes restrictions on Chinese companies. This dual approach illustrates the persistent tensions in the U.S.-China technology rivalry, set against a broader trade and technology dispute where each side seeks strategic advantage while hinting at openness to dialogue. Key indicators to watch include a potential visit by Xi Jinping to the U.S. before the end of 2026, which could serve as a key indicator of improving bilateral diplomatic relations.
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