The U.S. and China reached a new tariff agreement in Switzerland, significantly reducing certain bilateral tariffs. As we previously noted, the U.S.-China relationship resembles a marriage: frequent friction persists, but acomplete decoupling remains unlikely in the near term. While uncertainties around future tariff policies may linger (potentially impacting U.S. inflation and Chinese exports), we assess that the overall shock to China’s export sector will remain manageable. 

With the tariff war’s impact increasingly factored into market expectations, investor attention has returned to the AI sector. Key trends include: 

• Surging global AI inference demand.                                                                      • Accelerated iterations of large language models (LLMs). 

• Sustained strength in computing power demand.                                            • Proliferation of AI applications. 

We are particularly focused on developments in the AI application layer, where commercialization opportunities are rapidly emerging. 

Near-Term Risks to Monitor 

1）U.S. Treasury yield fluctuations.2）U.S. inflation dynamics.3）Evolving tariff policies